the first half of fiscal year 2014 · highlight for the first half fy 2014. 3 . efforts toward...

Copyright(C)2013 JTRUST Co.,Ltd. All Rights Reserved.

The First Half of Fiscal Year 2014

Earnings Presentation

November 26, 2013

SPONSORED BY

J Trust Co., Ltd.

Copyright(C)2013 JTRUST Co.,Ltd. All Rights Reserved. 2

First Half of FY 2014 Overview of Consolidated Financial Results


Highlight for the First Half FY 2014

3

Efforts toward Business Growth May ~ July 2013

June 2013

August 2013 Expanded the number of banks in tie-up with the Group pertaining

to credit guarantee business • Commenced operation tie-up with Tomato Bank (Okayama prefecture, Japan)

making up a total of 7 regional banks in tie up.

Conducted purchase of accounts receivable in attempt to expand Chinae Savings Bank’s assets.

• Acquired approx. 15.3 Billion Yen of consumer loans from HK Savings Bank • Loans made by Chinae Savings Bank reached 51.6 Billion Yen (September 30)

Procured approx. 97.7 Billion Yen of funds by the Rights Issue • Outstanding shares: 62,753,624 → 117,747,186 (March → September) • Shareholders possessing share unit: 7,098 → 21,008 (March → September)


Consolidated Financial Results for the First Half of FY 2014

Comparison of Forecast and Actual Results


First Half of FY 2014 Comparison of Forecast and Actual Result

5

Ｐｏｉｎｔ

Unit: 100 Million Yen

315 288

0

50

100

150

200

250

300

35030 31

25 22

16

11

0

5

10

15

20

25

30

35

Operating Revenue Operating Income Ordinary Income Net Income

Initial forecast Actual results for First Half of FY 2014


Forecast Result Difference

315 288 △ 27 Operating Revenue

First Half of FY 2014 Difference between Forecast and Actual Result for Operating Revenue

6

Point

Unit : 100 Million Yen

Main breakdown of Operating Revenue Forecast Result Difference Interest on loans 16 16 0 Collection of purchased receivables 13 12 △ 1 Installment payment paying for commission 41 39 △ 2 Guarantee commission received 12 11 △ 1 Other financial revenue 15 13 △ 2 Gain on bad-debts recovered 33 24 △ 9 Real estate sales 19 20 1 Other financial revenue (design & construction, etc.) 23 16 △ 7 Amusement sales 84 87 3 Operating revenue of banking business 55 46 △ 9



7

Point

Factors for difference



8

Point




9

Point


Debts overdue more than 6 months of less than 100 Million Won (approx. 9 Million Yen) including overdue debts with different companies as of February 2013. As much as 50% of loans receivable are exempt and the rest is to be repaid to the fund.

Credit recovery fund


Operating Expenses – total 133 124 9 SG&A – total 151 141 10

Personnel expenses 56 55 1 other SG&A 65 54 11 Bad-debt expenses 30 32 △ 2

First Half of FY 2014 Difference between Forecast and Actual Result for Operating Income

10

Point



Operating Revenue 315 288 △ 27

Operating Income 30 22 △ 8 Operating Revenue △ 2.7 Billion Yen

Operating expenses ＋900 Million Yen

Other SG&A ＋1 Billion Yen

Personnel expenses

＋100 Million Yen

Bad-debt expenses △ 200 Million Yen

Operating Income △ 800 Million Yen

Other SG&A ＋1.1 Billion Yen



11

Point


16

24

0

5

10

15

20

25

30

1.9 Billion Yen of Allowance for Nonperforming Loans

Recorded by Chinae Savings Bank


Forecast Result



12

Ｐｏｉｎｔ




13

Point

Forecast Result

Bad-Debt Expenses 8 9

Chinae Savings Bank 6


Factor for difference



14

Point


Bad-Debt Expenses 30 32 △ 2 Provision of allowance for nonperforming loans 16 24 △ 8 Bad-debt expenses 8 9 △ 1 Provision for loss on interest repayment 5 △ 2 7 Provision for loss on guarantees 1 1 0



First Half of FY 2014 Difference between Forecast and Actual Result for Ordinary Income and Net Income

15

Point



Operating Income 30 22 △8

Non-operating income (dividends received, etc.) 2 6 4 Non-operating expenses (pertaining to the Rights Issue, etc.) 1 12 △11

Ordinary Income 31 16 △15 Extraordinary income 0 1 1 Extraordinary loss 1 1 0 Income taxes 2 1 1 Minority interests 2 4 △2

Net Income 25 11 △14


First Half of FY 2014 Breakdown of Balance by Product for Finance Business

16

Point

16

182

481

331

482

16

152

429

348

516

0

100

200

300

400

500

600 March 31, 2013 September 30, 2013


Accumulation of loans balance has been difficult, and collection of Existing loans proceeded well.

Purchase volume remained flat. Volume of cash advances decreased because of smooth collection.

Minor increase by the Group’s ordinary operation

Increase was due to loans receivable purchased from HK Savings Bank.

Loans by banking business

Operating loans (domestic & overseas)

Commercial notes Advances paid-installment

Credit guarantee


Equity capital Capital adequacy ratio

294 318

1,892

2,991

0

500

1,000

1,500

2,000

2,500

3,000

3,500

First Half of FY 2014 Total Assets and Capital Adequacy Ratio

17

Point

Unit: 100 Million yen

2,187

3,310

636

1,628

29.1%

49.2%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

Unit: 100 Million yen

Current assets Noncurrent assets

March 2013 September 2013 March 2013 September 2013


Cash out amount Number of refund claims

First Half of FY 2014 Excess Interest Refund Claim Problem

18

505 525

509

453

576 591

450

357

441

322

793 762 767

728

602 542

639 561

633 656

603

558 487 455

570

528 436

425 418 481

591 598 541

585

510 518

0

100

200

300

400

500

600

700

800

900

0

100

200

300

400

500

600

700

10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9

Transition in the number of refund claims and cash-out amount

Point

Unit: Millions of Yen

Unit: Number

2013 2012 2011


Delayed Disclosure of Financial Forecast for the Full-Year Ended March 31, 2014


Delayed Disclosure of Financial Forecast for the Full-Year Ended March 31, 2014

20

Point


■Disclaimer This document contains statements concerning future business results, targets, and

plans of the J Trust Group. These statements are based on information currently available to the Group and are stated herein on the basis of the outlook at the time this document was prepared. These statements may contain risk and uncertainties. Please note that future business results may differ from targets for reasons such as changes in economic climate and business environment.

In addition, earnings presentation as well as this document were prepared for the purpose of providing information to help your understanding of J Trust. It is not intended to solicit investment in securities issued by J Trust.

All figures in this document are rounded off to the nearest million yen, therefore difference in the total number may arise.

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