leading to new horizons - jトラスト株式会社 · pt bank mutiara tbk. became a j trust...

Annual ReportYear Ended March 31, 2015

2015

NEW HORIZONSLEADING TO

NEW HORIZONSLEADING TO

Banking group laying the foundation for

Asia’s futureThe J Trust Group has deployed proactive M&A activities to broaden its

business domain. In our new stage of development, we are aiming for rapid

growth in Asia while positioning the financial business as our core business.

Corporate Philosophy and Behavioral Principles

For our customers, shareholders and ourselves, we make continuous

effort to respond quickly to changing environment and challenge

ourselves diligently to create better future for the world.

The four key principles that guide us as we perform our mission are:

1. Treat all stakeholders, including customers, shareholders and business partners as our customers

and take a customer-centric approach to meet their expectations,

2. Tackle various issues swiftly while pursuing ingenuity and improvements without being satisfied with

the status quo,

3. Ensure timely, appropriate and fair disclosure as well as upholding high ethical standards for

business execution,

4. Create new services and value to support economic expansion.

Corporate Philosophy

J Trust’s Behavioral Principles are

based on the six letters of the alphabet

that constitute its name:

J (for “justice”)

T (for “teamwork”)

R (for “revolution”)

U (for “unique”)

S (for “safety”)

T (for “thankful”)

Behavioral Principles

We execute business operations in a fair manner,

respecting the individuality of employees, the foundation

of our company. We aim to be innovative, create new

value, focus on our uniqueness and assure stakeholders

and customers of our high-quality service. Staying

thankful to stakeholders and customers, we put our

Corporate Philosophy into practice.

1

Our Building BlocksOVERVIEW

We are building a management base in Asia for further growth.

Developing comprehensive fi nancial services that organically integrate savings bank

business, installment loan and leasing business, and receivable collection business

Financial business in South Korea

Concentrating on credit guarantees for property-based loans and receivable collection

business that utilize our unique strengths

Domestic fi nancial business

Developing businesses in peripheral banking areas in which we can pursue synergies, with

focus on Bank JTrust Indonesia

Financial business in Southeast Asia

Holding company that sets management strategies and provides operational support for

Group companies

J Trust

Developing “Japan-quality” services for the global market

Non-fi nancial business

During fiscal 2015, the J Trust Group made strides in building a management base for contin-

ued stable expansion while maintaining our high growth potential. Asia’s dramatic economic

development is creating greater possibilities for expanding our framework for providing new

financial products and services. We are building a management base to propel the growth of

our financial businesses in South Korea and Southeast Asia, while at the same time positioning

the domestic financial business as the Group’s core business, generating stable cash flow.

J Trust Co., Ltd. Annual Report 20152

South Korea

Singapore

JapanIndonesia

Since entering the financial business in South Korea

with the acquisition of a consumer finance company

in 2011, we have acquired two savings banks, two

consumer finance companies, and one capital

company (as of August 2015). Furthermore, we are

aiming for earnings growth by strengthening our

management base and increasing our accounts

receivable.JTRUST ASIA was established to seek out and

pursue opportunities for expansion in businesses

with potential for Group synergies in Southeast Asia,

where population expansion and high economic

growth are anticipated. By creating new businesses

that integrate the expertise we have cultivated in

Japan, we will contribute to Southeast Asia’s eco-

nomic development. Having a hub in Singapore

will also raise our presence in global markets.

To transform our management to be able to maintain

stable, medium- to long-term earnings, we are carry-

ing out a major restructuring of the business, focus-

ing on headcount reductions, significantly reducing

the size of our unsecured loan business, and utilizing

our strengths to fortify our credit guarantees for

property- based loans and receivable collection

businesses.

In November 2014, the Indonesian commercial bank

PT Bank Mutiara Tbk. became a J Trust subsidiary.

Indonesia is Southeast Asia’s most populous country

and has high economic growth potential. In addition

to providing diverse services to the country’s middle

class, we are building a base that will be able to pro-

vide financial services to Southeast Asia, and further

in the future, the rest of the world.

J Trust Co., Ltd. Annual Report 2015 3J Trust Co., Ltd. Annual Report 2015 3

Our Growth Trajectory

South Korea

Japan

OVERVIEW

Entered South Korea

We are building on our fi nancial business to pursue growth in Asia.

Following a stage of rapid business expansion through mergers and acquisitions

focusing on the purchase of receivables, the J Trust Group is currently transitioning to a

stage of continuous profit growth focusing on the banking business. While maintaining

the financial business as our foothold, we have been exploring possibilities in a variety

of businesses, and this has led to our growth as a comprehensive banking group active

in Japan, South Korea, and Southeast Asia.

2011Acquired

Neoline Credit Co., Ltd.

1977 EstablishedEntered

the financial business

2005Entered

the real estate business

2005Entered

the credit guarantee business

2008Nobuyoshi Fujisawa became the largest shareholder of the Company through

a TOB

Established Ikko Shoji Co., Ltd.

J Trust Co., Ltd. Annual Report 201544 J Trust Co., Ltd. Annual Report 2015

Southeast Asia

2012Chinae Savings Bank Co., Ltd.1

started its operations

2014Acquired

two consumer finance

companies

2014Integrated the loan

business of our three South Korean consumer

finance companies into Chinae Savings

Bank1

2015Acquired Standard

Chartered Savings Bank Korea Co., Ltd.2 and Standard Chartered

Capital (Korea) Co., Ltd.3

1 Currently JT Chinae Savings Bank Co., Ltd.

2 Currently JT Savings Bank Co., Ltd.3 Currently JT Capital Co., Ltd.

Made KJI Consumer Finance LLC and HICAPITAL Co., Ltd. subsidiaries

Acquired Kazaka Servicer Co., Ltd. (currently Partir Servicer Co., Ltd.)

2008Entered

the servicer business

2009Changed

company name to J Trust Co., Ltd.

2010Shifted to

holding company structure

2011Entered

the credit card business

2012Entered

the amusement business

2013Raised

97.6 billion yen through

rights offering

Acquired KC Card Co., Ltd. (currently J TRUST Card Co., Ltd.)

Made ADORES, Inc. and BREAK Co., Ltd. subsidiaries

FY2015

Operating revenue ¥63.2 billion

Total assets ¥540.7 billion

FY2012



FY2010



FY2008



2015Invested in

the hire-purchase financing business

for motorcycles in Thailand2014

Acquired PT Bank

Mutiara Tbk.4 in Indonesia2013

Established JTRUST ASIA

PTE. LTD. in Singapore

4 Currently PT Bank JTrust Indonesia Tbk.

Underwrote convertible bond issued by Group Lease PCL

Entered Southeast Asia

J Trust Co., Ltd. Annual Report 2015 55J Trust Co., Ltd. Annual Report 2015

OVERVIEW

We aim to achieve the targets set in the Medium-Term Business Plan.

In May 2015, the J Trust Group formulated a Medium-Term Business Plan covering the period

from April 2015 to March 2018. Aiming for continuous profi t growth driven by our banking

businesses in South Korea and Southeast Asia, we will organically connect businesses and

create synergies to provide fi nancial services that transcend existing concepts. Our targets

for the fi scal year ending March 2018 are for operating revenue of 142.1 billion yen, operating

income of 21.7 billion yen, and ROE of 10.0%.

Medium-Term Business Plan Vision

Aim to be a provider of unique fi nancial services not

constrained by existing paradigms

FY2015 results

Operating revenue¥63.2 billion

Operating loss¥–5.2 billion

ROE 5.6%

FY2016 targets


Operating income ¥7.5 billion

ROE 2.5%

Our Destination

6 J Trust Co., Ltd. Annual Report 2015

For more information about business segments, please see pages 20–30.

FY2017 targets



ROE 7.0%

FY2018 targets



ROE 10.0%


P. 20


P. 28


P. 24

Non-fi nancial business

P. 30

J Trust Co., Ltd. Annual Report 2015 7

CONTENTS

The J Trust Group has formulated a Medium-Term

Business Plan, commencing in fi scal 2016. This section

introduces the business foundation that will support this

plan, outlines the J Trust Group’s history, and highlights

the targets set in the Medium-Term Business Plan.

2 OVERVIEW

10 Eight-year Financial Summary

20 Financial Business

in South Korea

24 Financial Business

in Southeast Asia

28 Domestic Financial

Business

30 Non-financial

Business

The J Trust Group

Strategy

A message from President & CEO Nobuyoshi Fujisawa,

and discussions from business heads outlining our

strategies under the Medium-Term Business Plan

14 To Our Stakeholders

NEW HORIZONSLEADING TOSpecial

Feature

8

Note on Forward-Looking Statements

This annual report contains projections related to the J Trust Group’s future

performance and other matters. Such projections reflect the judgment of

management based on information currently at hand, and therefore incorporate

latent risks and uncertainties. Readers are asked to understand that actual

results may differ significantly from such projections due to various factors, such

as economic trends and business conditions.

Regarding the names of consolidated subsidiaries

In June 2015, the name of Chinae Savings Bank Co., Ltd. was changed to

JT Chinae Savings Bank Co., Ltd., and the name of PT Bank Mutiara Tbk. was

changed to PT Bank JTrust Indonesia Tbk. For convenience purposes, this

annual report uses the subsidiaries’ names after the change: JT Chinae Savings

Bank and PT Bank JTrust Indonesia.

32 Directors and Audit & Supervisory Board Members

34 Corporate Governance

38 Risk Management

39 Messages from Outside Executives

40 The J Trust Group’s CSR Activities

Management/CSR

44 At a Glance

46 Management’s Discussion and Analysis of Operations

54 Consolidated Balance Sheets

56 Consolidated Statements of Income

57 Consolidated Statements of Comprehensive Income

58 Consolidated Statements of Changes in Net Assets

60 Consolidated Statements of Cash Flows

62 Financial Data of Principal Overseas Subsidiaries

68 Corporate Information

69 Investor Information

Financial & Corporate Data


Eight-year Financial SummaryAs of or for the fi scal years ended March 31

2008 2009

Operating Results

Operating revenue ¥ 3,201 ¥ 4,946

Operating income (loss) 23 240

Ordinary income (loss) 31 296

Net income 100 306

Cash Flows

Net cash provided by (used in) operating activities ¥ 15,924 ¥ (2,847)

Net cash provided by (used in) investing activities 475 1,997

Net cash provided by (used in) financing activities (15,615) 871

Cash and cash equivalents at end of period 2,896 2,918

Interest-bearing liabilities (excluding deposits by banking business) 2,767 3,884

Financial Position

Total assets ¥ 12,189 ¥39,811

Net assets 6,562 6,846

Equity capital 6,562 6,837

Per Share Information (Yen/U.S. dollar)

Net income per share ¥ 1.83 ¥ 5.57

Diluted net income per share — —

Net assets per share 119.13 124.14

Dividend per share 0.50 1.50

Key Management Indices, etc.

Capital adequacy ratio (%) 53.8 17.2

Return on equity (%) 1.5 4.6

Return on assets (%) 0.8 1.2

Debt-to-equity ratio (times) 0.42 0.57

Number of employees 81 217

Total number of outstanding shares (thousand shares) 27,652 27,652

Notes: 1. The Company implemented a two-for-one split of its common shares on June 1, 2012. The above per share figures have been adjusted to reflect this stock split.

2. The U.S. dollar amounts are stated at the exchange rate of ¥120.17 to U.S.$1, the rate prevailing on March 31, 2015.


(Millions of yen) (Thousands of U.S. dollars)

2010 2011 2012 2013 2014 2015 2015

¥16,541 ¥16,908 ¥ 24,508 ¥ 55,683 ¥ 61,926 ¥ 63,281 $ 526,604

4,165 4,324 5,539 12,005 13,745 (5,217) (43,419)

4,303 4,323 5,486 13,704 13,351 (2,385) (19,850)

4,108 3,233 34,500 13,309 11,145 10,143 84,406

¥ (6,819) ¥ 9,234 ¥ (16,489) ¥ 9,378 ¥ 11,434 ¥ 15,452 $ 128,589

(34) (310) (12,424) 36,764 (17,775) (15,148) (126,055)

10,067 (908) 24,165 (2,441) 74,464 (20,593) (171,371)

6,131 14,148 9,410 56,288 131,349 118,060 982,444

16,673 16,087 43,024 40,059 43,764 29,457 245,135

¥37,999 ¥37,862 ¥117,546 ¥ 218,706 ¥ 334,736 ¥ 540,718 $4,499,617

11,005 13,961 49,471 70,895 184,230 194,865 1,621,584

10,967 13,894 48,067 63,625 177,263 188,034 1,564,737

¥ 69.56 ¥ 54.30 ¥ 575.96 ¥ 214.44 ¥ 109.66 ¥ 85.92 $ 0.71

69.12 53.85 567.68 208.30 108.05 85.61 0.71

185.03 232.39 798.17 1,013.89 1,502.54 1,591.09 13.24

5.00 5.00 6.00 7.00 10.00 10.00 0.08

28.9 36.7 40.9 29.1 53.0 34.8

46.1 26.0 111.4 23.8 9.3 5.6

10.6 8.5 44.4 7.9 4.0 2.3

1.52 1.16 0.89 0.64 0.26 0.16

394 538 1,148 2,105 2,322 3,986

29,752 30,009 30,225 63,162 118,385 118,589


The J Trust Group

Strategy

Managem

ent/CS

RFinancial &

Corp

orate Data

Financial Performance

Operating revenue

Net income

Operating income (loss)

(Billions of yen)

3/2008 3/2009 3/2010 3/2011 3/2012 3/2013 3/20153/2014

72

54

36

18

0

(Billions of yen)

18

12

6

0

−63/2008 3/2009 3/2010 3/2011 3/2012 3/2013 3/20153/2014

(Billions of yen)

40

30

20

10

03/2008 3/2009 3/2010 3/2011 3/2012 3/2013 3/20153/2014

63.2 billion yen

FY2008

FY2015

19.8 times

3.2 billion yen

–5.2 billion yen

FY2008

FY2015

23 million yen

10.1 billion yen

FY2008

FY2015

0.1 billion yen

We have been generating stable earnings for the past several years, but recorded an operating loss for fi scal 2015 as a result of signifi cant one-time expenses, including aggressive write-offs of NPLs, with an eye on future earnings growth.

In fi scal 2012 and 2015, we recorded a signifi cant amount of gain on bargain purchase as extraordinary income.


Cash and cash equivalents at end of period

Net assets

Total assets

(Billions of yen)

160

120

80

40

03/2008 3/2009 3/2010 3/2011 3/2012 3/2013 3/20153/2014

(Billions of yen)

600

450

300

150

03/2008 3/2009 3/2010 3/2011 3/2012 3/2013 3/20153/2014

(Billions of yen)

200

150

100

50

03/2008 3/2009 3/2010 3/2011 3/2012 3/2013 3/20153/2014

118.0 billion yen

FY2008

FY2015

40.8 times

2.8 billion yen

540.7 billion yen

FY2008

FY2015

44.4 times

12.1 billion yen

194.8 billion yen

FY2008

FY2015

29.7 times

6.5 billion yen

Eight-year Financial Summary


The J Trust Group

Strategy

Managem

ent/CS

RFinancial &

Corp

orate Data

With focus on banking businesses in South

Korea and Southeast Asia, utilizing Group

synergies in pursuit of continuous growth

Nobuyoshi FujisawaRepresentative Director, President & Chief Executive Officer

To Our Stakeholders

Strategy


Established business base for South Korea and Southeast Asia in fi scal 2015

Formulated Medium-Term Business Plan covering period to fi scal 2018

2015 Highlights

Financial business infrastructures in place in South Korea and Southeast AsiaThe J Trust Group has pursued proactive mergers and

acquisitions and business restructuring in fi nancial

businesses and in areas where high degrees of syn-

ergy with fi nancial businesses are anticipated, both in

Japan and overseas. During fi scal 2015, we concen-

trated on building an overseas business infrastructure

upon which to develop a comprehensive fi nancial

business, with a particular focus on South Korea.

