Quarterly Securities Report · gather and acquire new customers by airing commercials featuring new...

Quarterly Securities Report

(The second quarter of the 43rd fiscal year)

ACOM CO., LTD.

Quarterly Securities Report

1. This document has been outputted and printed by adding a table of contents and page numbers

to the data contained in the quarterly securities report which has been submitted through the

usage of Electronic Disclosure for Investors’ NETwork (EDINET) that is stipulated in Article 27-30-

2 of the Financial Instruments and Exchange Act of Japan.

2. This document encloses at the end both the quarterly review report that has been attached to the

quarterly securities report submitted through the abovementioned method as well as the

confirmation which has been submitted at the same time as that of the abovementioned quarterly

securities report.

This document is a translation of the Second Quarter Securities Report (original text: Japanese)

submitted to the Prime Minister pursuant to Article 24-4-7 of the Financial Instruments and Exchange

Act. It does not bear any responsibility pertaining to the aforementioned Financial Instruments and

Exchange Act regarding the content of the English text. We recommend that the determination of the

authenticity of the content be based on the Japanese text of the Second Quarter Securities Report.

Contents

[Cover] .................................................................................................................................................................. 1

Part I Information on the Company ................................................................................................................... 2

I. Overview of the Company ......................................................................................................................... 2

1. Key Financial Data and Trends ......................................................................................................... 2

2. Description of Business .................................................................................................................... 3

II. Business Overview ................................................................................................................................... 4

1. Risks Related to Business ................................................................................................................. 4

2. Analyses of Consolidated Business Results, Financial Position and

Cash Flows by the Corporate Managers ........................................................................................... 4

3. Material Business Agreements, etc. ................................................................................................ 22

III. Information on the Filing Company ...................................................................................................... 23

1. Information on the Company’s Shares ............................................................................................ 23

2. Directors .......................................................................................................................................... 25

IV. Financial Information ............................................................................................................................ 26

1. Quarterly Consolidated Financial Statements ................................................................................. 27

2. Others .............................................................................................................................................. 42

Part II Information on Guarantors for the Filing Company ............................................................................. 43

1

[Cover]

[Document Submitted] Quarterly Securities Report (“Shihanki-Hokokusho”)

[Article of the Applicable Law Requiring Submission of This Document]

Article 24-4-7, Paragraph 1 of the Financial Instruments and Exchange Act of Japan

[Submitted to] Director, Kanto Local Finance Bureau

[Date of Submission] November 14, 2019

[Quarterly Accounting Period] Second Quarter of the 43rd Fiscal Year (from July 1, 2019, to September 30, 2019)

[Company Name] ACOM Kabushiki-Kaisha

[Company Name in English] ACOM CO., LTD. (the “Company”)

[Position and Name of Representative] Shigeyoshi Kinoshita, Chairman, President & CEO

[Location of Head Office] 1-1, Marunouchi 2-chome, Chiyoda-ku, Tokyo

[Phone No.] 03-5533-0811 (main)

[Contact for Communications] Akifumi Kinoshita, Chief General Manager of Treasury Department

[Nearest Contact] 1-1, Marunouchi 2-chome, Chiyoda-ku, Tokyo

[Phone No.] 03-5533-0811 (main)

[Contact for Communications] Akifumi Kinoshita, Chief General Manager of Treasury Department

[Place Where Available for Public Inspection]

Tokyo Stock Exchange, Inc. (2-1, Nihombashi Kabutocho, Chuo-ku, Tokyo)

2

Part I Information on the Company

I. Overview of the Company

1. Key Financial Data and Trends (Millions of yen, unless otherwise stated)

Fiscal period For the six months ended

September 30, 2018 For the six months ended

September 30, 2019 42nd fiscal year

Period of account From April 1, 2018

to September 30, 2018 From April 1, 2019

to September 30, 2019 From April 1, 2018 to March 31, 2019

Operating revenue 137,323 139,290 277,069

Ordinary profit 48,207 50,144 58,205

Profit attributable to owners of parent

39,839 45,098 37,781

Comprehensive income 38,833 51,743 40,643

Net assets 381,258 426,454 381,501

Total assets 1,291,495 1,265,097 1,301,908

Basic earnings per share (yen) 25.43 28.79 24.12

Diluted earnings per share (yen) ― ― ―

Shareholders’ equity ratio (%) 27.78 31.84 27.36

Net cash provided by (used in) operating activities 5,014 4,712 7,329

Net cash provided by (used in) investing activities (2,075) 8,434 (1,165)

