Copyright(C)2018 JTRUST Co.,Ltd. All Rights Reserved.

JTrust Olympindo

December 2018

Multi Finance

J Trust Co., Ltd.

1

１．Key Points

22

Key Points

• J Trust acquired 60% of shares of Olympindo Multi Finance, a multi-finance company. JTrust Olympindo Multi Finance（hereafter, ”JTO”) became a consolidated subsidiary in October 2018.

• In addition to used auto loans, JTO has added new services such as farm equipment loans and multipurpose loans.

• Through a joint finance arrangement with Bank J Trust Indonesia, JTO will pursue a strategy to expand its business through stable funding and improve profit margin through better capital efficiency.

3

２．Current Situation and Future Initiatives

44

Previously, the funding environment had been degrading across the entire industry.

9.40%

5.76%

8.17%

11.11%10.03%

13.12%12.31%

7.69%

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

15/01 15/07 16/01 16/07 17/01 17/07 18/01 18/07

Cost of Funds & Market Interest Rate

3 year govt. bonds JTO All finance companies

Sources：Compiled by J Trust using data from Bloomberg

55

The performance declined up until December 2017 under the weak business environment.

24,644 25,259

17,978

23,599

11,948

1.49% 1.45% 1.13% 0.97%0.39%

9.60%

8.28%

5.86% 6.12%

2.51%

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

0

5,000

10,000

15,000

20,000

25,000

30,000

2013/12 2014/12 2015/12 2016/12 2017/12

Past Results of Olympindo Multi FinanceOperating profit ROA ROEUnit: 10 million IDR

Reference rate: 1 IDR＝0.0079 JPY（Current rate as of November 30th, 2018）

Results from FY 12/2015 onward have been completely audited.

66

New contracts increased from around the time that JTO became J Trust’s subsidiary.

19,100

29,970

19,769

33,612

51,860 52,152

55,696

230

332

212

359

421 427

519

0

100

200

300

400

500

600

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

2018/04 2018/05 2018/06 2018/07 2018/08 2018/09 2018/10

Status of Recent New Loans at Olympindo Multi FinanceMonetary amount Number of loansUnit: 10 million IDR Number of loans

77

Enhancing products and services

• In addition to used auto loans, originate new auto loans in partnership with TATA

• Reopen deals with dealers that JTO had become distant from, especially large-scale dealers

• Offer competitive services through reduced screening time

• Begin farm equipment financing in partnerships with Kubota, YANMAR and KIOTI

• Consider offering home remodeling and educational loans

8

Channel and Product Strategies • Shift to large-scale automobile dealers in major cities• Center new auto loans on commercial vehicles, while centering

used auto loans for individual customers• Shift target of used auto loans to models produced within the past

ten years• For farm equipment loans, expand branch network through low-

cost Point of Sales. Cost Reduction

• Improve efficiency of administrative expenses by expanding the size of business, while maintaining number of employees

• Improve capital efficiency utilizing joint finance arrangement with Bank J Trust Indonesia

8

Improving profit margin

9

Strengthening collections • Concentrate collection channels in call centers• Performance-oriented visit collection

Strengthening compliance• Task management with stronger discipline• Holding educational workshops• Send compliance officers to all branches

9

Improving profit margin Pt. 2

10

-1,000

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

-50

0

50

100

150

200

250

300

350

400

2018/12 2019/12 2020/12 2021/12 2022/12 2023/12

Operating Profit and Loans OutstandingJTO loan balance Portion of BJI joint finance Operating profit

10

Mid-term Plan (using local accounting standards)

Loans outstanding and credit costs may differ in IFRS due to accounting methods.

Unit: 1 billion IDRUnit: 1 billion IDR

1111

Improving capital efficiency through joint finance with Bank J Trust

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

0

500

1,000

1,500

2,000

2,500

2017/12 2018/12 2019/12 2020/12 2021/12 2022/12 2023/12

JTO Future Loan Balance and Equity RatioJTO loan balance Equity ratioUnit:1 billion IDR

1212

Mid-term Plan (using local accounting standards)

Loans outstanding and credit costs may differ in IFRS due to accounting methods.

-10.0%

-5.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

-50

0

50

100

150

200

250

300

2018/12 2019/12 2020/12 2021/12 2022/12 2023/12

JTO Annual Profit Plan and ROA & ROEAnnual Profit Contribution to J Trust ROA ROEUnit: 1 billion IDR

1313

Current Target and Total Assets, Profit and ROA compared with competitors

OTO Moter

Clipan Finance Indonesia

Andalan Finance Indonesia

Adira Multi Finance

Mandiri Tunas Finance

BCA Finance

Olympindo17/12

JTO 19/12

JTO 20/12

JTO 21/12

-2.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

-400 -200 0 200 400 600 800 1,000 1,200 1,400 1,600 1,800

Olympindo Compared to Competitors in the Same Industry

（Annual profit in billions of rupiah)

Source: Compiled by J Trust based on public data from each company

18.0%

（ROA）

14

3. Data

15

History and Summary of Business • 1974 Founder began business selling used automobiles• 1987 Through the establishment of a sales company which owns a

license for installment payments, founded Olympindo Multi Finance, which owns a license for multi-finance, in 1993

15

Summary of Business

Olympindo Multi Finance is incredibly well-known as a multi-finance company that finances used automobiles and one that has built strong relationships of trust with many used auto dealers through a network of over forty locations across Indonesia’s five main islands.