Our major initiatives in fi scal 2015 were as follows:

In South Korea:

1. In August 2014, we merged the loan businesses of

three J Trust Group consumer fi nance companies in

South Korea with the Group’s Chinae Savings Bank

Co., Ltd. (currently JT Chinae Savings Bank Co.,

Ltd.; hereinafter “JT Chinae Savings Bank”).

2. In January 2015, we acquired all shares of Standard

Chartered Savings Bank Korea Co., Ltd. (currently

JT Savings Bank Co., Ltd.; hereinafter “JT Savings

Bank”).

3. In March 2015, we acquired all shares of Standard

Chartered Capital (Korea) Co., Ltd. (currently JT

Capital Co., Ltd.; hereinafter “JT Capital”).

In Southeast Asia:

1. In November 2014, we acquired 99.0% of the

shares of the Indonesian commercial bank PT

Bank Mutiara Tbk. (currently PT Bank JTrust

Indonesia Tbk.).

2. In March 2015, we concluded an agreement to

underwrite a convertible bond issued by Group

Lease PCL, which is listed on the Stock Exchange

of Thailand.

Medium-Term Business Plan for continuous growthHaving established a business foundation for continuous

growth with a focus on banking operations, the J Trust

Group has formulated a Medium-Term Business Plan

covering the period from fi scal 2016 to fi scal 2018. Under

this plan, we are targeting operating revenue of 142.1 bil-

lion yen, operating income of 21.7 billion yen, and ROE of

10.0% in fi scal 2018.

Going forward, we will work toward continuous profi t

growth driven by our banking businesses in South Korea

and Southeast Asia, and pursue business development

that will allow us to maximize synergies using the network

of our various business entities in Japan and overseas. At

the same time, we aim for further growth by dispatching

executives from Japan and utilizing the expertise we have

gained in Japan.

Next, I would like to explain our strategy for future

growth.


The J Trust Group

Strategy

Managem

ent/CS

RFinancial &

Corp

orate Data

FY2012 FY2013 FY2014 FY2015 FY2016(1st year)

FY2017(2nd year)

FY2018(3rd year)

FY2020(5th year)

FY2025(10th year)

80

50

40

30

20

10

0

-10

Operating Income (Forecast)

(Billions of yen)

Shifting from business expansion

led by M&A

To profit structure led by sustainable profit expansion from overseas banking business

Developing comprehensive fi nancial services in South KoreaDuring fi scal 2015, we established a structure in South

Korea that is expected to generate stable revenue and

profi t. This structure comprises a capital company

(installment loan and leasing company), savings banks,

and a receivable collection company.

In South Korea, capital companies are seen as more

trustworthy than savings banks, so we have posi-

tioned JT Capital as our fl agship company and will

work to attract quality customers. The two savings

banks (JT Chinae Savings Bank and JT Savings Bank)

constitute a top-class savings bank group in the

South Korean market, ranking No. 2 in number of

branches and No. 3 in terms of assets (as of

December 2014). Utilizing these strengths, we will

develop mass marketing across South Korea to

expand our customer base.

Concentrating on setting a course for a banking business in Southeast AsiaJ Trust acquired the failed Indonesian bank PT Bank

Mutiara Tbk. (currently PT Bank JTrust Indonesia Tbk.;

hereinafter “Bank JTrust Indonesia”) in November

2014, making it a subsidiary. Bank JTrust Indonesia,

with its main branch in Jakarta, had capital of 10.8

trillion rupiah (approximately 104.8 billion yen) as of

March 2015, and a sales network of 61 branches

across Indonesia.

Because Bank JTrust Indonesia had undergone a

long business revitalization process under the super-

vision of Indonesia Deposit Insurance Corporation,

it was unable to engage in proactive lending and

deposit-taking, and its marketing effi ciency had weak-

ened relative to other banks. Nevertheless, we are

shoring up these weak points so that Bank JTrust

Indonesia will develop normal banking operations,

and a major improvement in earnings is expected.

In addition to dispatching highly experienced execu-

tives, we changed the bank’s trade name to Bank

JTrust Indonesia to enhance the value of the J Trust

brand. During fi scal 2016, we are working toward the

bank’s revitalization by reducing the ratio of NPLs and

improving its fi nancial health, and building a marketing

platform with the collection of NPLs as a source of

earnings to generate profi t from fi scal 2017.

Going forward, we intend to look beyond the

Indonesian domestic market and develop businesses

with high degrees of synergy with banking, including

property-based loans, leasing, and insurance, for the

Southeast Asia region, where both population growth

and economic growth are expected.

We are also exploring the opportunities to develop

fi nancial and real estate businesses in Southeast Asia

through acquisitions of listed companies in Singapore

via JTRUST ASIA.

M&A Others Additional profit

Domestic financial business

Stable profit

Financial business in Southeast AsiaFinancial business in South Korea

Sustainable growth




M&A Others


To Our Stakeholders

In Japan, exiting unsecured loan business to focus on credit guarantees for property-based loans During the fi rst quarter of fi scal 2016, we carried out a

major restructuring of our domestic fi nancial business

that included a large-scale elective retirement program

and the consolidation of offi ces.

Going forward, we intend to build on this restructur-

ing by shifting the focus of our business to credit

guarantees for property-based loans, and completely

withdrawing from the unsecured loan business in

Japan. We are already engaged in credit guarantees

for property-based loans for customers in Japan, and

going forward, we will also provide guarantees for

overseas customers investing in Japanese real estate.

Meeting stakeholders’ expectations, and working together for the futureThe J Trust Group considers returns to shareholders

to be one of the most important management issues,

and our policy is to proactively return profi t to share-

holders. We have also allocated up to 7.5 billion yen

for the buyback of our own shares, so that we are

able to proactively acquire shares when the stock is

deemed undervalued.

Going forward, the J Trust Group will position its

domestic business as a source of stable cash fl ow,

while continuing to expand its banking and peripheral

businesses in Asia, where growth is anticipated. We

will also engage in proactive investor relations activities

to facilitate communication with shareholders and

investors and build relationships of trust.

All J Trust Group employees are working together to

achieve the targets set in the Medium-Term Business

Plan, and by doing so, we aim to meet the expecta-

tions of shareholders and investors. I ask for your

continued understanding and support.

Nobuyoshi Fujisawa

Representative Director,

President & Chief Executive Offi cer


The J Trust Group

Strategy

Managem

ent/CS

RFinancial &

Corp

orate Data

With a foothold in the financial business, the J Trust Group is

aiming for further growth.

The leaders of our financial businesses in South Korea,

Southeast Asia, and Japan discuss the characteristics of their

respective markets and business strategies for the achievement

of the Medium-Term Business Plan.

J Trust Co., Ltd. Annual Report 20151818 J Trust Co., Ltd. Annual Report 2015


South Korea’s financial industry is undergoing a realignment. The J Trust Group is organically integrating its savings bank, installment loan and leasing, and receivable collection businesses to develop comprehen-sive financial services for the entire South Korean market.


The potential customer base in Indonesia is growing in line with the country’s economic development. Centered on Bank JTrust Indonesia, we are offering diverse financial services in Southeast Asia, a region experiencing remarkable economic growth.


In Japan, we are focusing on businesses where we can utilize our unique strengths, namely credit guarantees for property-based loans and the receivable collection business. With the unsecured loan market contracting, we are withdrawing from that business.

TheIndocouCenare Sourem

Nobuiku ChibaRepresentative Director, Senior Managing Executive Officer in charge of financial business in South Korea

Shigeyoshi AsanoDirector, Managing Executive Officer in charge of business in Southeast Asia

Toru MyochinDirector, Managing Executive Officer in charge of domestic financial business

Non-fi nancial businessWe are conducting a general entertainment business and a real estate business.

J Trust Co., Ltd. Annual Report 2015 1919J Trust Co., Ltd. Annual Report 2015


BANKINGAND MORE

We are organically integrating our capital company, savings banks,

and receivable collection company to provide comprehensive

financial services for the entire South Korean market.

523152355231523152315231523152523152315231252315231523331352352352313152352312223352315233355523523523235233315231555232355552222355223335231552 15523155 352355525233555523552325233312335522523333155235235

Infrastructure for comprehensive fi nancial services in place

Seeking to become the No. 1 savings bank, with a focus on quality customers

Nobuiku ChibaRepresentative Director, Senior Managing Executive Officer in charge of financial business in South Korea


Market Data

Market

Financial industry undergoing realignmentOver a recent four-year period, the maximum loan interest rate under South Korea’s Money Lending Business Act was lowered by 14.1 percentage points, from 49.0% to 44.0% in July 2010, to 39.0% in June 2011, and to 34.9% in April 2014. These reductions placed signifi cant pressure on the operations of savings banks and fi nancial companies, leading to savings banks and various fi nancial companies selling receivables, and in some cases the sales of savings banks and fi nancial companies themselves.

Strategy

Strengthening our business infrastructure for comprehensive financial servicesTaking advantage of this realignment in South Korea’s fi nancial industry, the J Trust Group leveraged its exper-tise in mergers, acquisitions and receivable collection in Japan to broaden its business foundation in South Korea through fi scal 2015. Going forward, we will organically integrate our capital company, savings banks, and receiv-able collection company to provide comprehensive fi nancial services. Leveraging our expertise developed in Japan, JT Chinae Savings Bank, which commenced operations in 2012, reduced its NPL ratio to below 3%, and utilizing our collection expertise as well cut the delinquency rate, which had been as high as 50%, to 12%. In terms of

new services, we developed more than 10 types of new products, including the industry’s fi rst automatic wire transfer system through smartphone application, daily installment loans, and “super refi nance loans.” We also acquired JT Savings Bank in January 2015. Adding JT Savings Bank’s four branches to JT Chinae Savings Bank’s 15 branches brought the number of branches to 19, placing the J Trust Group in the top tier of South Korean savings banks. Going forward, we will propose competitive fi nancing conditions underpinned by our

Prior to October 2007

From October 2007 till July 2010

From July 2010

till June 2011

From June 2011

till March 2014

As of April 2014

70

60

50

40

30

20

10

0

66.0% or less

49.0% or less

44.0% or less

39.0% or less 34.9%

or less

Declining

Change in Maximum Lending Interest Rate Overview of the Group’s Financial Business in South Korea

Strategic Positioning of JT Chinae Savings Bank and JT Savings Bank

(%)

J Trust Group in

South Korea

New loan

Purchase receivables

Savings bank business

Specialized credit fi nancial business

Receivable collection business

High

HighLowLo

w

Default rate

Rat

io o

f int

eres

t in

com

e (v

s. o

per

atin

g re

venu

e)

Target of JT Chinae Savings Bank

and JT Savings BankJT Chinae

Savings Bank

Savings Bank B

Savings Bank C

Savings Bank A

JT Savings Bank


The J Trust Group

Strategy

Managem

ent/CS

RFinancial &

Corp

orate Data

superior products and capabilities in collection and credit screening, to win quality customers with the aim of becoming South Korea’s No. 1 savings bank. We also acquired JT Capital in March 2015. As capital companies are regarded as more credible than savings banks, JT Capital’s role will be to attract quality custom-ers with a credit rating of 1 to 4 (on a scale of 1 to 10, with 1 being the highest). The receivable collection company TA Asset Management is aiming for growth in revenues based on its collection capabilities, which are in the top tier of the market, its strength in pricing, and a compliance structure that is on a par with banks.

Targets

Aiming for operating revenue of 63.2 billion yen and operating income of 8.3 billion yen in fiscal 2018By maximizing Group synergies and expanding our com-prehensive fi nancial services, the fi nancial business in South Korea is targeting operating revenue of 63.2 billion yen and operating income of 8.3 billion yen in fi scal 2018.

Loan Balance and Delinquency Rate of JT Chinae Savings Bank

Three-year Targets for Financial Business in South Korea(Billions of yen)

3/2016(Forecast)

3/2017(Forecast)

3/2018(Forecast)

30.0

28.3

1.7 59.0

4.2

40.8

63.2

2.5

5.5

8.3

38.0

2.8

Operating revenue (savings banks and capital company)

Operating revenue (receivable collection)


(Billions of won) (%)

20134 5 6 7 8 9 10 11 12 10 11 12

20141 2 3

20151 2 34 5 6 4 5 67 8 9

1,200

1,000

800

600

400

200

0

60

50

40

30

20

10

0

482.6 457.2

582.8 555.3 535.4 519.0 514.7 514.3 514.9 513.5 501.6

475.3 483.5 477.0 426.0 444.9

700.3 683.5 701.6 705.2 715.4 734.2 744.3

1,089.6 1,087.9 1,066.7 1,047.8

14.9 20.1 21.0 23.9 29.3 38.0 52.3 70.6 91.8 102.5 105.3 109.8 132.1 142.7 158.6 189.6 206.9 227.0

262.9 281.6 325.0

357.0 382.3

412.3 463.5

487.4 519.5

Steady growth in new loan balance

New loan balance (left axis)

*Loan balance includes purchased loan receivable

Loan balance* (left axis) Ratio of loans delinquent for 30 days or longer (right axis)

Operating income


COLUMN

Promoting the JT Chinae Savings Bank brandJT Chinae Savings Bank has been using taxis as a new advertising medium, a fi rst for a savings bank in South Korea. The advertisement is on roughly 2,000 taxis operating in Seoul to promote the JT Chinae Savings Bank brand.

Highly Experienced Management Team in Financial Business in South Korea

Yoon Byeng MukPresident & Representative DirectorJT Chinae Savings Bank Co., Ltd.

Experienced manager with background in major departments at Bank of Korea and various finance-related companies

Choi SungwookPresident & Representative DirectorJT Savings Bank Co., Ltd.

Experienced manager with background at savings bank and financing company

Chong-Ho YoonCEOJT Capital Co., Ltd.

Experienced manager with background at credit card company, bank, and capital company

Kazuyuki MatsuokaPresident & Representative DirectorTA Asset Management LLC.

Experienced manager with background at financing company and savings bank in Japan and South Korea


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Acquisition of 99.997% of the shares of Bank Mutiara (currently Bank JTrust Indonesia) gave us a “platinum ticket” to operate a banking business in Indonesia

Sent management team from Japan to rebuild Bank JTrust Indonesia

Aiming to expand the business in Indonesia, with a population of 250 million and 80 million potential customers

(Left)

Nobiru AdachiDirector, Senior Managing Executive Officer in charge of banking business in Indonesia

(Right)

Shigeyoshi AsanoDirector, Managing Executive Officer in charge of business in Southeast Asia

BANKINGAND MORE

Financial business in Southeast AsiaWe are revitalizing Bank JTrust Indonesia to offer diverse financial

services in Southeast Asia, a region experiencing remarkable

economic growth.


Market Data

Market

Potential customer base for financial services growing in line with economic developmentWith a population of 250 million people, Indonesia is the world’s fourth most populous country, and the economy continues to grow, with average annual GDP growth above 6%. Roughly half of the population is under the age of 28, and the middle class is expected to grow going forward. Only approximately 40% of the country’s 250 million people have bank accounts, and we estimate that economic development will create 80 million potential customers. Although economic development in Indonesia and the rest of Southeast Asia is expected to lead to demand for retail fi nance, fi nancing mechanisms and products are still undeveloped. Moreover, the loan balance in Indonesia is expected to grow by more than 20% annually.

