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Consolidated Financial Results for FY2018

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Consolidated Financial Results for FY2018 Resona Holdings, Inc. Consolidated Financial Results for Fiscal Year 2018 (April 1, 2018 - March 31, 2019/ Unaudited) <under Japanese GAAP> Code number: 8308 Stock exchange listings: Tokyo URL: https://www.resona-gr.co.jp/holdings/english/index.html Representative: Kazuhiro Higashi, Director, President and Representative Executive Officer Contact: Narunobu Ota, General Manager, Finance and Accounting Division Telephone: +81-3-6704-3111 General Meeting of Stockholders: June 21, 2019 Dividends payment date: June 6, 2019 Annual securities report issuing date: June 25, 2019 Trading accounts: Established Supplemental information for the financial results: Available Investor relations meeting: Scheduled (for institutional investors and analysts) Note: Amounts of less than one million yen are rounded down. 1. Consolidated Financial Results for Fiscal Year 2018 (April 1, 2018- March 31, 2019） (1) Consolidated Operating Results (% represents the change from the previous fiscal year) Net Income Attributable to Ordinary Income Ordinary Profits Owners of Parent Million yen % Million yen % Million yen % Fiscal Year 2018 860,706 ( 15.9) 203,018 ( -6.8) 175,162 (-25.9) Fiscal Year 2017 742,927 ( -2.0) 217,777 ( -3.8) 236,251 ( 46.3) Note: Comprehensive Income: FY 2018: 112,287 million yen (-63.9%) FY 2017: 311,063 million yen (30.9%) Net Income to Net Net Income Diluted Net Ordinary Profits Ordinary Profits Assets Attributable per Share of Income per Share to Total Assets to Ordinary to Stockholders Common Stock of Common Stock Ratio Income Ratio Ratio Yen Yen % % % Fiscal Year 2018 75.63 75.63 8.3 0.4 23.6 Fiscal Year 2017 100.51 － 11.8 0.4 29.3 (Reference) Equity in earnings of investments in affiliates: FY 2018: 2,146 million yen FY 2017: 296 million yen Note: Diluted Net Income per Share of Common Stock for Fiscal Year 2017 is not disclosed because there were no potentially dilutive common shares. (2) Consolidated Financial Conditions Net Assets Attributable Net Assets per Total Assets Net Assets to Stockholders to Total Share of Common Assets Ratio Stock Million yen Million yen % Yen March 31, 2019 59,110,075 2,356,178 3.6 911.17 March 31, 2018 50,243,789 2,102,936 4.2 900.72 (Reference) Net Assets Attributable to Stockholders: March 31, 2019: 2,111,030 million yen March 31, 2018: 2,085,147 million yen Note: Net Assets Attributable to Stockholders to Total Assets Ratio is calculated at (Net assets at fiscal year-end minus Stock acquisition rights at fiscal year-end minus Noncontrolling interests at fiscal year-end) divided by Total assets at fiscal year-end. This ratio is not capital adequacy ratio defined in the “Notification on Consolidated Capital Adequacy.” (3) Consolidated Cash Flows Cash and Cash Cash Flows from Cash Flows from Cash Flows from Equivalents at Fiscal Operating Activities Investing Activities Financing Activities Year-end Million yen Million yen Million yen Million yen Fiscal Year 2018 324,420 243,591 ( 53,636) 14,707,458 Fiscal Year 2017 923,028 110,518 (265,843) 13,256,798 2. Dividends on Common Stock Dividends per Share Dividends to Total Dividend 1st 2nd 3rd Net Assets Fiscal Dividends Payout Ratio Quarter- Quarter- Quarter- Total Ratio Year-end (Annual) (Consolidated) end end end (Consolidated) Yen Yen Yen Yen Yen Million yen % % Fiscal Year 2017 － 10.00 － 10.00 20.00 46,462 19.9 2.4 Fiscal Year 2018 － 10.50 － 10.50 21.00 48,785 27.8 2.3 Fiscal Year 2019 － 10.50 － 10.50 21.00 30.4 (Forecast) Note: The table shows dividends on common stock. Please refer to following "Dividends on Classified Stock" for the details of dividends on classified stock (unlisted) whose legal rights differ from common stock. 3. Earnings Targets for Fiscal Year 2019 (April 1, 2019 - March 31, 2020) (% represents the change from the same period in the previous fiscal year) Net Income Attributable to Net Income per Share of Common Stock Owners of Parent Million yen % Yen 1st Half of Fiscal Year 2019 76,000 (-37.8) 32.80 Fiscal Year 2019 (Full year) 160,000 ( -8.7) 69.06 ※ Other Notes (1) Changes in Significant Subsidiaries during the Fiscal Year: Yes New : 2 companies Kansai Urban Banking Corporation, The Minato Bank, Ltd. Excluded : Not applicable (2) Changes in Accounting Policies, Changes in Accounting Estimates and Restatement during the Fiscal Year A) Changes due to revision of accounting standards: No B) Changes due to other reasons: No C) Changes in accounting estimates: No D) Restatement: No (3) Number of Shares of Common Stock Outstanding A) Total outstanding shares including treasury stock at the fiscal year-end March 31, 2019: 2,324,118,091 shares March 31, 2018: 2,324,118,091 shares B) Treasury stock at the fiscal year-end March 31, 