40 locations openedas of late March 2018

With short settlement periods and speedy credit and screening processes, the company has increased its profits while elevating its market share.

16

Comparison of Asset Based Profitability With Competitors 1

1.36% 1.49% 0.72% 0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

2015/12 2016/12 2017/12

Jtrust Olympindo Multi Finance

2.38% 2.73% 2.41% 0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

2015/12 2016/12 2017/12

OTO Motor Group

5.98% 4.20% 3.41% 0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

2015/12 2016/12 2017/12

Clipan Finance Indonesia

3.46% 6.46% 7.79%0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

2015/12 2016/12 2017/12

Adira Dinamika Multi Finance

Sources：Compiled by J Trust from online materials such as annual reports

General operating expenses Credit costs Interest expense Earnings before tax Leverage (X)

17

Comparison of Asset Based Profitability With Competitors 2

4.45% 4.03% 3.23% 0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

2015/12 2016/12 2017/12

Mandiri Tunas Finance

24.14% 22.02%26.63%

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

45.00%

2015/12 2016/12 2017/12

BCA Finance

Adira Dinamika Multi Finance Mandiri Tunas Finance BCA Finance% to operating assets 2015/12 2016/12 2017/12 2015/12 2016/12 2017/12 2015/12 2016/12 2017/12

General operating expenses 14.60% 11.70% 13.06% 6.34% 5.85% 5.47% 11.02% 11.58% 12.41%Credit costs 6.83% 6.22% 6.10% 3.13% 3.83% 3.06% 0.66% 0.53% 0.83%Interest expenses 6.09% 7.30% 6.59% 7.62% 8.27% 7.15% 5.24% 4.30% 3.14%Earnings before tax 3.46% 6.46% 7.79% 4.45% 4.03% 3.23% 24.14% 22.02% 26.63%Leverage (X) 6.36 5.55 5.13 7.85 7.74 8.34 3.12 2.81 2.17

Jtrust Olympindo OTO Moter G Clipan Finance Indonesia% to operating assets 2015/12 2016/12 2017/12 2015/12 2016/12 2017/12 2015/12 2016/12 2017/12

General operating expenses 8.53% 4.81% 5.85% 6.15% 6.33% 7.29% 2.67% 3.02% 3.53%Credit costs 2.64% 1.80% 2.61% 1.68% 1.93% 2.56% 2.75% 3.60% 3.37%Interest expenses 9.51% 8.97% 11.73% 6.51% 6.43% 5.90% 5.65% 4.92% 3.98%Earnings before tax 1.36% 1.49% 0.72% 2.38% 2.73% 2.41% 5.98% 4.20% 3.41%Leverage (X) 5.42 6.28 6.40 3.69 3.62 3.66 1.85 1.78 2.45

Sources：Compiled by J Trust from online materials such as annual reports

General operating expenses Credit costs Interest expense Earnings before tax Leverage (X)

1818

Position in the Multi-Finance Industry (Bubble Chart)

Astra Sedaya Finance

Federal International Finance

Central Java Power

Adira Dinamika Multi Finance

OTO MultiarthaToyota Astra Financial Services

DIPO Star Finance BFI Finance Indonesia

Mandiri Tunas Finance

Summit OTO Finance

Indomobil Finance Indonesia

BCA Finance

Olympindo FY03/2015

Olympindo FY03/2016Olympindo FY03/2017-2.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

-500 0 500 1,000 1,500 2,000 2,500 3,000

Size of Assets at Top Multi-Financing Companies and Position of Olympindo

（Annual profit in billions of rupiah）

※As of December 2017

Source: Compiled by J Trust using data from Biro Riset Infobank（Infobank Research Lab) Olympindo data listed following audit adjustment in March

14.0%

（ROA）

1919

Position in Multi-Finance Industry (Chart) ※ As of December 2017

No. Company name Net profit ROA Total AssetsUnit: 1 billion IDR

1 Astra Sedaya Finance 934 2.97% 31,478

2 Federal International Finance 1,806 6.14% 29,411

3 Central Java Power 2,239 7.75% 28,908

4 Adira Dinamika Multi Finance 1,009 3.65% 27,643

5 OTO Multiartha 452 1.97% 22,957

6 Toyota Astra Financial Services 351 1.58% 22,201

7 DIPO Star Finance 458 3.61% 12,679

8 BFI Finance Indonesia 798 6.40% 12,476

9 Mandiri Tunas Finance 335 2.94% 11,404

10 Summit OTO Finance 281 2.68% 10,495

11 Indomobil Finance Indonesia 90 0.96% 9,415

12 BCA Finance 1,139 13.97% 8,152

44 Olympindo Multi Finance 17 0.98% 1,727

Source：Data from Biro Riset Infobank（Infobank Research Lab)