Net cash provided by (used in) financing activities 5,699 (11,894) (12,573)

Cash and cash equivalents at the end of period 96,754 82,220 82,346

Fiscal period For the second quarter of the 42nd fiscal year

For the second quarter of the 43rd fiscal year

Period of account From July 1, 2018

to September 30, 2018 From July 1, 2019

to September 30, 2019 Basic earnings per share (yen) 13.32 11.76

(Notes) 1. Operating revenue is presented exclusive of consumption tax, etc. 2. Key financial data and trends of the Filing Company are not stated since the Filing Company has

prepared its quarterly consolidated financial statements. 3. “Diluted earnings per share” is not shown since there was no dilutive security.

3

2. Description of Business During the six months ended September 30, 2019, there was no material change in the businesses

conducted by the Company Group (the Company and its subsidiaries and affiliates). Changes in the status of the Company’s major subsidiaries and affiliates are as follows. (Overseas Financial Business)

During the first quarter ended June 30, 2019, the Company accepted cash offer from MUFG Bank, Ltd. and sold all holding shares of PT. Bank Nusantara Parahyangan, Tbk., a former consolidated subsidiary, on April 29, 2019. That company was excluded from the scope of consolidation of the Company following the above sales of shares.

As a result, the Company Group consisted of the Company, four subsidiaries and one affiliate as of September 30, 2019.

4

II. Business Overview

1. Risks Related to Business There were no significant events or conditions which may cast significant doubt about the going-concern

assumption, or other events having material impact on the Company’s operations, during the six months ended September 30, 2019.

There were no significant changes to the “Risks Related to Business” described in the Securities Report for the prior fiscal year.

2. Analyses of Consolidated Business Results, Financial Position and Cash Flows by the Corporate Managers (1) Analysis of business results

During the six months ended September 30, 2019, the Japanese economy is expected to maintain moderate economic recovery due in part to the various economic policies implemented by the government, while recovery in consumer spending and improvement in the employment and income environment continued. Meanwhile, the possibility of an economic downturn still remained due to uncertainty in the trend of overseas economies and policies and the impact of fluctuations in the financial and capital markets.

In the nonbank business sector, the market is gradually expanding while requests for interest repayment have steadily decreased. However, future trends need to be closely monitored on an ongoing basis, as requests for interest repayment are susceptible to the impacts of changes in the external environment.

In such an environment, the Company Group has upheld its management vision of “strive to become the leading company in personal loan market which provides prime satisfaction to the utmost number of customers and win their trust in return.” Under a medium-term management policy of “with expeditious reactions to environmental changes, ACOM will strive for sustainable growth and increasing corporate value, while creating services which exceed customers’ expectations” as set out in the medium-term management plan beginning in the current fiscal year, the Company Group will strive to expand its scope of business in the loan and credit card business, guarantee business and overseas financial business, which the Group has positioned as the three core business categories, while making efforts to contribute to sound growth of the market.

The consolidated business results for the six months ended September 30, 2019, reflects the exclusion of PT. Bank Nusantara Parahyangan, Tbk. (“Bank BNP”), a former consolidated subsidiary, from the scope of consolidation upon sales of all its shares held by the Company. Operating revenue increased to 139,290 million yen (up 1.4% year-on-year) primarily due to an increase in interest on operating loans of the Company and EASY BUY Public Company Limited (“EASY BUY”) in Kingdom of Thailand, in spite of a decrease in interest on loans of banking business due to the exclusion of Bank BNP from the scope of consolidation. On the other hand, operating expenses decreased to 88,478 million yen (down 1.0% year-on-year) primarily due to the exclusion of Bank BNP from the scope of consolidation. As a result, operating profit increased to 50,812 million yen (up 6.0% year-on-year) and ordinary profit increased to 50,144 million yen (up 4.0% year-on-year). Profit attributable to owners of parent increased to 45,098 million yen (up 13.2% year-on-year) due to the posting of 9,875 million yen in extraordinary income resulting from the sale of the shares of Bank BNP and the posting of 4,784 million yen in extraordinary loss primarily attributable to the write down of some equipment of the Company as well as the merger expenses incurred for the said company. Business results for each segment are as follows:

1) Loan and credit card business

In the domestic loan and credit card business, we made efforts to improve product/service functions, gather and acquire new customers by airing commercials featuring new media personalities, promote sales of credit cards (AC MasterCard) and maintain the soundness of loan portfolio. Accounts receivable - operating loans amounted to 836,904 million yen as of September 30, 2019 (up 2.9% year-on-year, up 1.8% from the prior fiscal year-end) and accounts receivable - installment amounted to 69,645 million yen (up 20.5% year-on-year, up 10.3% from the prior fiscal year-end).

