Revised on August 29, 2008
May 27, 2008

Financial Statements for the Fiscal 2007

Name：

（ＵＲＬ
http://www.nochubank.or.jp/ ）
Name of the President:
Hirofumi Ueno, President & Chief Executive Officer
The Person Responsible for Inquiries： Kazuo Yoshida, General Manager of Financial Planning & Control Division

(Note) Amounts less than one million yen and digits after decimal point presented are rounded down.
1. Consolidated Financial Results for the Fiscal 2007 (for the fiscal year ended March 31, 2008)
(1) Consolidated Results of Operations
(Percentage represents change from the previous year)

Ordinary Income
Ordinary Profits
Net Income

Millions of Yen
％

Millions of Yen
％

Millions of Yen
％

Fiscal 2007
2,639,764
0.6
363,195
（
2.6）
276,880 7.8

Fiscal 2006
2,621,450
48.9
373,242
17.4
256,837
（
4.6）
Net Assets
Net Income Ratio
Total Assets
Ordinary Profits Ratio
Total Income
Ordinary Profits Ratio
％
％
％

Fiscal 2007
7.2
0.5
13.7
Fiscal 2006
6.1
0.5
14.2

(Ref) Equity in Earnings of Affiliates for Fiscal 2007
519
millions of Yen for Fiscal 2006
819
millions of Yen

(2) Consolidated Financial Conditions
*Consolidated BIS Capital Adequacy Ratio as of March 31, 2008 is preliminary.

Total Assets
Total Net Assets
Net Assets
Ratio (Note 1)
Consolidated BIS Capital
Adequacy Ratio (Note 2)
Millions of Yen
Millions of Yen
％

％

Fiscal

2007
61,085,505
3,229,901
5.2
12.47
Fiscal

2006
68,242,099
4,445,888
6.5
12.84

(Ref) Net Assets - Minority Interests for Fiscal 2007
3,223,944
millions of Yen for Fiscal 2006
4,440,192
millions of Yen

(Note 1)

"Net Assets Ratio" is computed by dividing ( Net Assets − Minority Interests ) by the Total Assets.
(Note 2) The calculation of the Norinchukin Bank's Consolidated BIS Capital Adequacy Ratio is based on the formula found in Notification No.4
of the Financial Services Agency and the Ministry of Agriculture, Forestry and Fisheries (Standards for Judging the Soundness of Management of the Norinchukin Bank).

(3) Consolidated Cash Flows

Cash Flows from
Operating Activities
Cash Flows from
Investing Activities
Cash Flows from
Financing Activities
Cash and Cash Equivalents
at the end of the fiscal year
Millions of Yen
Millions of Yen
Millions of Yen
Millions of Yen
Fiscal

2007
(2,157,384)
1,691,897
311,964
180,738
Fiscal

2006
(3,401,783)
2,747,991
310,577
334,260
1

2
(４) Changes in the Scope of Consolidation (Specified Subsidiaries) in the fiscal year : No

(5) Changes in Accounting Principles, Methods or Presentations of Consolidated Financial Statements
①
Changes due to revisions of Accounting Standards : Yes
②
Changes other than ① above : Yes
(Note) Please refer to the following notes for details.
Notes No. 6, 13, and 44 in Consolidated Balance Sheets Note No. 5 in Consolidated Statements of Operations
2. Non-consolidated Financial Results for the Fiscal 2007 (for the fiscal year ended March 31, 2008)
(1) Non-consolidated Results of Operations
(Percentage represents change from the previous year)

Ordinary Income
Ordinary Profits
Net Income

Millions of Yen
％

Millions of Yen
％

Millions of Yen
％

Fiscal 2007
2,625,735
0.7
352,703
（
3.5）
272,073 7.1

Fiscal 2006
2,605,749
49.3
365,687
17.4
253,886
（
5.1）

(2) Non-consolidated Financial Conditions
*Non-Consolidated BIS Capital Adequacy Ratio as of March 31, 2008 is preliminary.