2019: 7,296,614 shares March 31, 2018: 9,153,062 shares C) Average outstanding shares during the fiscal year Fiscal Year 2018: 2,315,804,375 shares Fiscal Year 2017: 2,315,491,365 shares Note: Treasury stock at the fiscal year-end included the stocks owned by ESOP-type Stock Benefit Trust for the Employee Shareholding Association. March 31, 2019 6,314,100 shares March 31, 2018: 8,179,100 shares ※ This Consolidated Financial Results is not subject to audit by Certified Public Accountants or Audit Firm. ※ Disclaimer regarding Forward-looking Statements and Other notes This report contains forward-looking statements, which are based on the information currently available and certain assumptions the company considers to be reasonable. Risks, uncertainties and other factors may cause actual results, performance, achievements or financial position to be materially different from any future results, performance, achievements or financial position expressed or implied by these forward-looking statements. Please refer to attachment “1. Overview of Operating Results (2) Future Outlook” for the assumptions used for the earnings targets. Note: How to get supplemental information for the financial results Supplemental information for the financial results is disclosed through TD net. Investor relations meeting for institutional investor or analyst is scheduled on May 23, 2019. Materials for the meeting will be available on the web site after the meeting. ○ Dividends on Classified Stock Dividends per share on classified stock whose legal rights differ from common stock are as follows: Dividends per Share 1st Quarter- 2nd Quarter- 3rd Quarter- Fiscal Year- Total end end end end Class Five Preferred Stock Yen Yen Yen Yen Yen FY 2017 － 459.375 － － 459.375 FY 2018 － － － － － FY 2019 (Forecast) － － － － － Note: Regarding Class Five Preferred Stock, the Company implemented acquisition and cancellation on March 15, 2018. ○ Formula for Targeted Net Income per Share of Common Stock Targeted net income attributable to owners of parent Forecasted average number of shares of common stock (excluding treasury stock) * Forecasted average number of shares of common stock (excluding treasury stock): 2,316,821,477 shares Effect from acquisiton of own shares is not considered. Resona Holdings, Inc. Contents of Attachment 1. Overview of Operating Results ……………………………………….............................................................. 2 (1) Overview of Operating Results and Financial Conditions …………................................................... 2 (2) Future Outlook …………………………………………………………………………………………........ 2 2. Basic Stance on Selection of Accounting Standards ………………………………………………………...... 3 3. Consolidated Financial Statements ............................................................................................................ 4 (1) Consolidated Balance Sheet ………………………………………………….………………………….... 4 (2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income .......... 5 (3) Consolidated Statement of Changes in Net Assets …….................................................................... 7 (4) Consolidated Statement of Cash Flows …….……............................................................................. 9 (5) Note on Going-Concern Assumption …….……............................................................................... 11 (6) Other Notes...................................................................................................................................... 11 Segment Information …………………………………………………….………………….................. 11 Per Share Information ……………................................................................................................ 12 Significant Subsequent Event ……………………………………………......................................... 13 Statement of Trust Assets and Liabilities ………........................................................................... 13 1 Resona Holdings, Inc. 1. Overview of Operating Results (1) Overview of Operating Results and Financial Conditions Consolidated gross operating profit for the fiscal year 2018 amounted to ¥644.1 billion and increased by ¥91.6 billion from the previous fiscal year. If compared to the amount adding both Kansai Urban Banking Corporation and The Minato Bank, Ltd.’s consolidated figures for the previous same period to the Company’s previous figure (“Adjusted year on year”), it decreased by ¥17.1 billion. Net interest income decreased due to narrowed spread between deposit rates and loan rates, though the effect was partially offset by increase in fees relating to housing loan and corporate solution. Due to implementation of measures to improve soundness of securities portfolio mainly for foreign bonds, net gains or losses on bonds (including futures) included in other operating profit decreased by ¥2.7 billion
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