As a result, the business segment’s operating revenue was 74,452 million yen (up 3.1% year-on-year) for the six months ended September 30, 2019, due primarily to increases in interest on operating loans, and operating profit was 26,152 million yen (up 1.9% year-on-year).

5

2) Guarantee business In the guarantee business, we worked on reasonable communication with existing partners to further

enhance our partnerships with them. The total balance of guaranteed receivables in the guarantee operation of the Company and MU Credit Guarantee Co., LTD. was 1,223,964 million yen as of September 30, 2019 (up 1.4% year-on-year, up 1.0% from the prior fiscal year-end).

As a result, the business segment’s operating revenue was 34,146 million yen (down 0.7% year-on-year) for the six months ended September 30, 2019, due primarily to a decrease in revenue from credit guarantee, whereas operating profit was 13,188 million yen (up 7.7% year-on-year), due mainly to a decrease in expenses related to bad debts under operating expenses.

3) Overseas financial business

In the overseas financial business, the loan business of EASY BUY in the Kingdom of Thailand has progressed steadily, resulting in increased amount of interest on operating loans. In the Republic of the Philippines, ACOM CONSUMER FINANCE CORPORATION launched a full-fledged business in July 2018. In the Republic of Indonesia, Bank BNP, a former consolidated subsidiary, was excluded from the scope of consolidation in April 2019 upon sales of all its shares held by the Company. Accounts receivable - operating loans as of September 30, 2019, amounted to 187,119 million yen (up 12.4% year-on-year, up 4.8% from the prior fiscal year-end) due primarily to an increase in the outstanding balance of operating loans at EASY BUY as well as currency impact.

As a result, operating revenue amounted to 28,118 million yen (up 1.0% year-on-year) for the six months ended September 30, 2019, due primarily to increases in interest on operating loans at EASY BUY, in spite of a decrease in interest on loans of banking business due to the exclusion of Bank BNP from the scope of consolidation, and operating profit was 11,080 million yen (up 14.4% year-on-year).

4) Loan servicing business

In the loan servicing business, IR Loan Servicing, Inc. has endeavored to strengthen its business structure and increase profitability amid intensified competition in the purchased receivables market.

As a result, the business segment’s operating revenue was 2,573 million yen (down 10.2% year-on-year) for the six months ended September 30, 2019, mainly due to a decrease in amount of collection from purchased receivables, whereas operating profit was 308 million yen (up 154.9% year-on-year), due mainly to a decrease in other general expenses under operating expenses.

(2) Analysis of financial position

Compared with the end of the prior fiscal year, total assets decreased by 36,811 million yen and net assets increased by 44,952 million yen as of September 30, 2019. These changes incorporate exclusion of former consolidated subsidiary, Bank BNP, from the scope of consolidation. Details of changes in assets, liabilities and net assets are as follows:

(Assets)

Current assets decreased by 28,837 million yen and noncurrent assets decreased by 7,974 million yen. Consequently, total assets decreased by 36,811 million yen. The breakdown of major changes in current assets is as follows: loans receivable of banking business (down 48,331 million yen), cash and deposits (down 3,325 million yen), accounts receivable - operating loans (up 23,612 million yen), and accounts receivable - installment (up 6,528 million yen). The breakdown of major decreases in noncurrent assets is as follows: investment securities (down 3,082 million yen), equipment (down 2,233 million yen), and deferred tax assets (down 1,740 million yen).

(Liabilities)

With regard to the liabilities account, changes in current and noncurrent liabilities were a decrease of 94,969 million yen and an increase of 13,205 million yen, respectively, resulting in a decrease of 81,763 million yen in total liabilities. The breakdown of major decreases in liabilities includes: deposits of banking business (down 52,319 million yen), provision for loss on interest repayment (down 16,992 million yen), and the outstanding balance of funds procured mainly in the form of loans and bonds payable (down 5,822 million yen).