Strategy 1

Aiming to rebuild Bank JTrust Indonesia and grow the businessIn November 2014, the J Trust Group acquired shares of the failed PT Bank Mutiara Tbk. (currently Bank JTrust Indonesia) from the Indonesia Deposit Insurance Corporation, Lembaga Penjamin Simpanan (“LPS”), making the bank a Group subsidiary. Indonesian banking regulations normally restrict foreign ownership of banks to 40%, but J Trust was able to acquire up to 100% of the bank’s shares because of a

special exception under which this restriction is waived for 20 years from the time of acquisition for banks receiv-ing emergency assistance from LPS. This development gave J Trust a “platinum ticket” to engage in banking operations in Indonesia despite the country’s increasingly strict regulations on foreign ownership. Bank JTrust Indonesia still has a large amount of NPLs disbursed prior to receiving emergency assistance from LPS, and this has resulted in low operational effi ciency with the average balance of loans and deposits per branch amounting to roughly half the amount of competi-tors. A heavy reliance on sizable customers meant that the average deposit interest rate was high. The fact that it had once failed also tarnished the bank’s image. The J Trust Group sent a highly experienced management team to Bank JTrust Indonesia, supervising local

Target Customer Base for Bank JTrust Indonesia Total Loan Balance in Indonesia

Total population in Indonesia: around 250 million (as of 2013)

Potential customers Approx. 80 million

40% already have bank accounts: Approx. 100 million Total deposit amount: 904 trillion rupiah

15 years and older: 72%Approx. 180 million

Potential customers: 80 million Focus on this sector in marketing

Source: Data BI April 2012, Data Badan Pusat Statistik (Sensus Penduduk 2010) and Data Lembaga Penjaminan Simpanan April 2012 Source: Annual Report of Bank Indonesia

2009 2010 2011 2012 2013 2014(est.)

2015(est.)

2016(est.)

2017(est.)

2018(est.)

10,000

8,000

6,000

4,000

2,000

0

CAGR2009–2013:23.0%

1,4381,766

2,2002,708

3,2933,579

4,330

5,240

6,340

7,671

CAGR (forecast)2014–2018:21.0%

(Trillions of IDR)


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management with the aim of improving the fi nancial health of the bank and growing the balance of operating assets. This focus is leading to business growth as well as an improvement in brand value.

Strategy 2

Offering products that are attractive to potential customers, through a variety of channelsIn Indonesia, we are focusing on developing attractive products for potential customers by integrating our retail fi nance expertise developed in Japan with local fi nancial expertise. We are developing comprehensive fi nancial products including car loans, mortgages and other types of loans, card services, and foreign exchange, to address the rapid growth of small and medium-sized companies and the increase in the number of salaried employees. Furthermore, we are looking to establish a framework for customer referrals from Bank Mayapada International Tbk PT, an Indonesian commercial bank in which we acquired a 10% shareholding in December 2013. In addition to distributing these products via the Bank JTrust Indonesia network, we are promoting wholesale fi nancing to multi-fi nance companies. We are also pursuing tie-ups with multi-fi nance companies utilizing the expertise developed in our credit guarantee business in Japan. In Southeast Asia, we are beginning to invest in the hire-purchase fi nancing business in areas where popula-tion and economic growth are expected while working to generate synergies through Bank JTrust Indonesia’s fi nancial support. As part of this effort, in March 2015, we concluded an agreement to underwrite a convertible bond issued by Group Lease PCL (hereinafter, GL) in Thailand. GL conducts motorcycle hire-purchase fi nanc-ing businesses in Thailand and Cambodia, and going forward it plans to enter the same business in Laos as well. We will pursue such synergies with GL.

Targets

Aiming for operating revenue of 30.3 billion yen and operating income of 5.3 billion yen in fiscal 2018With a focus on banking operations in Indonesia, the fi nancial business in Southeast Asia is targeting operating revenue of 30.3 billion yen and operating income of 5.3 billion yen in fi scal 2018.


Three-year Targets for Financial Business in Southeast Asia (Billions of yen)

3/2016(Forecast)

3/2017(Forecast)

3/2018(Forecast)

12.0

1.5

3.2

5.322.9

30.3

Operating revenue Operating income

Strategic Positioning of Bank JTrust Indonesia

Medium/large corporation

Ratio of fee income (vs. operating revenue)

Individual/medium/small business

Our target

Bank JTrust Indonesia

Bank B

Bank C

Bank A

Bank D


Ahmad FajarPresident Director

25-year veteran of the banking industry

Felix Istyono HartadiDirector

25-year veteran of the banking industry

Nobiru AdachiPresident Commissioner

26-year veteran of Japan’s Ministry of Finance

Koh Yong GuanIndependent Commissioner

43-year veteran of various strategic positions in the Singapore government

Benny LuhurIndependent Commissioner

6-year veteran of the manufacturing industry and 27-year veteran of the plantation and forestry industries

Ritsuo AndoDirector

36-year veteran of the banking and financial industries

Highly Experienced Management Team at Bank JTrust Indonesia

FOCUS

With local expertise in the banking and fi nancial industries, Ritsuo Ando became director in December 2015.

Mr. Ando won The Best CEO in Leadership in Indonesian Banking Awards 2013.1

Career Highlights of Ritsuo Ando

1979 Joined Daiwa Bank (currently Resona Bank)1989 Bank Perdania (Daiwa Bank’s local subsidiary in Indonesia), currently PT Bank Resona Perdania (Indonesia)1996 Chief of Indonesia Department, International Division, Daiwa Bank2001 President Director, PT Daiwa Lippo Finance (currently PT Resona Indonesia Finance) 2008 Vice President Director, PT Bank Nusantara Parahyangan, Tbk2

2009 President Director, PT Bank Nusantara Parahyangan, Tbk2013 Won The Best CEO in Leadership in Indonesian Banking Awards 20132015 Director, PT Bank JTrust Indonesia, Tbk3

1 1st winner ofThe Best CEOin Leadershipin Indonesian Banking Awards 2013

2 A medium-sized bank in Indonesia

3 December 2015


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CONCENTRATING OUR FOCUS

Signifi cant downsizing of unsecured loan business

Credit guarantee business focusing on credit guarantees for property-based loans

Servicer business growing, backed by top-tier collection capabilities

Toru MyochinDirector, Managing Executive Officer in charge of domestic financial business

Domestic fi nancial businessWith the market contracting, we are withdrawing from the

unsecured loan business and concentrating on credit guarantees

for property-based loans and servicer businesses.


Market Data

Unsecured loan business

Withdrawing from unsecured loan businessWith the market in Japan contracting, we are signifi cantly downsizing our unsecured loan business. To avoid the risk of contingent liabilities emerging and to increase our corporate value, we will completely detach liabilities with risk of interest repayment claims.

Credit guarantee business

Expanding credit guarantee for property-based loan business, where we are able to demonstrate our strengthsUtilizing the expertise in the credit guarantee business we have developed to date, we are concentrating on the credit guarantee for property-based loan business. The Group’s strengths in this business lie in the ability to develop products tailored to market needs, and in our proprietary credit screening of property-based loans. We currently have contracts with 20 large and medium-sized home manufacturers as of May 2015, and we plan to increase this to 60 over the next three years.

Servicer business

Aiming to grow the business, backed by our strong collection capabilitiesThe servicer (receivable collection) industry is a sector in which only incorporated companies approved by the Ministry of Justice may operate, and requires thorough compliance with strict regulations. The overall market trend today is one of contraction, but the J Trust Group’s servicer business is underpinned by its top-tier collection capabilities, derived from the combined expertise of staff who previously worked for a diverse range of

companies. We aim to grow the business through high pricing, backed by our collection capabilities.

Targets

Aiming for operating revenue of 11.5 billion yen and operating income of 4.4 billion yen in fiscal 2018The domestic fi nancial business is targeting operating revenue of 11.5 billion yen and operating income of 4.4 billion yen in fi scal 2018, by downsizing the unsecured loan business while expanding the credit guarantee for property-based loans and servicer businesses. Rather than seeking high growth, we are positioning the servicer business as a core business that generates stable profi ts for the Group.

Credit Guarantee Balance Principal Balance

3/2016(Forecast)

3/2017(Forecast)

3/2018(Forecast)

11.1

3.2

4.0

4.4

11.1 11.5

3.8

6.7

0.6

4.1

6.3

0.7

4.7

6.2

0.6

* Figures in credit guarantee business include figures of financial business and business to collect off-balance receivable at Nihon Hoshou.

3/2015 3/2016(Forecast)

3/2017(Forecast)

3/2018(Forecast)

120

100

80

60

40

20

0

CAGR2015–2018:40.1%

36.5

48.7

75.6

100.3

12.3

36.2

60.1

0.53/2015 3/2016

(Forecast)3/2017

(Forecast)3/2018

(Forecast)

600

400

200

0

347.8384.1

440.9

500.8CAGR2015–2018:12.9%

(Billions of yen) (Billions of yen)

Credit guarantee for rental housing loan Credit guarantee balance

Three-year Targets for Domestic Financial Business (Billions of yen)

Operating revenue (Credit guarantee business*)

Operating revenue (Receivable collection business)

Operating revenue (Credit card business)

Operating income


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General entertainment business

The J Trust Group’s amusement business operates amusement arcades and manufactures and sells prizes for game machines. Going forward, however, we aim to develop a general entertainment business that uses things like animation content. The general enter-tainment business is targeting sales of 14.8 billion yen and operating income of 1.1 billion yen in fi scal 2018.

Real estate business

In Japan, we are working to increase the number of ready-built homes sold and raise the ratio of in-house construction, as well as to increase the number of orders for commercial facility construction. We are also aiming to conduct a real estate business in Southeast Asia that leverages our Group’s business foundation. The real estate business is targeting sales of 8.0 billion yen and operating income of 0.7 billion yen in fi scal 2018.

3/2016(Forecast)

3/2017(Forecast)

3/2018(Forecast)

15.0

1.1 1.1 1.1

14.9 14.8

3/2016(Forecast)

3/2017(Forecast)

3/2018(Forecast)

6.5

0.5

0.6

0.77.18.0

Sales

Sales

Operating income

Operating income

Three-year Targets for General Entertainment Business(Billions of yen)

Three-year Targets for Real Estate Business (Billions of yen)

Amusement business shifting to general entertainment

Real estate business aiming to operate in Southeast Asia

Non-fi nancial businessWe will provide services that utilize Group

synergies in amusement and real estate

services.


32 Directors and Audit & Supervisory Board Members

34 Corporate Governance

38 Risk Management

39 Messages from Outside Executives

40 The J Trust Group’s CSR Activities

Management/CSR


B

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Directors and Audit & Supervisory Board MembersAs of October 15, 2015

Nobuyoshi FujisawaRepresentative Director, President & Chief Executive Offi cer

Jun 2008 Representative Director & Chairman, J Trust Co., Ltd.

Jun 2011 President & CEO, J Trust Co., Ltd.Oct 2013 Managing Director & CEO,

JTRUST ASIA PTE. LTD. [incumbent]Mar 2015 Director & Chairman,

JT Capital Co., Ltd. [incumbent]Jun 2015 Representative Director, President & CEO,

J Trust Co., Ltd. [incumbent] Director, ADORES, Inc. [incumbent] President Commissioner, PT JTRUST

INVESTMENTS INDONESIA [incumbent]

A Nobiru AdachiDirector & Senior Managing Executive Offi cer

Apr 1980 Joined Ministry of FinanceJun 2005 Director-General, Hakodate CustomsJun 2013 Managing Director, J Trust Co., Ltd.Jun 2014 Representative Director and Senior

Managing Director in charge of Corporate Management Department, J Trust Co., Ltd.

Dec 2014 President Commissioner, PT Bank Mutiara Tbk. (currently PT Bank JTrust Indonesia Tbk.) [incumbent]

Jun 2015 Representative Director, Senior Managing Executive Offi cer, J Trust Co., Ltd.

Oct 2015 Director, Senior Managing Executive Offi cer in charge of banking business in Indonesia and promotion of global banking business, J Trust Co., Ltd. [incumbent]

CNobuiku ChibaRepresentative Director & Senior Managing Executive Offi cer

Jun 2010 President & Representative Director, J Trust Co., Ltd.

Jun 2011 Vice President & Director, J Trust Co., Ltd.Aug 2012 Director, Chinae Co., Ltd.

(currently JT Chinae Savings Bank Co., Ltd.) [incumbent]

Oct 2012 Director, J Trust Co., Ltd.Mar 2015 Representative Director & Vice President,

JT Capital Co., Ltd. [incumbent]Jun 2015 Representative Director, Senior Managing

Executive Offi cer in charge of fi nancial business in South Korea and Public Relations & Investor Relations Division of Corporate Planning Department, J Trust Co., Ltd. [incumbent]

B

Shigeyoshi AsanoDirector & Managing Executive Offi cer

Jan 2012 Joined J Trust Co., Ltd. as General Manager of President’s Offi ce

Oct 2013 Director, JTRUST ASIA PTE. LTD. [incumbent]Sep 2014 Executive Director, LCD Global Investments LTD.Jun 2015 Director, Managing Executive Offi cer in charge of

business in Southeast Asia and Planning Division of Corporate Planning Department, J Trust Co., Ltd. [incumbent]

Commissioner, PT JTRUST INVESTMENTS INDONESIA [incumbent]

D Toru MyochinDirector & Managing Executive Offi cer

Apr 1988 Joined the Dai-Ichi Kangyo Bank, Ltd. (currently Mizuho Financial Group Inc.)Jul 2010 Joined Shinsei Bank, LimitedApr 2012 Executive Offi cer, General Manager of Corporate Banking Business Division I and

General Manager of Healthcare Finance Division, Shinsei Bank, LimitedApr 2013 Managing Executive Offi cer, Executive Offi cer in charge of Institutional Business &

General Manager, Healthcare Finance Division, Shinsei Bank, LimitedJun 2015 Director, Managing Executive Offi cer in charge of domestic fi nancial business,

J Trust Co., Ltd. [incumbent]

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F G H

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Masao OnishiFull-Time Audit & Supervisory Board Member

Apr 1972 Joined Fukutoku Sogo Bank, Ltd.Feb 2001 Joined J Trust Co., Ltd.Jun 2009 Full-Time Audit & Supervisory Board Member, J Trust Co., Ltd.

[incumbent]Dec 2010 Outside Audit & Supervisory Board Member, Lopro Corporation

(currently Nihon Hoshou Co., Ltd.) Mar 2014 Audit & Supervisory Board Member, NUCS Co., Ltd. [incumbent]Jan 2015 Audit & Supervisory Board Member, J TRUST Card Co., Ltd.

[incumbent]

I

Takaaki KojimaAudit & Supervisory Board Member Outside

Apr 1971 Joined Ministry of Foreign AffairsApr 2002 Director-General, Intelligence and Analysis Bureau, Ministry of

Foreign Affairs Jul 2004 Ambassador Extraordinary and Plenipotentiary of Japan to Republic

of Singapore Sep 2007 Ambassador Extraordinary and Plenipotentiary of Japan to Australia Apr 2013 Advisor, Libera Corporation [incumbent]Jun 2015 Audit & Supervisory Board Member, J Trust Co., Ltd. [incumbent]

Masato InoueAudit & Supervisory Board Member

Apr 1973 Joined Nomura Securities Co., Ltd.Jul 2003 President and Representative Director, Tosho Computer Systems

Co., Ltd.Jul 2007 Established Inoue Offi ce [incumbent]Jan 2009 Director & Chairman, Hitachi Housetec Inc. (currently Housetec Inc.)Jun 2012 Audit & Supervisory Board Member, J Trust Co., Ltd. [incumbent]

K

L

Hideki YamaneFull-Time Audit & Supervisory Board Member Outside

Apr 1976 Joined Yamaguchi Sogo Bank, Ltd. (currently THE SAIKYO BANK, LTD.)

Jun 2007 Full-Time Auditor, THE SAIKYO BANK, LTD.Jun 2011 Advisor, THE SAIKYO BANK, LTD. (Compliance Control Dept.)Jun 2012 Full-Time Audit & Supervisory Board Member, J Trust Co., Ltd.

[incumbent]Jun 2013 Audit & Supervisory Board Member, Partir Servicer Co., Ltd.

