Kyoto Financial : Consolidated Summary Report for the Fiscal Year Ended March 31, 2025

Consolidated Summary Report (Under Japanese GAAP) for the Fiscal Year Ended March 31, 2025

May 15, 2025

Company name: Kyoto Financial Group, Inc. Stock exchange listing: Tokyo Stock Exchange Securities code: 5844

URL: https://www.kyoto-fg.co.jp/

Representative: Nobuhiro Doi Director and President

Inquiries: Hideki Onishi Executive Officer, General Manager, Corporate Planning Division Scheduled date of annual general meeting of shareholders: June 27, 2025

Scheduled date to commence dividend payments: June 3, 2025 Scheduled date to file annual securities report: June 25, 2025 Trading accounts: None

Preparation of supplementary material on financial results: Yes Holding of financial results briefing: Yes

(Yen amounts and percentages are rounded down to millions and the first decimal place, unless otherwise noted.)

1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2025 (April 1, 2024 to March 31, 2025)

   1. Consolidated Operating Results (Percentages indicate year-on-year changes.)

      	Ordinary income		Ordinary profit		Net income attributable to owners of parent
      Fiscal year ended March 31, 2025 March 31, 2024	Millions of yen 167,258 137,691	% 21.4 -	Millions of yen 50,915 43,574	% 16.8 -	Millions of yen 36,552 31,572	% 15.7 -

      (Note) Comprehensive income:	Fiscal year ended March 31, 2025:	¥	(34,139) million	[	-%]
      	Fiscal year ended March 31, 2024:	¥	177,237 million	[	-%]

      	Net income per share	Diluted net income per share	Return on equity	Ratio of ordinary profit to total assets	Ratio of ordinary profit to ordinary income
      Fiscal year ended	Yen	Yen	%	%	%
      March 31, 2025	125.11	125.03	3.2	0.4	30.4
      March 31, 2024	106.55	106.47	2.9	0.3	31.6

      (Reference) Equity in earnings (losses) of affiliated companies: Fiscal year ended March 31, 2025: ¥ 6 million

      Fiscal year ended March 31, 2024: ¥ 3 million

      (Note) 1. The Company was incorporated on October 2, 2023, and therefore the percentage change from the previous period for the fiscal year ended March 31, 2024 are not stated.

2. The Company undertook a 4-for-1 stock split on January 1, 2024. The "Net income per share" and "Diluted net income per share" have been calculated assuming that the stock split was undertaken at the beginning of the fiscal year.

1. Consolidated Financial Position

   	Total assets	Total net assets	The Equity-to-asset ratio	Net assets per share
   As of	Millions of yen	Millions of yen	%	Yen
   March 31, 2025	12,161,140	1,083,193	8.9	3,734.10
   March 31, 2024	11,576,552	1,141,082	9.8	3,904.91

   (Reference) Equity: As of March 31, 2025: ¥ 1,082,794 million

   As of March 31, 2024: ¥ 1,140,874 million

   (Note) The Equity-to-asset ratio is computed by the formula shown below.

   (Total net assets - Share acquisition rights - Non-controlling interests) / Total assets

   The figures for the equity-to-asset ratio in the above table were not based on the regulations on the equity-to-asset ratio.

2. Consolidated Cash Flows

1. Dividends

   	Annual dividends					Total dividends	Payout ratio (consolidated)	Dividends to total net assets (consolidated)
   	1st quarter-end	2nd quarter-end	3rd quarter-end	Year-end	Total
   For the fiscal year	Yen	Yen	Yen	Yen	Yen	Millions of yen	%	%
   Ended March 31, 2024	-	-	-	35.00	35.00	10,225	32.8	0.9
   Ended March 31, 2025	-	30.00	-	30.00	60.00	17,465	47.9	1.5
   Ending March 31, 2026 (Forecast)	-	35.00	-	35.00	70.00		50.7

   (Note) 1. The Company was incorporated on October 2, 2023, and therefore figures through the second quarter of the fiscal year ended March 31, 2024 are not stated.

   1. Breakdown of the year-end dividend for the fiscal year ended March 31, 2024 :

      Commemorative dividend Commemorative dividend for the establishment of the Company 15.00 yen

   2. For the fiscal year ended March 31, 2024, The Bank of Kyoto, Ltd., which became a wholly owned subsidiary of the Company through a sole-share transfer, paid an interim dividend of 20 yen per share (for a total dividend of 5,948 million yen). When combined with the Company's year-end dividend, the annual dividend is 55 yen per share, for a total dividend of 16,174 million yen, equivalent to a payout ratio (consolidated) of 51.6% and ratio of dividends to Total net assets (consolidated) of 1.5%. (calculated assuming that the stock split was undertaken at the beginning of the fiscal year.)

2. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2026 (April 1, 2025 to March 31, 2026)

(Percentages indicate year-on-year changes.)

* Notes:

1. Significant changes in the scope of consolidation during the period: Yes

   Newly included: 2 (Company name: Kyoto Turnaround Servicer Co., Ltd., Sekisui Leasing Co., Ltd. )

2. Changes in accounting policies, changes in accounting estimates, and restatement

   1. Changes in accounting policies due to revisions to accounting standards and other regulations: Yes

   2. Changes in accounting policies due to other reasons: None

   3. Changes in accounting estimates: None

   4. Restatement: None

3. Number of issued shares (common shares)

   1. Total number of issued shares at the end of the period (including treasury shares): March 31, 2025: 301,362,752 shares

      March 31, 2024: 303,362,752 shares

   2. Number of treasury shares at the end of the period:

      March 31, 2025: 11,388,209 shares

      March 31, 2024: 11,199,168 shares

   3. Average number of shares outstanding during the period:

Fiscal Year ended March 31, 2025: 292,145,081 shares

Fiscal Year ended March 31, 2024: 296,317,903 shares

(Note) 1. The Company was incorporated on October 2, 2023 as a result of a sole share transfer. Therefore, the average number of common shares outstanding during the period was calculated using a combination of data of The Bank of Kyoto, Ltd. for the period from April 1, 2023 to October 1, 2023 prior to the incorporation, and of the Company for the period from October 2, 2023 to March 31, 2024.