6

(Net assets) In terms of net assets, shareholders’ equity increased by 43,532 million yen mainly due to an increase in

retained earnings, accumulated other comprehensive income increased by 3,037 million yen due to an increase in foreign currency translation adjustment, and non-controlling interests decreased by 1,616 million yen. As a result, total net assets increased by 44,952 million yen, and the shareholders’ equity ratio increased by 4.4 percentage points to 31.8%.

(3) Status of cash flows

Cash and cash equivalents (hereinafter, “funds”) as of September 30, 2019, decreased by 126 million yen (down by 8,328 million yen year-on-year) during the six months ended September 30, 2019, from the end of the prior fiscal year to 82,220 million yen. The change reflects the exclusion of Bank BNP, a former consolidated subsidiary, from the scope of consolidation. The changes in the respective cash flows and the reasons thereof are as follows..

(Net cash provided by (used in) operating activities)

With respect to net cash provided by operating activities, funds saw an increase of 4,712 million yen (down by 302 million yen year-on-year), mainly reflecting funds-increasing factors such as 55,235 million yen in profit before income taxes and an increase of 2,707 million yen in allowance for doubtful accounts, as well as funds-decreasing factors such as an increase of 18,894 million yen in accounts receivable - operating loans, a decrease of 16,992 million yen in provision for loss on interest repayment, 9,875 million yen in gain on sales of shares of subsidiaries and associates and an increase of 6,512 million yen in accounts receivable - installment.

(Net cash provided by (used in) investing activities)

With respect to net cash provided by investing activities, funds saw an increase of 8,434 million yen (up by 10,510 million yen year-on-year), reflecting funds-increasing factors such as proceeds from sales of shares of subsidiaries resulting in change in scope of consolidation (10,411 million yen), and funds-decreasing factors such as the purchase of intangible assets (1,038 million yen).

(Net cash provided by (used in) financing activities)

With respect to net cash used in financing activities, funds saw a decrease of 11,894 million yen (down by 17,593 million yen year-on-year). This was due primarily to the fact that the total amount of proceeds from fund procurement mainly in the form of loans and bonds payable was 8,603 million yen less than the repayments of loans payable and payments at maturity of bonds, as well as cash dividends paid (1,565 million yen).

(4) Business and financial issues to address

The six months ended September 30, 2019, saw no significant change in business and financial issues to address, or presented new issue that the Company needed to address.

(5) Research and development activities

Not applicable (6) Number of employees

<Consolidated companies> Compared with the end of the prior fiscal year, the number of employees in the overseas financial

business decreased by 1,430. This was mainly because the Company sold all holding shares of Bank BNP, which had been a consolidated subsidiary until the prior fiscal year, and thereby excluded that company from the scope of consolidation.

(7) Major equipment

Equipment subject to any significant change such as introduction, suspension, large-scale repair, retirement and sales during the six months ended September 30, 2019, was as follows.

(Impairment) The Company recognized impairment loss on equipment of idle assets. Details of impairment loss are stated in “Notes to Quarterly Consolidated Statement of Income *4” in

[Notes] under “1. Quarterly Consolidated Financial Statements” of “IV. Financial Information.”

7

(8) Consolidated operating results 1) Operating revenue by business segment

Business segment

For the six months ended September 30, 2018 (From April 1, 2018

to September 30, 2018)


to September 30, 2019) Amount

(Millions of yen) Proportion

(%) Amount


(%)

Financial service businesses

Japan

Loan business 68,263 49.7 69,827 50.1

Credit card business 3,945 2.9 4,624 3.3

Guarantee business 34,374 25.0 34,146 24.5

Loan servicing business

2,864 2.1 2,573 1.9

Others 41 0.0 0 0.0

Overseas

Loan business 24,267 17.7 26,247 18.9

Installment loan business

43 0.0 41 0.0

Banking business 3,521 2.6 1,829 1.3

Total 137,323 100.0 139,290 100.0

(Note) Category of business above applies the category of business stated in “Segments and related information” in [Notes] under “1. Quarterly Consolidated Financial Statements” of “IV. Financial Information.”