[incumbent]

J

Norio IgarashiDirector Outside

Apr 1966 Joined Tokyo District Public Prosecutors Offi ce as a prosecutor

Jan 1991 Chief, Special Investigation Department, Tokyo District Public Prosecutors Offi ce

Jul 1993 Prosecutor, Supreme Public Prosecutors Offi ceMay 2010 Visiting Attorney, Yamada Ozaki Law Offi ce

[incumbent]Jun 2014 Outside Director, J Trust Co., Ltd. [incumbent]

F

Ryuji MizutaDirector Outside

Apr 1974 Joined National Police AgencyJul 1994 Miyazaki Prefectural Police ChiefAug 2000 Director of Division 1, Public Security

Intelligence AgencyJul 2012 Advisor, Sumitomo Life Insurance Company

[incumbent]Jun 2014 Outside Director, J Trust Co., Ltd. [incumbent]

G

Masanori KanekoDirector Outside

Apr 1978 Joined Yamaguchi Sogo Bank, Ltd. (currently THE SAIKYO BANK, LTD.)

Jun 2008 Head of Audit Department, THE SAIKYO BANK, LTD.

Apr 2010 Chief of Audit & Supervisory Board, THE SAIKYO BANK, LTD.

Jun 2011 Full-Time Audit & Supervisory Board Member, THE SAIKYO BANK, LTD.

Jun 2015 Outside Director, J Trust Co., Ltd. [incumbent] Advisor, THE SAIKYO BANK, LTD. [incumbent]

H


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Corporate Governance

The J Trust Group pledges to work together with the community as it contributes to the development of

a sustainable future. Toward this end, we will make every effort to maximize our corporate value and earn

the trust, credibility and support of our customers and shareholders. As part of this commitment, we

have strengthened our corporate governance structure to ensure effective internal controls and audit

procedures and to facilitate swift decision making, as we strive to conduct business in compliance with

ethical standards, laws and regulations. To realize these goals, we have established a Code of Ethics, set

forth by the following fi ve principles, to further ensure timely decision making and sound and transparent

management practices.

Corporate Governance Structure

n Board of DirectorsTo ensure appropriate and swift decision making, the Company has established an eight-member Board of Directors (three of whom are outside directors, as of June 29, 2015). The Board is the supreme decision- making body of the Company and is also responsible for overseeing and supervising corporate management. The Board holds regular monthly meetings in accordance with the Rules & Regulations of the Board of Directors as well as ad hoc meetings, as needed, to discuss important matters related to corporate management, to oversee business performance and to monitor the status of operational execution.

n Audit & Supervisory BoardThe Audit & Supervisory Board is composed of four members (as of June 29, 2015), two of whom are outside Audit & Supervisory Board Members. Bills are proposed to the Audit & Supervisory Board before regular Board of Directors’ meetings so that their necessity and legitimacy, among other requirements, may be discussed by the Audit & Supervisory Board at its meetings, which are held immediately prior to Board of Directors’ meetings. In addition, the Audit & Supervisory Board makes

Aiming to Become the Most Trusted Company in Japan

Code of Ethics1. The Company shall acknowledge its social responsibility and public mission, conduct sound business operations

as a listed company, ensure transparency in its business activities, and aim to grow into a trusted company.

2. Not only shall the Company comply with the letter of the law, it shall embrace the spirit in which it was written in its efforts to achieve a fair and more affl uent society for future generations.

3. The Company shall respect the rights of all stakeholders, contribute to the growth and development of society and economy, and honor and respect the differences in cultures and customs.

4. When faced with a confl ict of interest, the Company shall choose an ethical solution without fail and stand resolutely against any and all criminal elements.

5. When faced with a diffi cult ethical decision, the Company shall resolve to ensure a satisfactory outcome for all parties involved in the matter.

inquiries at Board of Directors’ meetings to ensure that transparency of the Board of Directors is maintained.

n Advisory BoardThe Company has an Advisory Board that acts as a consultative body to the representative directors. The Advisory Board is composed of outside experts who offer opinions and advice from a variety of perspectives, to help develop strategies designed to increase corporate value. Members of the Advisory Board also lend their specialist knowledge and know-how to help further enhance compliance, to steer the Company away from criminal elements, and to improve the overall quality of corporate governance.

n Management MeetingAs an organization that carefully examines issues pertaining to the Group’s overall corporate strategy, the Company has established a Management Meeting, composed of executives from the Company and its subsidiaries. The Management Meeting is held every month and provides an opportunity for directors to thoroughly address a variety of issues concerning fi nancial performance and execution of duties for each department.


n Corporate Governance Structure (As of June 29, 2015)

Board of Directors

Shareholders’ Meeting

Accounting Auditors

Audit & Supervisory

Board

Advisory Board

Outside Counsel

Head Offi ce, Branches & Subsidiaries

Compliance & Risk Management Committee

Compliance Supervisor

Compliance Report & Consultation Desk

Management Meeting

President

Internal Audit Team

n In-house CommitteesCross-organizational in-house committees of various kinds exist to strengthen the Group’s internal control and risk management functions.

Compliance & Risk Management CommitteeThe Compliance & Risk Management Committee meets, in principle, once every quarter. Composed mainly of directors and Audit & Supervisory Board Members, the Committee has established a system that requires each and every employee to always faithfully observe laws and regulations. The Committee also carries out enlightenment activities.

Information System CommitteeThe Information System Committee holds a monthly meeting for the purpose of enhancing an IT system based on its Information System Basic Policy, developing a companywide system to manage information security, and improving the risk assessment structure and information security management structure.

n Outside Directors and Outside Audit & Supervisory Board Members

The Company has appointed three outside directors and two outside Audit & Supervisory Board Members. Norio Igarashi, an outside director, is a visiting attorney at Yamada Ozaki Law Offi ce, which has no special rela-tionship with the Company. From April 1, 2011 to the day he left the Advisory Board to assume the offi ce of outside director, Mr. Igarashi provided practical advice as a mem-ber of the Advisory Board, a consultative body to the Company’s representative directors. Ryuji Mizuta, an outside director, and Takaaki Kojima, an outside Audit & Supervisory Board Member, have no personal, capital or business relationship with the Group. Masanori Kaneko, an outside director, is an advisor of THE SAIKYO BANK, LTD. (hereinafter, “SAIKYO BANK”) and Hideki Yamane, an outside Audit & Supervisory Board Member, was employed at the same bank. Between the Company (the Group) and SAIKYO BANK, there is a capi-tal relationship in which SAIKYO BANK holds 2,890,000 shares of the Company’s common stock, a personal rela-tionship in which the Group’s employees are seconded to SAIKYO BANK, and a business relationship in which the Group acts as a guarantor for unsecured consumer fi nance products, property-based loans, and rental housing loans provided by SAIKYO BANK.


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The Company benefi ts from their professional knowledge and useful suggestions and opinions on the management of the Company from an objective perspec-tive as outside experts. Their responsibility includes attendance at meetings, both ordinary and extraordinary, of the Audit & Supervisory Board and the Board of Directors, to consult with directors and employees for clarifi cation on various issues, when necessary. Although the Company has not explicitly defi ned policy or criteria for independence to appoint outside Audit & Supervisory Board Members or outside directors, judgment on appointment is made on the assumption that an adequate level of independence is ensured for

execution of duties as outside experts independent from the Company’s executives, taking career history and relationship with the Company into consideration. Outside directors (Norio Igarashi, Ryuji Mizuta and Masanori Kaneko) are appointed as independent directors who have no confl icts of interest with general shareholders. Although the Company has no dedicated staff to assist the outside executives, the Corporate Management Department is in charge of the scheduling and notifi cation of the Board of Directors’ meeting. The Department also provides advance explanation of the meeting as needed so that all concerned parties understand its purpose.

Title Name Main activities Attendance at meetings

Director Norio Igarashi He expressed opinions and offered suggestions based on his abundant knowledge and experience as an attorney.

He attended 18 out of 20 Board of Directors’ meetings (attendance rate: 90.0%).

Director Ryuji Mizuta He expressed opinions and offered suggestions based on his abundant knowledge and experience at the National Police Agency.


Director Kazuharu Anno He expressed opinions and offered suggestions based on his abundant knowledge and experience as an executive at fi nancial institutions.


Audit & Supervisory Board Member

Hideki Yamane He expressed opinions and offered suggestions based on his abundant knowledge and experience as an executive at fi nancial institutions.

He attended 25 out of 26 Board of Directors’ meetings (attendance rate: 96.2%) and 13 out of 14 Audit & Supervisory Board meetings (attendance rate: 92.9%).

Audit & Supervisory Board Member

Kinya Naito He expressed opinions and offered suggestions based on his abundant knowledge and experience as an attorney.

He attended 17 out of 26 Board of Directors’ meetings (attendance rate: 65.4%) and 14 out of 14 Audit & Supervisory Board meetings (attendance rate: 100%).

Note: Descriptions concerning Messrs. Norio Igarashi, Ryuji Mizuta and Kazuharu Anno relate to their activities since their appointments on June 26, 2014.

n Main Activities of Outside Executives for Fiscal 2015

Classifi cation of executivesTotal amount of

remuneration, etc. (Millions of yen)

Total amount of remuneration, etc., by category(Millions of yen)

Number of corresponding

executives Base salary Stock options Bonus Retirement benefi ts

Directors (excluding outside directors) 158 108 50 — — 9

Audit & Supervisory Board Members(excluding outside Audit & Supervisory Board Members)

12 12 — — — 2

Outside executives 31 30 1 — — 6

Total 203 151 51 — — 17

Notes: 1. Amount of remuneration of directors does not include remuneration as employees (with regard to directors who concurrently serve as employees). 2. Amount of remuneration of directors includes remuneration of fi ve directors who ended their tenure on June 26, 2014.

n Remuneration of Directors and Audit & Supervisory Board Members for Fiscal 2015Total amount of remuneration, etc., per classifi cation of executives, total amount of remuneration, etc., by category, and number of executives for such remuneration, etc.


n Internal Audit and Company Audit The Company has an internal audit team (two members) to conduct internal audits to detect regulatory violations and potential risks and specifi c internal audits tailored to the business. The results are reported to the president as internal audit reports. An improvement order, issued by the internal audit team, directly instructs department heads to take corrective action and department heads report the progress through an improvement report. Internal audit reports are circulated among relevant directors and department heads to help improve the per-formance of the corresponding department. Additionally, in close cooperation between the internal audit team and the Compliance Report & Consultation Desk, the Company endeavors to prevent any acts that create unfavorable circumstances for the Company. Furthermore, the internal audit team monitors the results of subsidiaries’ internal audits to ensure the sound operation of subsidiaries and, if necessary, offers advice and proposals, etc., to the subsidiaries’ internal audit teams. The results of the internal audit team’s monitoring is reported to the president, and if the president fi nds it necessary, the internal audit team conducts direct audits of subsidiaries within legal boundaries to determine whether inappropriate conduct or illegal acts have been committed. An improvement order is then issued by the internal audit team to address the matter. The company audit is performed by the Audit & Supervisory Board, composed of four members (two of whom are outside members), and is adopted by the Company. The Audit & Supervisory Board meeting is regularly held once a month to conduct legal audits, mainly by full-time members, to examine whether each director’s execution of duties is based on laws and regulations as well as on the Company’s Articles of Incorporation. Also, in close cooperation with the internal audit team, the Audit & Supervisory Board ascertains whether employees’ execution of duties is based on laws and regulations. The Company’s accounting auditor, Hibiki Audit Corporation, and the Company’s Audit & Supervisory Board Members discuss and exchange views whenever necessary to gather information and to further develop an enhanced auditing system.

n Accounting Audit The accounting audit by Hibiki Audit Corporation is based on regulations under the Companies Act and Financial Instruments and Exchange Act. There is no confl ict of interest requiring mention as per the Certifi ed Public Accountant Act between the Company, Hibiki Audit Corporation, and managing members with regard to the execution of duties. The names of certifi ed public accountants who conducted the audit and the composi-tion of assistants involved in the accounting audit for fi scal 2015 are as follows:

Name of certifi ed public accountant who conducted the Company’s accounting audit

Audit corporation to which the accountant belongs

Years of continuous audit

Representative Partner, Managing Member

Shozo Ikejiri Hibiki Audit Corporation

Three years


Shuhei Fujimoto Hibiki Audit Corporation

One year


Naoya Hayashi Hibiki Audit Corporation

Three years

Note: Assistants involved in the accounting audit included 13 certifi ed public accountants and one other.

n Internal Control SystemBased upon a resolution by the Board of Directors, the director in charge of each department is responsible for the execution of the department’s duties. The Board of Directors’ meeting is held monthly, based on Rules & Regulations of the Board of Directors, where resolutions on important management issues and individual projects are adopted and progress of business and operational performance are reported. Also, at the Audit & Supervi-sory Board meeting, held immediately prior to the ordi-nary Board of Directors’ meeting, bills are proposed and deliberated upon with regard to their necessity and legiti-macy. In addition, the Audit & Supervisory Board makes inquiries at Board of Directors’ meetings to ensure that transparency of the Board of Directors is maintained. The Management Meeting is held every month, attended by executives of the Company and subsidiaries, to track the performance and progress of each department, to examine the execution of duties, and to implement appropriate countermeasures. Moreover, an online approval system, which can be accessed from outside the Company, expedites the decision-making process. Through this system, requests can be reviewed and approval can be obtained for any issues under consideration, further accelerating the decision- making process and enhancing management effi ciency.

Corporate Governance


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Risk Management

Overview

The J Trust Group has established a set of guidelines, the Risk Management Regulations, for managing risk across the entire Group. Under these guidelines, the Group takes appropriate measures to manage risk effec-tively, and further, to minimize the effects of actualized risks on the Group and to reduce any harm that may result, while ensuring that business operations remain uninterrupted and the integrity of the organization is maintained. In addition, the Group has published a Risk Management Manual, which, along with the Risk Management Regulations, is stored in a database to be consulted by both executives and employees. The Group’s efforts to enhance its risk management structure are underpinned by the following basic policy: 1) Each department of every Group company is respon-sible for effectively and rationally identifying various risks; 2) The Compliance & Risk Management Committee and each Group company deliberate over measures for managing signifi cant risks; and 3) Each Group com-pany precisely forecasts and studies expected future risks, both internal and external, as well as develops preventative measures to effectively manage such risks.

Risk Management System

The Group, regarding ensuring compliance as the premise of risk management in all respects, has the Compliance & Risk Management Committee to realize better internal compliance structure. This Committee sets internal regulations for compliance-related matters to ensure high-level compliance awareness and, by collect-ing information on the risk realized though daily activities and analyzing results, considers/discusses proper responses to any signifi cant risk information. Also, the Group makes every effort to prevent/mitigate risk through Monthly Reporting, which allows employees to offer opinions/proposals to the President, and the Compliance Report & Consultation Desk, which receives consultations/reports on corporate ethics from executives and employees. Furthermore, the Group promotes the development of internal structures to prevent leakage of personal infor-mation by stipulating Personal Information Protection Regulations on how to handle/manage personal infor-mation, following the implementation of the Act on the Protection of Personal Information on April 1, 2005.

J Trust Group Companies

J Trust Co., Ltd.

Board of Directors

President

1. Credit, Market & Liquidity Risk

2. Management, Legal & Compliance Risk

3. Information & Reputational Risk

4. Operational & Business Risk

5. Disaster & Environmental Risk

6. System Risk

Risk Management Team

Management Meeting

Compliance & Risk Management Committee

Information System Committee

Policy Formulation Instruction & Advice Consultation & Report

n Risk Management Framework (As of March 31, 2015)

Strengthening Compliance to Mitigate Risk


Messages from Outside Executives

I contribute to the healthy development of the J Trust Group as a “fresh, outside set of eyes.”