Total Assets
Total Net Assets
Net Assets
Ratio (Note 1)
Non-Consolidated BIS Capital
Adequacy Ratio (Note 2)
Millions of Yen
Millions of Yen
％

％

Fiscal

2007
61,191,721
3,202,479
5.2
12.55
Fiscal

2006
68,487,228
4,423,024
6.4
12.84

(Ref) Net Assets for Fiscal 2007
3,202,479
millions of Yen for Fiscal 2006
4,423,024
millions of Yen

(Note 1)

"Net Assets Ratio" is computed by dividing the Net Assets by the Total Assets.
(Note 2) The calculation of the Norinchukin Bank's
Non-
Consolidated BIS Capital Adequacy Ratio is based on the formula found in Notification
No.4 of the Financial Services Agency and the Ministry of Agriculture, Forestry and Fisheries (Standards for Judging the Soundness of Management of the Norinchukin Bank).
3. Forecasted Non-consolidated Financial Results for Fiscal 2008 (for the fiscal year ended March 31, 2009)
(Percentage represents change from the previous year)

Ordinary Profits

Millions of Yen
％

Fiscal 2008
350,000

(0.7)
The above forecast is based on the information available at the time of the release date of this material and on the assumption that there are unknown factors which may impact the Bank's business outcomes in the future. As a result, actual figures may vary greatly from the forecasted figures. Please note that we assume no obligation or responsibility for the above-mentioned forecasted results.

The YEAR in Revi w
e
o

The Bank’s total assets at the end of the fiscal year were ¥61,191 billion, down ¥7,295 billion
from the previous fiscal year-end.
On the procurement side, deposits amounted to ¥38,813 billion and the balance of debentures
was ¥4,822 billion.
On the asset side, the loan balance was ¥9,795 billion and the securities balance was ¥36,262
billion.
Although the Bank recorded revaluation losses caused by the turmoil in the global financial
market including U.S. sub-prime loan issues, it was able to maintain ordinary profits of ¥352 billion and net income of ¥ 272 billion for the fiscal year through profits from alternative assets resulting and disposition of securities by its continuous efforts in promoting globally diversified investments for enhancement of its profitability in the declining trends of U.S. interest rate. The Bank’s gross operating profits were ¥ 440 billion and net operating profits (before reversal of reserve for possible loan losses) were ¥ 335 billion.
The Bank’s shares in the consolidated financial statements are extremely high. Consolidated
total assets at the end of the fiscal year were ¥61,085 billion, down ¥ 7,156 billion. Consolidated ordinary profits were ¥363 billion and consolidated net income was ¥276 billion.
(Note) All the amounts shown in this document are rounded down.

Capital Adequacy Rati

（
100Millions of Yen）
Change
(preliminary)
12.55
12.84
(0.29)
9.37
6.97
2.40
40,409
47,852
(7,443)
30,198
25,968
4,230
25,758
29,799
(4,040)
321,979
372,491
(50,511)
（
100Millions of Yen）
Change
(preliminary)
12.47
12.84
(0.37)
9.39
7.01
2.38
40,388
47,942
(7,554)
30,408
26,184
4,224
25,906
29,856
(3,949)
323,828
373,200
(49,371)
BIS Capital Adequacy Ratio (%)Tier I Ratio (%)
Total capital requirementsRisk Adjusted Assets
Total capitalTotal tier I capital
○
Non-Consolidated BIS Capital Adequacy Ratio
(Amounts less than 100 million yen and digits after decimal point presented are rounded down)
Fiscal 2007
Fiscal 2006
Fiscal 2006
BIS Capital Adequacy Ratio (%)Tier I Ratio (%)
Fiscal 2007
(Amounts less than 100 million yen and digits after decimal point presented are rounded down)
Total capital requirementsRisk Adjusted Assets
Total capitalTotal tier I capital
○
Consolidated BIS Capital Adequacy Ratio
3