2) Transaction volume and receivables outstanding at the end of the period of the financial service business

segments (a) Transaction volume

Business segment




to September 30, 2019) Amount


(%) Amount


(%)

Japan

Loan business 185,932 64.8 194,252 66.7

Credit card business 21,037 7.3 24,368 8.4

Loan servicing business 1,368 0.5 1,338 0.5

Overseas

Loan business 52,847 18.4 61,448 21.1

Installment loan business 308 0.1 387 0.1

Banking business 25,546 8.9 9,489 3.2

Total 287,041 100.0 291,285 100.0

(Notes) 1. Category of business above applies the category of business stated in “Segments and related information” in [Notes] under “1. Quarterly Consolidated Financial Statements” of “IV. Financial Information.”

2. Details and transaction volume of the above financial service business segments are as follows: Loan business Provision of loans directly to customers. The scope of this segment’s transaction

volume is the amount of loans to customers. Credit card business

Provision of general financial services through the use of credit cards, based oncomprehensive credit administration. The scope of transaction volume is thetotal amount of credit extended for shopping through the use of credit cards.


The amount of purchased receivables.


Provision of financial services without using credit cards. Each transaction ofthis service involves customer screening and review. The scope of transactionvolume is the sum of credit amount and commission fees.

8

Banking business

Provision of loans directly to customers. The scope of this segment’s transaction volume is the amount of loans to customers. As Bank BNP was excluded fromthe scope of consolidation during the six months ended September 30, 2019, the transaction volume for the period Bank BNP was consolidated is stated for the six months ended September 30, 2019.

(b) Receivables outstanding

Business segment

Prior second quarter (As of September 30, 2018)

Current second quarter (As of September 30, 2019)

Prior fiscal year (As of March 31, 2019)

Amount (Millions of yen)

Proportion (%)


Proportion (%)


Proportion (%)

Japan

Loan business 813,730 74.3 836,935 75.8 821,976 73.3

Credit card business 57,794 5.3 69,645 6.3 63,137 5.6

Loan servicing business 10,357 0.9 9,432 0.9 9,435 0.8

Overseas

Loan business 166,451 15.2 187,106 16.9 178,452 15.9


531 0.0 623 0.1 603 0.1

Banking business 46,578 4.3 ― ― 48,331 4.3

Total 1,095,444 100.0 1,103,742 100.0 1,121,936 100.0

(Note) Category of business above applies the category of business stated in “Segments and related information” in [Notes] under “1. Quarterly Consolidated Financial Statements” of “IV. Financial Information.”

3) Number of outlets

Category Prior second quarter

(As of September 30, 2018) Current second quarter

(As of September 30, 2019) Prior fiscal year

(As of March 31, 2019)

Outlets 1,207 1,096 1,173

4) Number of customer accounts

Business segment Prior second quarter

(As of September 30, 2018) Current second quarter

(As of September 30, 2019) Prior fiscal year


Japan

Loan business 1,513,609 1,574,076 1,540,012

Credit card business 406,947 452,222 426,572

Loan servicing business 358,768 362,475 359,351

Overseas

Loan business 1,308,204 1,388,025 1,355,618

Installment loan business 12,359 13,639 12,699

Banking business 70,848 ― 72,463

(Notes) 1. Category of business above applies the category of business stated in “Segments and related information” in [Notes] under “1. Quarterly Consolidated Financial Statements” of “IV. Financial Information.”

2. The number of customer accounts by business segment shown above is as follows: Loan business Number of accounts with outstanding accounts receivable - operating

loans Credit card business Number of “MasterCard®” holders Loan servicing business Number of accounts with outstanding purchased receivables Installment loan business Number of contracts with outstanding accounts receivable -

installment Banking business Number of loan accounts with outstanding loans receivable of banking

business 5) Breakdown of accounts receivable - operating loans (a) By loan type

9

Loan type




Number of loan contracts

Proportion (%)

Outstanding balance

(Millions of yen)

Proportion (%)

Average contracted

interest rate (%)


Proportion (%)

Outstanding balance

(Millions of yen)

Proportion (%)

Average contracted

interest rate (%)


Proportion (%)

Outstanding balance

(Millions of yen)

Proportion (%)

Average contracted

interest rate (%)

Con

sum

er lo

ans

Unsecured loans (excluding housing loans)

2,819,736 99.9 974,567 99.4 17.46 2,960,349 99.9 1,019,324 99.5 17.52 2,893,695 99.9 995,223 99.5 17.53

Secured loans (excluding housing loans)