The J Trust Group is undergoing dramatic growth in business scope and employee numbers due to its powerful drive to expand its business domains. In recent years, it has also increased the pace of overseas corporate acquisitions and investments. These factors underscore the increasing need for transparent groupwide compliance and governance, as well as risk management. I have many years of business and auditing experience in fi nancial institutions. As an outside Audit & Supervisory Board Member in this context, I pay particular attention to monitoring the operating environments and associated risks specifi c to the Group’s international businesses, in addition to offering advice on information gathering and analysis and appropriate risk management. A major responsibility of an outside Audit & Supervisory Board Member is to monitor the decision-making process to ensure fair and transparent operations and thus maximize return to general shareholders and the company itself. From the perspective of contributing to sound, sustained growth and advancement, Audit & Supervisory Board Members stand united with the top management team, including outside directors, and share the same responsibilities. J Trust increased the number of its out-side directors by two—to three from one—in June 2014, and I believe this has further strengthened the Group’s corporate governance structure. Furthermore, in accordance with the Corporate Governance Code, which was implemented in May 2015, outside directors are working more closely with the Audit & Supervisory Board as we strive to put in place the most appropriate management for the Group’s global expansion. We are also assisting with the establishment and improvement of the Group’s corporate governance and compliance structures.

I will help build compliance and governance systems suited to global business advancement.

Hideki YamaneFull-Time Outside Audit & Supervisory Board Member

An increasing number of listed companies are electing independent, outside directors whose interests do not confl ict with those of general shareholders. Nevertheless, of the 548 companies listed on the Second Section of the Tokyo Stock Exchange, only 13, or 2.4%, have three or more independent, outside directors.* From this perspective, J Trust, as a company that has registered three independent, outside directors including myself for the past two fi scal years, is a company that is being proactively managed with an emphasis on “fresh, outside sets of eyes.” After serving on the Company’s Advisory Board for three years, I joined the Board of Directors as an outside director in June 2014. In this posi-tion, my role is to determine that decisions of the Board of Directors do not present confl icts of interest, are not prejudiced by strictly internal considerations, and are acceptable from the standpoint of shareholders. As an outside director, I am expected to act as a “fresh, outside set of eyes.” Using my background as a legal specialist, I will seek to ensure that corporate governance is thoroughly implemented, so that the J Trust Group strictly complies with laws and regulations as a member of society, and grows through fruitful business activities.

* Appointment of Outside Directors by TSE-Listed Companies [Preliminary Figures]; Tokyo Stock Exchange, Inc.; June 17, 2015

Norio IgarashiOutside Director


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CSR Framework

Customers

Shareholders and other investors

Global environment

Local communities

Society

Employees

To be trusted by society, the J Trust Group places great importance on its relationships with stakeholders, including customers, shareholders, employ-ees, business partners, and local communities. This requires management decision making that values our relationships with these stakeholders and takes into account the impact of our actions on them. We are also conscious of the global environment, and proactively participate in social contribution activities as a member of society. This is because we consider it important to build relationships of trust with customers and local communities. All of our employees, beginning with myself, carry out our work with a sense of vitality, to create a corporate group that contributes to the development of customers and local communities and is highly regarded by shareholders and other investors. I believe that being a corporate group that is trusted by society, a society that envisions prosperity for the J Trust Group, means that the Group is making a contribution toward the creation of a better world for future generations.

Nobuyoshi FujisawaRepresentative Director, President & Chief Executive Offi cer

Our CSR approach

We are fulfi lling our social responsibility as a company, to create a better world for future generations.

We strive to develop products from a customer’s perspective and provide services superior to those of our competitors.

We are proactively involved in preserving the global environment.

We emphasize diversity in our workforce and strive to create an accommodating workplace.

By promoting sports, we help to revitalize local communities.

We assist in the achievement of normalization.*

* The concept of disabled and non-disabled people sharing their social lives without discrimination

We build relationships of trust through timely and fair disclosure.

The J Trust Group’s CSR Activities

By building sound relationships with all stakeholders, we aim to become a corporate group that is trusted by society.


ISMS accreditedJ Trust System Co., Ltd.

For customersThe J Trust Group is engaged in a variety of activities to ensure that custom-ers can use our services with peace of mind, with a basic policy of develop-ing products from a customer’s perspective and providing services superior to those of our competitors.

Enhancing service qualityWe strive to provide quality services by acquiring fi nance-related expertise and enhancing the level of customer services. To improve our services, we ensure that our business conduct refl ects the requests of our customers, whether it be through personal interaction with them or from their views collected in questionnaires.

Reinforcing information security The J Trust Group is working to reinforce information security based on its Basic Policy on Information Security. Group companies that handle large quantities of personal information obtain ISMS and Privacy Mark certifi cation, and strive to improve the level of information security.

Quarterly earnings presentation

Privacy Mark accreditedPartir Servicer Co., Ltd.

For shareholders and other investorsThe J Trust Group regards return to shareholders as an important management issue and proactively returns profi ts.

Communication with shareholders and other investorsThe J Trust Group is supported by more than 18,000 shareholders (as of March 31, 2015). To provide information in a timely manner, we hold quar-terly earnings presentations for investors, and make these briefi ngs available as an on-demand streaming video service via the internet. We also offer an e-mail service for distributing investor relations-related information.

Enhanced website usabilityWe strive to enhance the usability of our website with features including a screen reader function for users with visual impairment, English- and Korean-language pages, and a smartphone site.


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Marathon for the visually impaired

For societyThe J Trust Group works to help achieve normalization. This involves regularly carrying out various activities proposed by employees in Japan and overseas.

Realizing normalizationJ Trust supports the activities of the Japan Blind Marathon Association (JBMA), which organizes marathons for the visually impaired and other events in which disabled and non-disabled persons participate, to realize normalization.

Employee-proposed activitiesThe J Trust Group regularly hosts a variety of volunteer activities proposed by employees in Japan and overseas. In South Korea, employees visit centers for single mothers who have diffi culty maintaining a house while also holding a job, to assist with cooking and household chores. Fund-raising drives are also held on a regular basis. Other activities include monetary donations, blood drives, and cleaning projects at orphanages.

For local communitiesThe J Trust Group promotes sporting activities that offer a sense of excitement, which contributes to community revitalization and the nurturing of youth.

Support for FC GifuSince February 2014, we have been a major supporter of the J. League soccer team FC Gifu, which has adopted the slogan “Giving dreams to children!!” We are pleased to help the team provide excitement to soccer fans.

Support for ACT SAIKYOWe have been a sponsor of the nonprofi t organization ACT SAIKYO since June 2012. ACT SAIKYO holds regular badminton lessons to promote sports and to foster such recreation as a community activity, under the banner “Leading the way in promoting active engagement with local communities.”

Support for East Asian Cup 2015J Trust was an offi cial supporter of the EAFF East Asian Cup 2015 and the EAFF Women’s East Asian Cup 2015, held by the East Asian Football Federation (EAFF) in Wuhan, China, on August 1–9, 2015. We will actively support sporting events going forward, with a desire to be a “company offering great excitement.”

ACT SAIKYO badminton lesson


For employeesThe J Trust Group strives to create workplaces in which employees with diverse backgrounds can work with a sense of vitality and advance their careers.

Work-life balanceThe J Trust Group offers employees leave to look after sick children or elderly relatives, as well as child care leave and shortened working hours while rais-ing a young family. In June 2013, our Group company ADORES, Inc. was awarded the “Kurumin Mark” by the Ministry of Health, Labour and Welfare in recognition of having met the ministry’s benchmarks for child-rearing support.

Creating a vital workplaceThe J Trust Group has created a variety of support mechanisms to enable employees to work with a sense of vitality and ambition, and with sound minds and bodies. These include harassment awareness seminars and other human rights education, the establishment of internal and external hotlines, and contracts with industrial physicians for the Group.

For the global environmentThrough our business activities and social contribution activities, the J Trust Group works to preserve the global environment in a variety of ways.

Prevention of global warmingThe J Trust Group has introduced measures promoted by the government to address global warming, including “super cool biz” and “warm biz” (setting offi ce temperatures higher in the summer and lower in the winter, and allow-ing employees to dress accordingly), the installation of LED lighting, and the planting of greenery on our head offi ce building.

Ecocap MovementThe J Trust Group participates in the Ecocap Movement, which collects and recycles used plastic bottle caps. The profi ts from the sale of the bottle caps are used to purchase vaccines for children in developing countries.

Greenery planted on roof of head offi ce building

Kurumin Mark

The J Trust Group’s CSR Activities


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31.0%

23.5%

9.1%

7.1%

29.3%

24,000

18,000

12,000

6,000

0

1,916 2,793

13,214

19,857

3/2011 3/2012 3/2013 3/2014 3/2015

24,000

18,000

12,000

6,000

0

13,570

16,59715,087

3/2011 3/2012 3/2013 3/2014 3/2015

8,000

6,000

4,000

2,000

0

3,1712,670

4,2884,975

5,822

3/2011 3/2012 3/2013 3/2014 3/2015

International business

Amusement business


Other business

40,000

30,000

20,000

10,000

03/2011

13,326

3/2012

19,927

3/2013

33,384

3/2014 3/2015

25,300

18,790Financial business

1 Operating revenue for the year ended March 31, 2015 includes that of Japan Care Welfare Group Co., Ltd.

Business segments Operating revenue (millions of yen)Composition of operating revenue (FY2015)

6,000

4,500

3,000

1,500

0

865 859

3,037 3,072

4,561

3/2011 3/2012 3/2013 3/2014 3/20151

Financial & Corporate Data

At a Glance


Nihon Hoshou Co., Ltd.

Partir Servicer Co., Ltd.

J TRUST Card Co., Ltd.

Credit guarantee

Credit and consumer credit

Purchase of accounts receivable

Business loan

Consumer loan


Purchase of loans receivable

Banking business

Investment and management support

businesses

Amusement facilities operation business

Manufacturing and sales of amusement

machine toys

Real estate sales and brokerage

Purchase and sale of income properties

IT system

Design and construction business

JT Chinae Savings Bank Co., Ltd.

JT Savings Bank Co., Ltd.

JT Capital Co., Ltd.

TA Asset Management LLC

PT Bank JTrust Indonesia Tbk.2

JTRUST ASIA PTE. LTD.

ADORES, Inc.

BREAK Co., Ltd.

Keynote Co., Ltd.

ADORES, Inc.

J Trust System Co., Ltd.

Keynote Co., Ltd.

2 PT Bank JTrust Indonesia Tbk. has been included in the consolidated balance sheets only for the year ended March 31, 2015.

Business description Major subsidiaries


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Overview of Operating Results

During the fi scal year ended March 31, 2015, the recov-ery of the US economy became more apparent while the global economic outlook remained unclear on the back of a slowdown in the Chinese economy and defl ationary concern in Europe. Especially, the fi nancial markets, cur-rency markets and stock markets in Asia occasionally experienced signifi cant volatility due to the possible inter-est rate hike in the US. As for Japan, on the back of such measures as the fi nancial and economic policies imple-mented by the Japanese government and the Bank of Japan to exit from defl ation, the yen depreciated and the stock market surged. There were some positive indica-tions of recovery in corporate results, business confi -dence and consumer confi dence. On the other hand, concern about business results remained due to yen depreciation and prolonged stagnation in consumer con-fi dence after the consumption tax hike. Therefore, we cannot be optimistic about the outlook. In this economic environment, we, as a Group, con-sider that it is necessary to transform our business ahead of the change in the global and Japanese economies. Our major task is to expand business in Asia, whose economy is expected to continue growing at a rapid pace, and maximize the synergies generated by our network of Group companies. Based on the above-mentioned business strategy, in the fi scal year ended March 31, 2015, we focused on building the foundation for future profi t generation. In addition, aiming for further growth, the Group has been

250,000

200,000

150,000

100,000

50,000

0

46,701 43,233

71,364

154,941

224,401219,512

Mar 2014 Jun 2014 Sep 2014 Dec 2014 Mar 2015 Jun 2015

(Millions of yen)

Loans by Banking Business Asset Ranking of Savings Banks

South Korea (JT Chinae Savings Bank + JT Savings Bank)

Indonesia (Bank JTrust Indonesia)

No. Headquarters Savings Bank Assets

1 Seoul SBI Mutual Savings Bank 3,853.9

2 Seoul HK Mutual Savings Bank 2,028.7

3 Seoul/Gyeonggi JT Chinae Savings Bank + JT Savings Bank 1,850.9

4 Gyeonggi Korea Mutual Savings 1,577.9

5 Inchon Moa Mutual Savings 1,474.9

6 Seoul OK Savings Bank 1,446.8

7 Seoul JT Chinae Savings Bank 1,417.0

8 Seoul OSB Savings Bank 1,178.6

9 Seoul Dongbu Mutual Savings 1,125.4

10 Seoul Hana Savings 1,043.7

30 Gyeonggi JT Savings Bank 433.9

78 Gyeongsangbuk-do Daea Mutual Savings 29.8

79 Gyeongsangbuk-do Daewon Mutual Savings 25.6

(Billions of won)

Note: As of March 31, 2015

Management’s Discussion and Analysis of Operations

proactively conducting M&A both in Japan and overseas to facilitate the effi cient use of management resources and improvement in management effi ciency.

1. Business development in South Korea

From Standard Chartered Korea Limited we acquired all the shares of Standard Chartered Savings Bank Korea Co., Ltd. in January 2015 and Standard Chartered Capital (Korea) Co., Ltd. in March 2015, making both of them consolidated subsidiaries. The trade names have been changed from Standard Chartered Savings Bank Korea Co., Ltd. to JT Savings Bank Co., Ltd. (hereinafter, “JT Savings Bank”) and from Standard Chartered Capital (Korea) Co., Ltd. to JT Capital Co., Ltd. (hereinafter, “JT Capital”). Through the acquisition of the shares of JT Savings Bank, the combined operating area of JT Chinae Savings Bank Co., Ltd. (hereinafter, “JT Chinae Savings Bank”) and JT Savings Bank expanded to approximately 70% of South Korea. This will enable us to strengthen our marketing efforts and to provide services throughout the country. Therefore, we can expect, among others, an increase in loan balance and deposit balance, better cost performance in marketing and advertising and improvement in reputation. Moreover, we can now hire competent people countrywide. In August 2014, we transferred the loan business of HICAPITAL, TA Asset Management and Neoline Credit, hereinafter collectively called “Group Financial Companies,” to JT Chinae Savings Bank. After the


transfer, loan disbursement is handled by JT Chinae Savings Bank and Group Financial Companies specialize in purchase and collection of non-performing loans (NPLs). Through this move, we have established the infrastruc-ture to provide comprehensive fi nancial services in South Korea and now aim at generating maximum synergies through the organic growth of each business entity.

2. Business development in Southeast Asia

In Indonesia, in November 2014, we acquired 99.0% of the shares of PT Bank Mutiara Tbk. (currently PT Bank JTrust Indonesia Tbk., hereinafter, “Bank JTrust Indonesia”), a commercial bank in Indonesia from Indonesia Deposit Insurance Corporation, which owned 99.996% shares, making it our consolidated subsidiary. Going forward, we plan to provide comprehensive fi nancial services including various loans, card services, and foreign exchange-related services targeting small and medium-sized enterprises and salaried workers whose presence is rapidly growing along with economic expansion. Moreover, in Thailand, we concluded an agreement to underwrite a convertible bond issued by Group Lease PCL (Kingdom of Thailand), listed on the Stock Exchange of Thailand, through JTRUST ASIA PTE. LTD. (hereinafter, “JTA”). We aim at generating synergies through the provi-sion of fi nance by Bank JTrust Indonesia, collaborative development of hire-purchase fi nancing business in

Business Structure in South Korea Business Structure in Southeast Asia


• Low interest rate deposits as business resource

• New loans• Purchase of loans

receivable

• Collection of receivables• Purchase of NPLs

• New loans

Purchase and collection of NPLs

Trade name was changed from Standard Chartered Capital (Korea) Co., Ltd.

Trade name was changed from Standard Chartered Savings Bank Korea Co., Ltd. to JT Savings Bank Co., Ltd.