Current is ues to be add ess d by the Bank and the Bank’s future polices
s
r
e
1. Understanding of the Conditions
Japanese economy continues its moderate growth, the pace is slowing due to the effect of
deceleration in the US economy and turmoil in the global financial market.
Meanwhile, as Japanese economy and society matures, demographic changes, widening of
regional income gap, and an increasing public interest in Corporate Social Responsibility (CSR) have been observed. The Bank is fully aware that Japan is experiencing its largest ever change in its history in all aspects of economy and society due to such environmental changes coupled with the development of globalization in Japan.
With growing interest in food safety & security and multifunctionality of agriculture, the Bank
realizes that the agriculture, forestry and fisheries industries in Japan are now pressed to make structural reforms to cope with longstanding factors such as increase in import goods, low prices, shortage of core-farmers, and changes in population composition in rural areas as well as recent issues such as increase in cost resulting from surging oil and grain prices and the “core-farmers” focused agricultural policy which is in its implementation phase.
In Japanese financial market, the competition among banks including regional banks has
intensified mainly because mega banks have strengthened their strategies on customer retention in retail market after the formation of Japan Post Bank Co., Ltd. It is becoming to look like a war of attrition or a contest of endurance.
With the implementation of requirements such as BIS II regulations (Basel II) and Internal
Control Reporting System (J-SOX), the required level of performance to be met by banks has become more sophisticated. The Bank as well as JA and Shinnoren realize that their pressing issue is to prepare a system to meet those requirements which are prerequisite to banks.

2. Basic Concepts
In the midst of environmental changes such as changes in the composition of clients and
cooperative members and increasing competition in the retail financial market, the Bank will contribute to achieve the objectives of the JA Bank as a whole by fulfilling its basic missions.
Above all, the Bank actively executes the growth strategy of the JA Bank together with JA and
Shinnoren to ensure the trust of clients and cooperative members in the JA Bank and to secure its strong position in Japan’s financial market.
To accomplish this, the Bank takes initiatives not only in its business activities related to the
agriculture, forestry and fisheries industries and the cooperative banking business, but also in the wider areas of total industry-, society-, and environment-conscious activities. To achieve this, the Bank will take further steps to advance its business model, which has two mainstay management goals: namely, retail banking carried as the cooperative banking business as well as investment and lending activities.
In parallel with this, the Bank is endeavoring to nurture an organizational culture appropriate
for a global financial institution that operates under the Financial Holding Company (FHC)
4

5
status in the U.S. financial market. As a prerequisite for the Bank’s business model, the Bank rigorously adopts measures to upgrade its management and control systems including strengthening its compliance system.

3. Management Issues
The followings are the Bank’s Management Issues which were established based on
Understanding of the Conditions and Basic Concepts described above.
(1) The Bank will achieve its objectives by implementing retail business strategies based on
“JA Bank Medium-Term Strategy”. In addition, the Bank will promote developments of management control system, business and clerical work operating system, distribution channel, human resource development, public relations system and begin a full-scale study on the establishment of optimal regional-basis operating system for implementing retail businesses in an effective and efficient manner. Along with these activities, the Bank will take measures to reform the business activities and organization of the Fishery Cooperative Banking Business.
(2) Based on the careful examination of returns on capital and risks that are a source of profits,
the Bank will secure stable earnings by taking risks appropriately from a global perspective and in a diversified manner through managing overall asset allocation spanning from market investment to lending. In addition, the Bank will provide appropriate financial services to agriculture, forestry and fisheries industries related fields.
(3) In full recognition of the Bank’s basic missions and social responsibility as a major
institutional investor, the Bank will reinforce its corporate governance as well as develop and enhance its management and control systems. Moreover, the Bank will not only conduct financial management by balancing profits, risks, and capital, but also implement a personnel policy fortified by diverse and competent human resources. Also, the Bank will strengthen its “selective and concentrated” strategy for the whole scope of its business.