2,056 0.1 5,516 0.6 11.58 1,736 0.1 4,655 0.5 11.55 1,915 0.1 5,110 0.5 11.58

Housing loans ― ― ― ― ― ― ― ― ― ― ― ― ― ― ―

Subtotal 2,821,792 100.0 980,084 100.0 17.43 2,962,085 100.0 1,023,980 100.0 17.49 2,895,610 100.0 1,000,333 100.0 17.49

Com

mer

cial

loan

s Unsecured loans 3 0.0 3 0.0 15.00 3 0.0 3 0.0 15.00 3 0.0 3 0.0 15.00

Secured loans 18 0.0 93 0.0 10.16 13 0.0 57 0.0 7.70 17 0.0 91 0.0 8.90

Subtotal 21 0.0 97 0.0 10.35 16 0.0 61 0.0 8.13 20 0.0 95 0.0 9.13

Total 2,821,813 100.0 980,182 100.0 17.43 2,962,101 100.0 1,024,041 100.0 17.49 2,895,630 100.0 1,000,428 100.0 17.49

10

(b) By industry

Industry




Number of loan

contracts

Proportion

(%)

Outstanding balance

(Millions of

yen)

Proportion (%)

Number of loan

contracts

Proportion

(%)

Outstanding balance

(Millions of

yen)

Proportion (%)

Number of loan

contracts

Proportion

(%)

Outstanding balance

(Millions of

yen)

Proportion (%)

Agriculture, forestry

and fishery ― ― ― ― ― ― ― ― ― ― ― ―

Construction 5 0.0 18 0.0 4 0.0 17 0.0 5 0.0 17 0.0

Manufacturing 1 0.0 2 0.0 1 0.0 1 0.0 1 0.0 1 0.0

Electricity; gas; heat

supply; water supply ― ― ― ― ― ― ― ― ― ― ― ―

Information and

communications 1 0.0 4 0.0 ― ― ― ― 1 0.0 4 0.0

Transport and postal

services 1 0.0 4 0.0 1 0.0 4 0.0 1 0.0 4 0.0

Wholesale and retail 4 0.0 10 0.0 2 0.0 7 0.0 3 0.0 9 0.0

Finance and

insurance 1 0.0 3 0.0 1 0.0 3 0.0 1 0.0 3 0.0

Real estate, and

goods rental and

leasing

1 0.0 26 0.0 ― ― ― ― 1 0.0 26 0.0

Accommodation, and

food and beverage

services

2 0.0 12 0.0 2 0.0 11 0.0 2 0.0 11 0.0

Education and

educational support ― ― ― ― ― ― ― ― ― ― ― ―

Healthcare and

welfare 1 0.0 0 0.0 ― ― ― ― ― ― ― ―

Multiple services ― ― ― ― ― ― ― ― ― ― ― ―

Other services

(Does not fall under

any other category)

4 0.0 14 0.0 5 0.0 14 0.0 5 0.0 14 0.0

Individuals 2,821,792 100.0 980,084 100.0 2,962,085 100.0 1,023,980 100.0 2,895,610 100.0 1,000,333 100.0

Specified nonprofit

organizations ― ― ― ― ― ― ― ― ― ― ― ―

Others ― ― ― ― ― ― ― ― ― ― ― ―

Total 2,821,813 100.0 980,182 100.0 2,962,101 100.0 1,024,041 100.0 2,895,630 100.0 1,000,428 100.0

(Note) Commercial loans to sole proprietors are included in corresponding categories other than “Individuals.”

11

(c) By collateral type

Collateral





Proportion (%)


Proportion (%)


Proportion (%)

Securities ― ― ― ― ― ―

[Stocks included in the above]

[―] [―] [―] [―] [―] [―]

Credit ― ― ― ― ― ―

[Deposits included in the above]

[―] [―] [―] [―] [―] [―]

Merchandise ― ― ― ― ― ―

Real estate 5,551 0.6 4,694 0.5 5,143 0.5

Foundations ― ― ― ― ― ―

Others 58 0.0 19 0.0 58 0.0

Subtotal 5,610 0.6 4,713 0.5 5,201 0.5

Guarantee ― ― ― ― ― ―

Unsecured 974,571 99.4 1,019,328 99.5 995,226 99.5

Total 980,182 100.0 1,024,041 100.0 1,000,428 100.0

12

(d) By loan term

Loan term




Number of loan

contracts

Proportion

(%)