Ranks 3rd in savings bank industry in South Korea

LeaseLoanMulti-finance companies

Wholesale fi nancing

Collaboration with multi-finance companies

Individual/business

Indonesia, whose economy is expected to continue growing and business alliances when Group companies operate in Southeast Asia. We will establish a network of Group companies, part-ners and their offi ces, accumulate the strengths of each company in fi nancial, real estate and amusement fi elds, and provide services with higher value-added all over Asia so that we can contribute to the further development of the Asian economy.

3. Domestic business development

We conducted the following organizational restructuring of credit card business. KC Card transferred the “KC Card” brand, changed its trade name to J TRUST Card Co., Ltd. and assumed a part of the business of NUCS in January 2015. We will endeavor to expand credit card business through the expansion and reinforcement of our client base, focusing on the newly created “J TRUST Card” brand.


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3/2015

2014/3

2015/3

Operating revenue (Millions of yen)

Operating income (loss) (Millions of yen)

3/2014

3/2015

3/2014

3/2015

Ordinary income (loss) (Millions of yen)

Net income (Millions of yen)

61,926 13,351

13,745 11,145

63,281 (2,385)

(5,217) 10,143

Status of revenue and income is described below.

Revenue and Income

Operating Revenue

Operating revenue for the fi scal year ended March 31, 2015 was 63,281 million yen (up 2.2% year on year). Installment payment paying for commission decreased due to the transfer of the “KC Card” brand and sales in the amusement business decreased owing to such factors as the consumption tax hike. Regarding business in South Korea, banking business revenue increased as a result of JT Chinae Savings Bank’s assumption of Group Financial Companies’ loan business. Interest on loans at TA Asset Management and HICAPITAL, whose state-ments of income were not included in the scope of consolidation during the previous consolidated fi scal year, contributed during the fi rst quarter. Moreover, operating revenue at newly consolidated subsidiaries during the fi scal year increased.

Operating Income (Loss)

We recorded an operating loss of 5,217 million yen (from operating income of 13,745 million yen in the previous fi scal year) due to expenses related to the establishment of infrastructure to provide comprehensive fi nancial services in South Korea. The expenses are as follows: increase in provision of allowance for doubtful accounts owing to making TA Asset Management and HICAPITAL subsidiaries and JT Chinae Savings Bank’s assumption of loans receivable from JT Capital and recording of provi-sion and disposal of NPLs; JT Chinae Savings Bank recorded a loss on sales of loans receivable in consider-ation of the effi cient use of the Group’s funding and future restructuring of business in South Korea.

Ordinary Income (Loss)

Ordinary loss amounted to 2,385 million yen (from ordi-nary income of 13,351 million yen in the previous fi scal year) despite recording 3,166 million yen in non-operating income and the contribution from foreign exchange gains.

Non-operating income and expenses (Millions of yen)

3/2014 3/2015

Non-operating income 1,010 3,166

Share issuance cost 1,109 —

Other 295 333

Non-operating expenses 1,404 333

Net Income

We posted net income of 10,143 million yen (down 9.0% year on year). Nihon Hoshou posted business structure improvement expenses due to the implementation of an elective retirement plan. On the other hand, a gain on bargain purchase in relation to the acquisition of shares of JT Savings Bank and JT Capital was recorded under extraordinary income.

Extraordinary income and losses (Millions of yen)

3/2014 3/2015

Gain on bargain purchase 1,060 14,573

Other 842 909

Extraordinary income 1,902 15,482

Provision for loss on litigation 2,951 200

Other 613 1,880

Extraordinary losses 3,564 2,080


The Group’s performance by business segment is described below.

Financial Business

Domestic Financial Business from fi scal 2016

Operating revenue in the fi nancial business was 18,790 million yen (down 25.7% year on year) and segment income was 1,852 million yen (down 83.8%).

n Credit Guarantee ServicesThe expansion of credit guarantee business is our medium-to-long-term management strategy. We will combine our credit know-how in the fi nancial business with the brand power of partnered fi nancial institutions to better address the diversifi ed needs of customers. At the same time, the Group will seek to secure stable revenue and expand its credit guarantee business by increasing the number of partnered fi nancial institutions. As a result, the total year-end credit guarantee balance was 36,712 million yen (down 10.1% year on year). The balance of credit guarantees on secured loans was 22,821 million yen (up 15.1%). On the other hand, the balance of credit guarantees on unsecured loans decreased signifi cantly to 13,890 million yen (down 33.9%), due to the transfer of credit guarantee business of KC Card in line with the sales of its brand in 2015.

3/2014

3/2015

3/2014

3/2015


Segment income (Millions of yen)

25,300

11,435

18,790

1,852

Management’s Discussion and Analysis

n Purchase of Accounts ReceivableThe Group has been proactively purchasing new receiv-ables, and the year-end balance of purchased receivables was 3,906 million yen (up 54.5% year on year).

n Credit and Consumer Credit ServicesIn terms of credit and consumer credit services, we pro-vide a variety of services and products that utilize a credit card’s settlement function to increase the number of credit card holders and spending per customer and to secure profi t through fees from purchase transactions, cash advances and loans. However, the loan balance decreased signifi cantly due to the transfer of the “KC Card” brand and progress in collection in cash advances. As a result, the year-end balance of advances paid–installment, including long-term operating loans receiv-able, was 1,422 million yen (down 96.5% year on year). This amount included 1,395 million yen in advances paid–installment (down 96.5%) and 27 million yen in long-term operating loans receivable (down 97.4%).

n Business Loan ServicesThe balance of commercial notes, which was once in decline, remains at a similar level due to aggressive efforts on the back of growth in the volume of commer-cial notes handled by partnered fi nancial institutions. Accounts receivable–operating loans decreased owing to smooth loan collections such as full repayment of property-based loans by major borrowers while receivable-based loans increased. As a result, the year-end balance of business loans, including long-term operating loans receivable, was 4,362 million yen (down 5.7% year on year). This amount included 2,355 million yen in commercial notes (down 0.6%), 1,904 million yen in accounts receivable– operating loans (down 13.5%) and 101 million yen in long-term operating loans receivable (up 86.7%).


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International Business

From fi scal 2016, the fi nancial businesses in South Korea and in Southeast Asia are being split off into two separate segments. However, results for fi scal 2014 and fi scal 2015 include those of JTA.

Operating revenue in the international business totaled 19,857 million yen (up 50.3% year on year). Segment loss was 5,811 million yen (from segment income of 3,046 million yen in the previous fi scal year) due to tem-porary factors such as the recording of a loss on sales of accounts receivable and increase in provision of allow-ance for doubtful accounts at JT Chinae Savings Bank. In South Korea, loans by banking business increased considerably because of the transfer of loan business from Group Financial Companies to JT Chinae Savings Bank in August 2014 and the acquisition of JT Savings Bank in January 2015. Accounts receivable–operating loans decreased due to the transfer of loan business to JT Chinae Savings Bank, while it increased because of the acquisition of JT Capital in March 2015. The year-end balance of loans by banking business was 224,401 million yen (up 380.5% year on year) and the year-end balance of accounts receivable–operating loans including long-term operating loans receivable was 59,701 million yen (up 42.4%). This amount included 58,188 million yen (up 44.4%) in accounts receivable–operating loans and 1,513 million yen (down 6.4%) in long-term operating loans receivable. Purchase of NPLs resulted in the balance of 4,741 million yen (from zero at the end of the previous fi scal year) in purchased receivables. In Southeast Asia, the balance of loans by banking business increased signifi cantly due to making Bank JTrust Indonesia our subsidiary in Indonesia in November 2014. Also, in March 2015, JTA concluded an agreement to underwrite a convertible bond issued by Group Lease PCL, listed on the Stock Exchange of Thailand. JTA intends to expand its business in fast-growing Southeast Asia and develop business so that the Group can maxi-mize the synergies generated from the establishment of its business network.

3/2014

3/2015

3/2014

3/2015


Segment income (loss) (Millions of yen)

n Consumer servicesThe Group has decided to focus on credit guarantee business and substantially scaled down unsecured loan business. As a result of this, the year-end balance of consumer loans, including long-term operating loans receivable, was 5,985 million yen (down 25.0% year on year). This amount included 5,222 million yen in accounts receivable–operating loans (down 22.4%) and 762 million yen in long-term operating loans receivable (down 38.6%).

Balance by products (Millions of yen)

3/2014 3/2015

Domestic

Accounts receivable–operating loans for businesses 4,624 4,362

Accounts receivable–operating loans for consumers 7,976 5,985

Advances paid–installment 40,814 1,422

Credit guarantee 40,839 36,712

Overseas

Accounts receivable–operating loans for consumers 41,924 53,675

Accounts receivable–operating loans for businesses — 6,025

Loans by banking business 46,701 224,401

13,214

3,046

19,857

(5,811)


Amusement Business

General Entertainment Business from fi scal 2016. However, fi scal 2015 results do not include Highlights Entertainment.

Operating revenue in the amusement business was 15,087 million yen (down 9.1% year on year) and segment income was 483 million yen (down 49.2%). Regarding the operation of amusement facilities, vari-ous events and sales promotion activities focusing on medal games were carried out. As a part of sales promo-tion and branding activities, which has been our focus since the previous fi scal year, many collaborative projects between facilities superior in information dissemination and character content were also conducted. We opened “Anime Plaza Ikebukuro,” a café operated in collaboration with various character content, as a new business to attract new customers. Although these efforts helped support spending per customer and the number of customers, it was not enough to offset the slowdown in personal consumption due to the increase in con-sumption tax. As a result, both sales and income were weak. As for the manufacturing and sales of amusement machine toys, manufacturing and sales of original prizes and miscellaneous goods, which were fi rm early in the current fi scal year, experienced some headwinds. Sup-ported by sales of other prizes with popular characters, overall sales were strong. Since we had some diffi culties with the stock up of original goods with high profi tability, income was weak.

Real Estate Business

Operating revenue in the real estate business was 5,822 million yen (up 17.0% year on year) and segment income was 402 million yen (down 18.9%). Keynote, mainly handling sales and brokerage of ready-built residential houses, achieved favorable busi-ness results. Keynote steadily increased the number of houses sold even when market sentiment was weak, and the completion and delivery of properties was carried over from the previous fi scal year due to the rise in demand prior to the consumption tax increase. As for property asset business, gain on sales of properties in metropolitan areas made a huge contribution to revenue at ADORES and stable rental income from other properties also supported revenue.

Other business

Results for fi scal 2014 and fi scal 2015 do not include JTA. Fiscal 2015 results include Highlights Entertainment.

Operating revenue in the other business was 4,561 million yen (up 48.4% year on year) and segment loss was 69 million yen (from segment income of 70 million yen in the previous fi scal year).

3/2014

3/2015

3/2014

3/2015



4,975

496

5,822

402

3/2014

3/2015

3/2014

3/2015



16,597

951

15,087

483

3/2014

3/2015

3/2014

3/2015


Segment income (loss) (Millions of yen)

3,072

70

4,561

(69)



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Total Assets

(Millions of yen) (Millions of yen) (%)

Equity Capital and Capital Adequacy Ratio

Equity capital (left axis) Capital adequacy ratio (right axis)

3/2011 3/2012 3/2013 3/2014 3/2015

600,000

450,000

300,000

150,000

0

200,000

150,000

100,000

50,000

0

60

45

30

15

03/2011 3/2012 3/2013 3/2014 3/2015

Financial Position and Liquidity

Total Assets

As of March 31, 2015, total assets amounted to 540,718 million yen (up 205,982 million yen year on year). Owing to the transfer of the “KC Card” brand, advances paid–installment decreased by 38,381 million yen. Cash and deposits increased by 9,506 million yen. The increase in accounts receivable–operating loans by making JT Capital a subsidiary exceeded the decrease due to the transfer of Group Financial Companies’ loan business to JT Chinae Savings Bank and accounts receivable– operating loans increased by 16,073 million yen. Loans by banking business increased by 177,700 million yen and goodwill increased by 35,743 million yen due to JT Chinae Savings Bank’s assumption of Group Financial Companies’ accounts receivable and making Bank JTrust Indonesia and JT Savings Bank our subsidiaries. Purchased receivables increased by 6,119 million yen because the purchase of NPLs increased in South Korea.

Liabilities

Total liabilities at the fi scal year-end amounted to 345,853 million yen (up 195,347 million yen year on

year). Long-term loans payable including the current portion decreased by 13,881 million yen. Deposits by banking business increased by 210,309 million yen since deposit taking at JT Chinae Savings Bank progressed well and JT Savings Bank and Bank JTrust Indonesia became our subsidiaries.

Net Assets

As of March 31, 2015, net assets totaled 194,865 million yen (up 10,635 million yen year on year). The present value of available-for-sale securities held by JTA declined and the valuation difference on available-for-sale securi-ties decreased by 3,373 million yen. Retained earnings increased by 9,083 million yen with the recording of 1,180 million yen in dividends of surplus and 10,143 million yen in net income. The increase in foreign currency translation adjustment by 4,973 million yen also contributed. As a result, net assets per share amounted to 1,591.09 yen (up 88.55 yen). The capital adequacy ratio declined by 18.2 percentage points, from 53.0% in the previous consolidated fi scal year to 34.8%. Making various compa-nies, including Bank JTrust Indonesia, JT Capital and JT Savings Bank, our subsidiaries resulted in a substantial increase in assets and liabilities.


Cash Flows

(Millions of yen)

Cash fl ows from operating activities

Cash fl ows from investing activities

Cash fl ows from fi nancing activities

3/2014 3/2015

90,000

60,000

30,000

0

-30,000


Cash Flows

The year-end cash and cash equivalents (hereinafter, “funds”) decreased by 13,288 million yen to 118,060 million yen (down 10.1% year on year). Factors boosting cash fl ows included recording of income before income taxes and minority interests, an increase in deposits by banking business and decreases in operating loans receivable and advances paid–installment mainly due to transfer of receivables. On the other hand, loans by banking business increased and acquisitions of shares of subsidiaries resulting in a change in scope of consoli-dation and the repayment of long-term loans payable decreased funds.

n Operating ActivitiesNet cash provided by operating activities amounted to 15,452 million yen (up 35.1% year on year). Factors holding down cash fl ows included a 43,878 million yen increase in loans by banking business due to an increase in the outstanding balance of new loans and assumption of loans at JT Chinae Savings Bank and the recording of 14,573 million yen in gain on bargain purchase in relation to share acquisitions of various institutions including JT Savings Bank and JT Capital. Due to the purchase of NPLs, the net increase in purchased receivables was 6,151 million yen. Factors boosting cash fl ows included 11,016 million yen in income before income taxes and minority interests, a 60,271 million yen increase in

deposits by banking business, a 12,789 million yen net decrease in accounts receivable–operating loans due to the transfer of accounts receivable and a 3,249 million yen net decrease in advances paid–installment.

n Investing ActivitiesNet cash used in investing activities totaled 15,148 million yen (compared with 17,775 million yen in net cash used in investing activities in the previous fi scal year). Factors boosting cash fl ows included 27,327 million yen in pro-ceeds from transfer of business associated with the transfer of the “KC Card” brand. Contributing factors included 34,436 million yen in the purchase of shares of subsidiaries resulting in change in scope of consolidation due to proactive M&A activities, a 4,926 million yen net decrease in non-current assets-related cash fl ows, a 1,516 million yen net decrease in securities-related cash fl ows and a 1,359 million yen net decrease in investment securities-related cash fl ows.

n Financing ActivitiesNet cash used in fi nancing activities totaled 20,593 mil-lion yen (compared with 74,464 million yen in net cash provided by fi nancing activities in the previous fi scal year). Factors holding down cash fl ows included a 15,637 mil-lion yen net decrease in long-term loans payable-related cash fl ows, a 4,442 million yen net decrease in bonds payable-related cash fl ows and 1,180 million yen in cash dividends paid.