2. The Company undertook a 4-for-1 stock split on January 1, 2024. The "average number of shares outstanding during the period" has been calculated assuming that the stock split was undertaken at the beginning of the fiscal year.

• Financial results reports are exempt from audit conducted by certified public accountants or an audit firm.

• Proper use of earnings forecasts, and other special matters

The description of future performance of this report is based on information which is presently available and certain assumptions which are considered to be reasonable, and it does not guarantee future performance.

Please take note that future performance may differ from forecasts depending on various future factors.

The Company plans to hold a financial results briefing for institutional investors and analysts on May 28, 2025.

• Contents of Appendix

  1. Overview of Operating Results, etc. 2

     1. Overview of Operating Results for the Fiscal Year 2

     2. Overview of Financial Position for the Fiscal Year 2

     3. Overview of Cash Flows for the Fiscal Year 2

     4. Future Prospects 2

  2. Basic Approach to the Selection of Accounting Standards 2

  3. Consolidated Financial Statements and Primary Notes 3

1. Consolidated Balance Sheets 3

2. Consolidated Statements of Income and Comprehensive Income 5

3. Consolidated Statements of Changes in Equity 7

4. Consolidated Statements of Cash Flows 9

5. Notes to Consolidated Financial Statements 11

(Notes on Going Concern Assumption) 11

(Changes in Accounting Policies) 11

(Business Combinations, etc.) 11

(Segment Information) 12

(Per Share Information) 13

(Significant Subsequent Events) 14

(Reference Materials) Supplement Information for FY2024.

1. Overview of Operating Results, etc.

   1. Overview of Operating Results for the Fiscal Year

      The ordinary income increased by 29,566 million yen from the previous consolidated fiscal year, reaching 167,258 million yen, due to factors such as an increase interest income, primarily interest on loans, and an increase fees and commissions, mainly from corporate transaction-related fees, including fees related to syndicated loans and M&A.

      The ordinary expenses increased by 22,224 million yen from the previous consolidated fiscal year, reaching 116,342 million yen, due to factors such as a rise in funding costs resulting from the increase in domestic deposit interest rates.

      As the result, ordinary profit increased by 7,341 million yen compared to the previous consolidated fiscal year, reaching 50,915 million yen, and the net income attributable to owners of parent increased by 4,979 million yen compared to the previous consolidated fiscal year, reaching 36,552 million yen.

      The consolidated financial results for the previous fiscal year were prepared by inheriting the consolidated financial results of the Bank of Kyoto, Ltd. which became a wholly-owned subsidiary through a sole share transfer.

   2. Overview of Financial Position for the Fiscal Year

      Deposits and negotiable certificates of deposit increased by 206.7 billion yen compared to the end of the previous consolidated fiscal year, reaching 9,572.0 billion yen, due to an increase in personal deposits and others.

      Loans increased by 550.7 billion yen compared to the end of the previous consolidated fiscal year, reaching 7,268.2 billion yen, primarily due to an increase in corporate lending.

      Securities decreased by 31.7 billion yen compared to the end of the previous consolidated fiscal year, reaching 3,304.8 billion yen. The valuation difference (unrealized gain) due to mark-to-market accounting decreased by 102.1 billion yen compared to the end of the previous consolidated fiscal year, reaching 825.2 billion yen.

      Total assets increased by 584.5 billion yen compared to the end of the previous consolidated fiscal year, reaching 12,161.1 billion yen. Total net assets decreased by 57.8 billion yen compared to the end of the previous consolidated fiscal year, reaching 1,083.1 billion yen.

      The consolidated equity-to-asset ratio (domestic standard) was 12.16%.

   3. Overview of Cash Flows for the Fiscal Year

      Cash flow from operating activities in the current consolidated fiscal year was a positive 501.6 billion yen due to factors such as an increase in deposits. (The previous consolidated fiscal year was a negative 36.7 billion yen.)

      Cash flow from investing activities in the current consolidated fiscal year was a negative 84.8 billion yen due to the acquisition of securities and other factors. (The previous consolidated fiscal year was a negative 175.5 billion yen.)

      Cash flow from financing activities in the current consolidated fiscal year was a negative 24.0 billion yen due to dividend payments and the acquisition of treasury stock. (The previous consolidated fiscal year was a negative 25.4 billion yen.)

      As a result, cash and cash equivalents at end of period increased by 392.7 billion yen during the current consolidated fiscal year, reaching 1,322.2 billion yen.

   4. Future Prospects

      For the fiscal year ending March 2026, the Company anticipates consolidated ordinary income to be 199.7 billion yen, consolidated ordinary profit to be 58.1 billion yen, and net income attributable to owners of parent to be 40.0 billion yen.

2. Basic Approach to the Selection of Accounting Standards

   The Group applies Japanese standards.

   In addition, regarding the application of IFRS (International Financial Reporting Standards), we will take into account various situations in Japan and overseas and respond appropriately.

3. Consolidated Financial Statements and Primary Notes