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Consolidated Balance SheetsJ Trust Co., Ltd. and Consolidated SubsidiariesAs of March 31, 2013, 2014 and 2015

(Millions of yen)

2013 2014 2015

Assets

Current assets

Cash and deposits ¥ 62,140 ¥132,235 ¥141,742

Commercial notes 1,656 2,369 2,355

Accounts receivable-operating loans 18,227 49,242 65,315

Loans by banking business 48,210 46,701 224,401

Advances paid-installment 48,133 39,776 1,395

Purchased receivables 2,529 2,527 8,647

Subrogation receivable 656 798 1,124

Securities 788 10,787 17,874

Operational investment securities — 8,918 6,595

Merchandise and finished goods 1,336 2,152 2,688

Work in process 355 418 515

Deferred tax assets 184 3,013 2,273

Accounts receivable-other 12,032 6,614 2,399

Other 4,584 4,892 11,457

Allowance for doubtful accounts (11,574) (11,657) (20,525)

Total current assets 189,262 298,790 468,260

Non-current assets

Property, plant and equipment

Buildings and structures 14,135 13,637 11,200

Accumulated depreciation (10,360) (9,652) (7,471)

Buildings and structures, net 3,774 3,984 3,729

Amusement machine 18,953 17,973 17,519


Amusement machine, net 2,356 1,848 1,351

Land 4,107 4,825 3,359

Other 2,841 4,068 3,854


Other, net 596 1,650 911

Total property, plant and equipment 10,836 12,309 9,352

Intangible assets

Goodwill 5,761 5,694 41,438

Other 1,003 2,939 5,664

Total intangible assets 6,764 8,633 47,102

Investments and other assets

Investment securities 678 118 3,171

Investments in capital 218 219 350

Long-term loans receivable 2,373 — —

Net defined benefit asset — 127 3

Long-term operating loans receivable 4,686 3,951 2,405

Deferred tax assets 419 365 2,228

Other 7,935 14,717 17,936

Allowance for doubtful accounts (4,469) (4,498) (10,092)

Total investments and other assets 11,842 15,001 16,002

Total non-current assets 29,443 35,945 72,458

Total assets ¥218,706 ¥334,736 ¥540,718


(Millions of yen)

2013 2014 2015

Liabilities

Current liabilities

Notes discounted ¥ 1,500 ¥ 2,173 ¥ 2,226

Current portion of bonds — 2,610 130

Short-term loans payable 3,062 6,225 7,862

Current portion of long-term loans payable 5,009 16,423 5,987

Income taxes payable 829 1,034 1,157

Deposits by banking business 73,194 77,142 287,452

Provision for point card certificates 108 139 —

Provision for loss on litigation — — 200

Provision for loss on interest repayment 7,124 4,055 1,089

Provision for loss on business liquidation 95 28 905

Other 8,547 9,070 15,587

Total current liabilities 99,471 118,904 322,598

Non-current liabilities

Bonds payable — 1,875 2,241

Long-term loans payable 30,487 14,454 11,009

Provision for loss on interest repayment 12,052 9,382 5,219

Provision for loss on guarantees 4,017 441 422

Provision for retirement benefits 16 — —

Net defined benefit liability — 197 414

Provision for loss on litigation — 2,951 399

Other 1,764 2,296 3,546

Total non-current liabilities 48,339 31,601 23,254

Total liabilities 147,810 150,505 345,853

Net assets

Shareholders’ equity

Capital stock 4,625 53,578 53,604

Capital surplus 3,966 52,920 52,945

Retained earnings 54,320 64,626 73,709

Treasury shares (194) (197) (197)

Total shareholders’ equity 62,716 170,928 180,062

Accumulated other comprehensive income

Valuation difference on available-for-sale securities (10) 3,330 (42)

Foreign currency translation adjustment 918 3,032 8,005

Remeasurements of defined benefit plans — (27) 9

Total accumulated other comprehensive income 908 6,335 7,972

Subscription rights to shares 140 117 167

Minority interests 7,130 6,848 6,663

Total net assets 70,895 184,230 194,865

Total liabilities and net assets ¥218,706 ¥334,736 ¥540,718


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(Millions of yen)

2013 2014 2015

Operating revenue

Discount revenue ¥ 190 ¥ 183 ¥ 188

Interest on loans 5,123 3,054 4,934

Collection from purchased receivable 2,403 3,018 3,439

Installment payment paying for commission 10,016 7,463 4,701

Commission fee 221 258 273

Sales on real estate business 4,285 4,970 5,821

Interest on deposits 29 67 239

Other financial revenue 6,868 3,091 1,051

Sales on amusement business 13,484 16,510 15,073

Banking business revenue 1,222 12,392 14,376

Other operating revenue 11,838 10,915 13,181

Total operating revenue 55,683 61,926 63,281

Operating expenses

Discount on notes payable expense 58 50 63

Interest on loans 1,412 979 1,076

Guarantee commission 10 — —

Cost of purchased receivable 614 700 843

Cost of sales-real estate 3,700 4,045 4,919

Cost of sales on amusement business 11,867 13,982 12,942

Banking business expenses 816 4,630 6,031

Other operating expenses 2,305 1,950 3,407

Total operating expenses 20,786 26,339 29,285

Operating gross profit 34,897 35,586 33,996

Selling, general and administrative expenses

Provision of allowance for doubtful accounts 71 213 9,513

Bad debts expenses 988 1,161 54

Provision for loss on interest repayment 1,195 (209) 2,229

Provision for loss on guarantees 1,484 (3,575) 108

Directors’ compensations 536 601 690

Salaries and allowances 7,537 9,395 9,432

Share-based compensation expenses 77 67 72

Provision for bonuses (75) — —

Retirement benefit expenses (7) 246 328

Commission fee 2,497 3,483 3,824

Amortization of goodwill 687 1,320 1,334

Other 7,898 9,135 11,624

Total selling, general and administrative expenses 22,892 21,841 39,214

Operating income (loss) 12,005 13,745 (5,217)

Non-operating income

Interest income 11 5 19

Dividend income 937 173 32

House rent income 188 164 139

Foreign exchange gains 530 243 2,814

Contribution income — 244 —

Miscellaneous income 311 179 159

Total non-operating income ¥ 1,979 ¥ 1,010 ¥ 3,166

Consolidated Statements of IncomeJ Trust Co., Ltd. and Consolidated SubsidiariesFor the fi scal years ended March 31, 2013, 2014 and 2015


(Millions of yen)

2013 2014 2015Non-operating expenses

Interest expenses ¥ 164 ¥ 219 ¥ 164Depreciation 26 23 18Share of loss of entities accounted for using equity method — — 117Share issuance cost 52 1,109 —Miscellaneous loss 35 51 33Total non-operating expenses 279 1,404 333

Ordinary income (loss) 13,704 13,351 (2,385)Extraordinary income

Gain on sales of non-current assets 27 65 12Gain on sales of investment securities 102 462 25Gain on transfer of business — — 848Gain on sales of shares of subsidiaries and associates — 216 —Gain on bargain purchase 294 1,060 14,573Gain on change in equity 148 — —Other 72 97 23Total extraordinary income 645 1,902 15,482

Extraordinary lossesLoss on sales of non-current assets 28 75 46Loss on abandonment of non-current assets 12 47 115Impairment loss 283 429 782Loss on valuation of investment securities 0 0 —Provision for loss on litigation — 2,951 200Business structure improvement expenses 158 27 908Other 45 33 27Total extraordinary losses 528 3,564 2,080

Income before income taxes and minority interests 13,821 11,689 11,016Income taxes-current 807 558 437Income taxes-deferred (225) (644) 241Total income taxes 581 (85) 679Income before minority interests 13,240 11,774 10,337Minority interests in income (loss) (69) 629 194Net income ¥13,309 ¥11,145 ¥10,143

(Millions of yen)

2013 2014 2015Income before minority interests ¥13,240 ¥11,774 ¥10,337Other comprehensive income

Valuation difference on available-for-sale securities (13) 3,341 (3,202)Foreign currency translation adjustment 970 2,124 4,959Remeasurements of defined benefit plans, net of tax — — 36Total other comprehensive income 957 5,466 1,793

Comprehensive income 14,197 17,240 12,131Comprehensive income attributable to

Comprehensive income attributable to owners of parent 14,250 16,600 11,779Comprehensive income attributable to minority interests ¥ (52) ¥ 640 ¥ 351

Consolidated Statements of Comprehensive IncomeJ Trust Co., Ltd. and Consolidated SubsidiariesFor the fi scal years ended March 31, 2013, 2014 and 2015


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Consolidated Statements of Changes in Net AssetsJ Trust Co., Ltd. and Consolidated SubsidiariesFor the fi scal years ended March 31, 2014 and 2015

(Millions of yen)


Capital stock Capital surplus Retained earnings Treasury shares

Total shareholders’

equity

Balance at beginning of current period ¥ 4,625 ¥ 3,966 ¥54,320 ¥(194) ¥ 62,716

Changes of items during period

Issuance of new shares 48,953 48,953 97,907

Dividends of surplus (839) (839)Net income 11,145 11,145Purchase of treasury shares (2) (2)

Disposal of treasury shares 0 0 0

Net changes of items other than shareholders’ equity

Total changes of items during period 48,953 48,954 10,306 (2) 108,211

Balance at end of current period ¥53,578 ¥52,920 ¥64,626 ¥(197) ¥170,928

(Millions of yen)


Subscription rights to

sharesMinority interests

Total net assets

Valuation difference on available-for-

sale securities

Foreign currency

translation adjustment

Remeasure-ments of

defined benefit plans

Total accumulated

other comprehensive

income

Balance at beginning of current period ¥ (10) ¥ 918 ¥ — ¥ 908 ¥140 ¥7,130 ¥ 70,895


Issuance of new shares 97,907

Dividends of surplus (839)Net income 11,145Purchase of treasury shares (2)

Disposal of treasury shares 0

Net changes of items other than shareholders’ equity 3,340 2,114 (27) 5,427 (22) (281) 5,123

Total changes of items during period 3,340 2,114 (27) 5,427 (22) (281) 113,334

Balance at end of current period ¥3,330 ¥3,032 ¥(27) ¥6,335 ¥117 ¥6,848 ¥184,230


2015

(Millions of yen)


Capital stock Capital surplus Retained earnings Treasury shares

Total shareholders’

equity

Balance at beginning of current period ¥53,578 ¥52,920 ¥64,626 ¥(197) ¥170,928


Issuance of new shares 25 25 50

Dividends of surplus (1,180) (1,180)Net income 10,143 10,143Purchase of treasury shares (0) (0)

Disposal of treasury shares 0 0 0

Change of scope of equity method 120 120

Net changes of items other than shareholders’ equity

Total changes of items during period 25 25 9,083 (0) 9,133

Balance at end of current period ¥53,604 ¥52,945 ¥73,709 ¥(197) ¥180,062

(Millions of yen)


Subscription rights to

sharesMinority interests

Total net assets

Valuation difference on available-for-

sale securities

Foreign currency

translation adjustment

Remeasure-ments of

defined benefit plans

Total accumulated

other comprehensive

income

Balance at beginning of current period ¥ 3,330 ¥3,032 ¥(27) ¥6,335 ¥117 ¥6,848 ¥184,230


Issuance of new shares 50

Dividends of surplus (1,180)Net income 10,143Purchase of treasury shares (0)

Disposal of treasury shares 0

Change of scope of equity method 120

Net changes of items other than shareholders’ equity (3,373) 4,973 36 1,636 49 (184) 1,501

Total changes of items during period (3,373) 4,973 36 1,636 49 (184) 10,635

Balance at end of current period ¥ (42) ¥8,005 ¥ 9 ¥7,972 ¥167 ¥6,663 ¥194,865


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Consolidated Statements of Cash FlowsJ Trust Co., Ltd. and Consolidated SubsidiariesFor the fi scal years ended March 31, 2013, 2014 and 2015

(Millions of yen)

2013 2014 2015Cash flows from operating activities

Income before income taxes and minority interests ¥ 13,821 ¥ 11,689 ¥ 11,016Share-based compensation expenses 77 67 72Depreciation 2,560 2,311 2,957Loss (gain) on sales of non-current assets 0 10 34Impairment loss 283 429 782Loss (gain) on sales of shares of subsidiaries and

associates — (216) —Loss (gain) on sales of investment securities (102) (462) (25)Loss (gain) on valuation of investment securities 0 0 —Loss (gain) on transfer of business — — (848)Gain on bargain purchase (294) (1,060) (14,573)Amortization of goodwill 687 1,320 1,334Loss (gain) on change in equity (148) — —Share issuance cost 52 1,109 —Increase (decrease) in allowance for doubtful accounts (4,865) (6,964) (6,518)Bad debts written off 10,252 9,081 9,532Increase (decrease) in provision for bonuses (107) — —Increase (decrease) in provision for point

card certificates (21) 30 (58)Increase (decrease) in provision for loss on

business liquidation (1,012) (67) 877Increase (decrease) in provision for loss on

interest repayment (7,480) (5,750) (1,538)Increase (decrease) in provision for loss on guarantees 1,528 (3,575) (19)Increase (decrease) in provision for retirement benefits (1) — —Increase (decrease) in provision for loss on litigation — 2,951 (2,751)Increase (decrease) in net defined benefit liability — 39 (121)Increase (decrease) in deposits by banking business 2,311 (10,612) 60,271Interest and dividend income (948) (178) (52)Discount expenses and interest expenses 2,370 5,343 4,617Foreign exchange losses (gains) (432) (280) (2,814)Decrease (increase) in inventories (216) (879) (157)Decrease (increase) in long-term operating

loans receivable 3,742 2,199 326Decrease (increase) in pledged deposit (468) 215 360Other, net (852) (1,154) (5,509)Subtotal 20,734 5,598 57,193Interest and dividend income received 948 178 43Interest expenses paid (4,353) (7,421) (4,811)Income tax paid (1,324) (2,206) (2,411)Subtotal 16,004 (3,850) 50,014Increase in commercial notes (6,636) (8,021) (7,184)Decrease in commercial notes 7,068 6,999 7,192Increase in operating loans receivable (6,824) (4,198) (9,483)Decrease in operating loans receivable 13,205 7,965 22,273Net decrease (increase) in loans by banking business (25,392) 6,601 (43,878)Increase in advances paid-installment (74,180) (73,368) (57,142)Decrease in advances paid-installment 83,467 77,903 60,392Increase in purchased receivables (1,252) (966) (8,116)Decrease in purchased receivables 865 880 1,965Proceeds from transfer of operating loans receivable 3,241 1,846 —Increase in subrogation receivable (306) (711) (997)Decrease in subrogation receivable 119 355 419Net cash provided by (used in) operating activities ¥ 9,378 ¥ 11,434 ¥ 15,452


(Millions of yen)

2013 2014 2015Cash flows from investing activities

Decrease (increase) in time deposits ¥ 357 ¥ 79 ¥ (256)Purchase of property, plant and equipment (2,121) (3,713) (2,948)Proceeds from sales of property, plant

and equipment 218 667 755Purchase of intangible assets (380) (1,201) (2,771)Proceeds from sales of intangible assets — 3 37Purchase of securities (31,004) (147,430) (1,621)Proceeds from sales of securities 36 64 94Proceeds from redemption of securities 35,052 147,453 10Purchase of investment securities (117) (1) (1,398)Proceeds from sales of investment securities 437 1,022 38Proceeds from redemption of investment securities — 4 1Purchase of treasury shares of subsidiaries — (494) (0)Proceeds from sales of shares of subsidiaries resulting in

change in scope of consolidation — 431 19Purchase of shares of subsidiaries resulting in change in

scope of consolidation (6,678) (14,662) (34,436)Proceeds from purchase of shares of subsidiaries

resulting in change in scope of consolidation 197 — —Proceeds from transfer of business — — 27,327Proceeds from acquisition of business 40,766 — —Net cash provided by (used in) investing activities 36,764 (17,775) (15,148)

Cash flows from financing activitiesIncrease in notes discounted 6,447 7,356 7,073Decrease in notes discounted (6,724) (6,682) (7,021)Increase in short-term loans payable 3,817 5,761 10,986Decrease in short-term loans payable (6,460) (4,593) (10,151)Proceeds from long-term loans payable 7,293 5,543 17,004Repayments of long-term loans payable (6,533) (28,668) (32,642)Proceeds from issuance of bonds — — 300Redemption of bonds (33) — (4,742)Proceeds from issuance of common shares — 96,602 —Repayments of lease obligations — (105) (176)Proceeds from sales and leasebacks — 40 86Proceeds from disposal of treasury shares 0 0 0Purchase of treasury shares (0) (2) (0)Proceeds from exercise of share options 124 135 28Cash dividends paid (366) (839) (1,180)Cash dividends paid to minority shareholders (6) (83) (158)Net cash provided by (used in) financing activities (2,441) 74,464 (20,593)

Effect of exchange rate change on cash and cash equivalents 1,090 6,938 7,000

Net increase (decrease) in cash and cash equivalents 44,792 75,061 (13,288)Cash and cash equivalents at beginning of period 9,410 56,288 131,349Increase in cash and cash equivalents resulting from

share exchange 2,085 — —Cash and cash equivalents at end of period ¥ 56,288 ¥ 131,349 ¥118,060


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Financial Data of Principal Overseas Subsidiaries

JT Chinae Savings Bank Co., Ltd.

(Millions of yen)

As of Mar. 31, 2014 As of Mar. 31, 2015 As of Jun. 30, 2015

AssetsCash and deposits ¥45,227 ¥ 27,088 ¥ 32,179Loans 46,701 120,342 115,996Allowance for doubtful accounts (3,990) (8,012) (8,029)Securities 787 2,574 17,720Property, plant and equipment 761 601 572Other assets 5,843 11,991 11,565

Total assets 95,329 154,584 170,003Liabilities

Deposits 77,142 141,886 156,290Other 2,207 4,040 4,314

Total liabilities 79,349 145,926 160,604Net assets

Shareholders’ equity 14,247 5,440 6,143Capital stock 5,061 5,061 5,061Capital surplus 7,285 5,181 5,181Retained earnings 1,900 (4,801) (4,098)

Other 1,732 3,218 3,256Total net assets 15,979 8,658 9,399Total liabilities and net assets ¥95,329 ¥154,584 ¥170,003

Balance Sheets

(Millions of yen)

FY2014 FY2015 FY2016 1Q

Operating revenueInterest on loans ¥ — ¥ — ¥ —Banking business revenue 12,392 13,614 5,141Gain on bad debts recovered — — —Other operating revenue — — —

Total operating revenue 12,392 13,614 5,141Operating expenses 4,630 5,688 1,445Operating gross profit 7,762 7,926 3,695Selling, general and administrative expenses

Expenses related to bad debts (504) 6,951 898Provision of allowance for doubtful accounts (1,085) 6,951 898Bad debts expenses 581 — —Provision for loss on guarantees — — —

Personnel expenses 2,335 2,519 736Other selling, general and administrative expenses 2,986 4,526 1,367

Total selling, general and administrative expenses 4,817 13,996 3,001Operating income (loss) 2,944 (6,070) 694Non-operating income 4 24 10Non-operating expenses 10 0 0Ordinary income (loss) 2,939 (6,046) 705Extraordinary income — — 0Extraordinary losses 273 655 2Net income (loss) ¥ 2,665 ¥ (6,702) ¥ 702

Statements of Income

The fi scal year ended March 2014 was a 15-month accounting period because of a change in the bank’s fi scal year-end.


(Millions of yen)


AssetsCash and deposits ¥— ¥22,237 ¥15,222Loans — 25,692 28,332Allowance for doubtful accounts — (1,512) (1,542)Securities — 186 187Property, plant and equipment — 48 42Other assets — 835 798

Total assets — 47,486 43,039Liabilities

Deposits — 38,195 33,611Other — 1,210 1,272

Total liabilities — 39,405 34,883Net assets

Shareholders’ equity — 8,029 8,052Capital stock — 10,682 10,682Capital surplus — — —Retained earnings — (2,653) (2,629)

Other — 51 104Total net assets — 8,080 8,156Total liabilities and net assets ¥— ¥47,486 ¥43,039

Balance Sheets

(Millions of yen)

FY2014 FY2015 FY2016 1Q

Operating revenueInterest on loans ¥— ¥ — ¥ —Banking business revenue — 589 905Gain on bad debts recovered — — —Other operating revenue — — —

Total operating revenue — 589 905Operating expenses — 189 290Operating gross profit — 400 614Selling, general and administrative expenses

Expenses related to bad debts — (203) 212Provision of allowance for doubtful accounts — (203) 212Bad debts expenses — — —Provision for loss on guarantees — — —

Personnel expenses — 139 195Other selling, general and administrative expenses — 112 159

Total selling, general and administrative expenses — 48 566Operating income — 352 48Non-operating income — 0 2Non-operating expenses — 0 1Ordinary income — 352 49Extraordinary income — — —Extraordinary losses — — —Net income ¥— ¥ 344 ¥ 23


JT Savings Bank Co., Ltd.

Figures for the fi scal year ended March 2015 are the results from February, when the bank became a Group subsidiary.


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(Millions of yen)


AssetsCash and deposits ¥— ¥ 1,700 ¥ 4,733Loans — 44,649 42,803Allowance for doubtful accounts — (1,504) (1,049)Securities — — —Property, plant and equipment — 95 81Other assets — 1,151 820


Loans payable and bonds payable — 26,392 28,632Other — 6,505 2,623


Shareholders’ equity — 13,193 16,100Capital stock — 11,739 11,739Capital surplus — — —Retained earnings — 1,453 4,360

Other — — 32Total net assets — 13,193 16,132Total liabilities and net assets ¥— ¥46,091 ¥47,388

Balance Sheets

(Millions of yen)

FY2014 FY2015 FY2016 1Q

Operating revenueInterest on loans ¥— ¥— ¥ 772Banking business revenue — — —Gain on sales of receivables — — 4,901Other operating revenue — — 156

Total operating revenue — — 5,829Operating expenses — — 534Operating gross profit — — 5,294Selling, general and administrative expenses

Expenses related to bad debts — — 458Provision of allowance for doubtful accounts — — 458Bad debts expenses — — —Provision for loss on guarantees — — —

Personnel expenses — — 381Other selling, general and administrative expenses — — 548

Total selling, general and administrative expenses — — 1,387Operating income — — 3,907Non-operating income — — 155Non-operating expenses — — 200Ordinary income — — 3,862Extraordinary income — — 1Extraordinary losses — — 3Net income ¥— ¥— ¥2,906


JT Capital Co., Ltd.


(Millions of yen)


AssetsCash and deposits ¥ 563 ¥ 640 ¥ 734Loans 24,649 10,486 10,602Allowance for doubtful accounts (3,896) (3,781) (3,854)Securities — 10,342 6,782Property, plant and equipment 56 56 53Other assets 1,770 1,695 1,905

Total assets 23,142 19,438 16,222Liabilities

Loans payable and bonds payable 11,982 6,438 2,462Other 715 85 650

Total liabilities 12,697 6,523 3,112Net assets

Shareholders’ equity 10,283 11,369 11,483Capital stock 833 833 833Capital surplus 2,487 3,255 3,255Retained earnings 6,963 7,281 7,394

Other 162 1,546 1,627Total net assets 10,445 12,915 13,110Total liabilities and net assets ¥23,142 ¥19,438 ¥16,222

Balance Sheets

(Millions of yen)

FY2014 FY2015 FY2016 1Q

Operating revenueInterest on loans ¥— ¥2,448 ¥ 99Banking business revenue — — —Gain on bad debts recovered — 149 39Other operating revenue — 261 374

Total operating revenue — 2,858 512Operating expenses — 354 86Operating gross profit — 2,503 426Selling, general and administrative expenses

Expenses related to bad debts — 1,099 35Provision of allowance for doubtful accounts — 1,099 35Bad debts expenses — — —Provision for loss on guarantees — — —

Personnel expenses — 616 129Other selling, general and administrative expenses — 496 129

Total selling, general and administrative expenses — 2,211 293Operating income — 292 132Non-operating income — 28 12Non-operating expenses — 1 0Ordinary income — 319 144Extraordinary income — 104 —Extraordinary losses — 6 0Net income ¥— ¥ 318 ¥113


TA Asset Management LLC



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(Millions of yen)


AssetsCash and deposits ¥— ¥ 30,359 ¥ 17,411Loans — 76,089 73,105Allowance for doubtful accounts — (13,060) (11,487)Securities — 15,118 21,296Property, plant and equipment — 1,985 1,856Other assets — 12,524 10,411


Deposits — 107,432 96,793Other — 5,693 6,499


Shareholders’ equity — 8,823 9,097Capital stock — 102,074 104,834Capital surplus — 2,021 2,021Retained earnings — (95,273) (97,758)

Other — 1,067 203Total net assets — 9,890 9,300Total liabilities and net assets ¥— ¥123,015 ¥112,592

Balance Sheets

(Millions of yen)

FY2014 FY2015 FY2016 1Q

Operating revenueInterest on loans ¥— ¥— ¥ —Banking business revenue — — 3,185Gain on sales of receivables — — —Other operating revenue — — —

Total operating revenue — — 3,185Operating expenses — — 2,792Operating gross profit — — 393Selling, general and administrative expenses

Expenses related to bad debts — — 1,382Provision of allowance for doubtful accounts — — 1,382Bad debts expenses — — —Provision for loss on guarantees — — —

Personnel expenses — — 991Other selling, general and administrative expenses — — 415

Total selling, general and administrative expenses — — 2,788Operating income (loss) — — (2,395)Non-operating income — — 25Non-operating expenses — — 55Ordinary income (loss) — — (2,425)Extraordinary income — — 0Extraordinary losses — — —Net income (loss) ¥— ¥— ¥(2,485)


PT Bank JTrust Indonesia Tbk.

Figures as of June 2015 and for the quarter ended June 2015 were based on the fi nancial statements for the year ended March 2015, which were adjusted for consolidation, refl ecting material transactions for the April to June 2015 period.


Bank JTrust Indonesia’s Key Financial Indices

Assets

(Trillions of IDR)

2009 2010 2011 2012 2013 2014

20

15

10

5

0

6.9

10.0

0.5 0.7 1.0 1.2 1.3 1.0

12.1

13.9 13.2

11.6

7.5

10.7

13.1

15.2

12.6

14.5 11.0%

68.4%

Asset CAGR2009–2014

Asset growth2009–2014

Liabilities Net assets

Loans and NPL Ratio

(Trillions of IDR) (%)

2009 2010 2011 2012 2013 2014

16

12

8

4

0

12

9

6

3

0

4.8

9.5

6.3

4.8

9.3

4.5

3.2

7.8

5.5

3.6

11.1 11.1 10.0%

61.3%

Loan CAGR2009–2014

Loan growth2009–2014

Loans NPL ratio (after deduction of allowance for doubtful accounts) (right axis)

Deposits and LDR Ratio

(Trillions of IDR)

2009 2010 2011 2012 2013 2014

16

12

8

4

0

100

75

50

25

0

5.9

81.7

8.9

83.9

11.0

82.8

13.4

96.3

70.9 11.1 11.5 71.1 13.1%

85.3%

Deposit CAGR2009–2014

Deposit growth2009–2014

(%)

Deposits LDR ratio (right axis)

Source: Bank Mutiara’s Annual Report 2013 and 2014



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Corporate Information

Corporate Profi le (As of March 31, 2015)

Trade name: J Trust Co., Ltd.

Capital: ¥53,604 million

Established: March 1977

Headquarters: Toranomon First Garden, 1-7-12 Toranomon, Minato-ku, Tokyo 105-0001, Japan

Phone: +81-3-4330-9100 (main)

Type of business entity: Holding company

Number of employees: 3,986 (consolidated)

Major Subsidiaries (As of July 31, 2015)

Name EstablishedCapital

(Millions of yen)Percentage of voting rights Principal business


Nihon Hoshou Co., Ltd. Mar 1970 95 100% Credit guarantee services

Partir Servicer Co., Ltd. Aug 2007 500 100% Collection of accounts receivable

J TRUST Card Co., Ltd. Apr 1963 90 100%Credit and consumer credit services


JT Chinae Savings Bank Co., Ltd. Aug 20125,061

(KRW68.9 billion)100% Banking business

JT Savings Bank Co., Ltd. Dec 200610,798

(KRW99.9 billion)100% Banking business

JT Capital Co., Ltd. Jun 200911,739

(KRW108 billion)100%

Installment loan and leasing business

TA Asset Management LLC Jun 2006833

(KRW8.7 billion)100% Collection of accounts receivable


PT Bank JTrust Indonesia Tbk. Dec 2004104,834

(IDR10.8 trillion)99.997% Banking business

PT JTRUST INVESTMENTS INDONESIA

Jun 2015480

(USD4 million)99%

Collection of accounts receivable, real estate business

General entertainment business

ADORES, Inc. (AD) Dec 1967 4,405 42.91%Amusement facilities operation business

BREAK Co., Ltd. Feb 2007 75 AD 100%Manufacturing and sales of amusement machine toys


Keynote Co., Ltd. Jul 1996 30 AD 100%Real estate sales, brokerage and renovation of existing housing

ADORES, Inc. Dec 1967 4,405 42.91% Property asset business

Other business

JTRUST ASIA PTE. LTD. Oct 201316,315

(SGD200 million)100%

Investment business and management and support business for invested companies

Keynote Co., Ltd. Jul 1996 30 AD 100%Commercial facility construction business


Investor InformationAs of March 31, 2015

Share Information

Number of authorized shares: 240,000,000

Number of outstanding shares: 118,589,354

Number of shareholders: 18,609

Name Number of shares held Shareholding ratio (%)

Nobuyoshi Fujisawa 23,009,372 19.5

Taiyo Fund, L. P. 10,308,900 8.7

NLHD Co., Ltd. 7,439,000 6.3

FUJISAWA PTE. LTD. 6,954,372 5.9

Japan Trustee Services Bank, Ltd. (trust account) 3,961,800 3.4

The Master Trust Bank of Japan, Ltd. (trust account) 3,095,800 2.6

THE SAIKYO BANK, LTD. 2,890,000 2.4

The Resolution and Collection Corporation 2,640,000 2.2

STATE STREET BANK AND TRUST COMPANY 505019 2,576,600 2.2

TAIYO HANEI FUND, L. P. 2,533,400 2.1

Note: The shareholding ratio is based on the number of outstanding shares excluding 409,540 treasury shares.

Major Shareholders (Top 10 shareholders)

Stock listing: Tokyo Stock Exchange, Second Section

Local code: 8508

Shareholder registry administrator and special account manager:

Mitsubishi UFJ Trust and Banking CorporationSecurities Agency Division 7-10-11 Higashisuna, Koto-ku, Tokyo 137-8081, JapanPhone: 0120-232-711 (domestic toll-free)

Accounting auditor: Hibiki Audit Corporation

Contact: Public Relations & Investor Relations Division, Corporate Planning DepartmentJ Trust Co., Ltd. Toranomon First Garden, 1-7-12 Toranomon, Minato-ku, Tokyo 105-0001, JapanPhone: +81-3-4330-9100 (main)

Share Ownership

Website

Financial institutions: 15,599,300 (13.2%)Other companies: 8,756,072 (7.4%)

Financial instruments business operators: 2,579,875 (2.2%)Foreign companies, etc.: 39,848,860 (33.7%)

Individuals and others: 51,395,707 (43.5%)

J Trust’s latest fi nancial reports and news releases are available on the Investor Relations website:

http://www.jt-corp.co.jp/en/ir/


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J Trust Co., Ltd.

Toranomon First Garden, 1-7-12 Toranomon, Minato-ku, Tokyo 105-0001, Japan

+81-3-4330-9100 (main)

Printed in Japan

leading to new horizons - jトラスト株式会社 · pt bank mutiara tbk. became a j trust...

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