Outstanding

balance

(Millions of

yen)

Proportion

(%)

Number of loan

contracts

Proportion

(%)

Outstanding

balance

(Millions of

yen)

Proportion

(%)

Number of loan

contracts

Proportion

(%)

Outstanding

balance

(Millions of

yen)

Proportion

(%)

Uns

ecur

ed lo

ans

Revolving 2,681,451 95.0 922,358 94.1 2,803,818 94.6 967,412 94.5 2,748,225 94.9 942,685 94.2

Due within

1 year 893 0.0 117 0.0 11,124 0.4 310 0.0 3,615 0.1 185 0.0

Due after

1 year through

5 years

76,050 2.7 17,808 1.8 82,710 2.8 19,766 1.9 78,339 2.7 18,351 1.9

Due after

5 years through

10 years

42,947 1.5 20,499 2.1 48,193 1.6 21,254 2.1 47,278 1.6 21,995 2.2

Due after 10

years through

15 years

18,348 0.7 13,747 1.4 14,438 0.5 10,534 1.0 16,179 0.6 11,964 1.2

Due after 15

years through

20 years

44 0.0 34 0.0 61 0.0 43 0.0 56 0.0 39 0.0

Due after 20

years through

25 years

4 0.0 3 0.0 4 0.0 3 0.0 4 0.0 3 0.0

Due after

25 years 2 0.0 0 0.0 4 0.0 1 0.0 2 0.0 0 0.0

Subtotal 2,819,739 99.9 974,571 99.4 2,960,352 99.9 1,019,328 99.5 2,893,698 99.9 995,226 99.5

Sec

ured

loan

s

Revolving 1,578 0.1 4,060 0.4 1,329 0.1 3,416 0.3 1,472 0.1 3,767 0.4

Due within

1 year 8 0.0 26 0.0 3 0.0 2 0.0 5 0.0 13 0.0

Due after

1 year through

5 years 105 0.0 177 0.0 91 0.0 136 0.0 96 0.0 147 0.0

Due after

5 years through

10 years 219 0.0 442 0.1 178 0.0 374 0.1 201 0.0 413 0.0

Due after 10

years through

15 years 67 0.0 245 0.0 64 0.0 217 0.0 67 0.0 242 0.0

Due after 15

years through

20 years 19 0.0 82 0.0 14 0.0 78 0.0 17 0.0 81 0.0

Due after 20

years through

25 years 78 0.0 574 0.1 70 0.0 487 0.1 74 0.0 536 0.1

Due after

25 years ― ― ― ― ― ― ― ― ― ― ― ―

Subtotal 2,074 0.1 5,610 0.6 1,749 0.1 4,713 0.5 1,932 0.1 5,201 0.5

Revolving 2,683,029 95.1 926,419 94.5 2,805,147 94.7 970,828 94.8 2,749,697 95.0 946,453 94.6

Due within 1 year 901 0.0 144 0.0 11,127 0.4 312 0.0 3,620 0.1 198 0.0

Due after 1 year

through 5 years 76,155 2.7 17,986 1.8 82,801 2.8 19,903 1.9 78,435 2.7 18,499 1.9

Due after 5 years

through 10 years 43,166 1.5 20,942 2.2 48,371 1.6 21,629 2.1 47,479 1.6 22,408 2.2

Due after 10 years

through 15 years 18,415 0.7 13,992 1.4 14,502 0.5 10,752 1.1 16,246 0.6 12,206 1.2

Due after 15 years

through 20 years 63 0.0 117 0.0 75 0.0 122 0.0 73 0.0 120 0.0

Due after 20 years

through 25 years 82 0.0 578 0.1 74 0.0 491 0.1 78 0.0 540 0.1

Due after 25 years 2 0.0 0 0.0 4 0.0 1 0.0 2 0.0 0 0.0

Total 2,821,813 100.0 980,182 100.0 2,962,101 100.0 1,024,041 100.0 2,895,630 100.0 1,000,428 100.0

Average term per contract

― ― ―

(Note) “Average term per contract” is not calculated since revolving loan contracts are included in the table above.

13

6) Breakdown by funding sources

Funding sources, etc.




Outstanding balance

(Millions of yen)

Average interest rate

(%)

Outstanding balance

(Millions of yen)


(%)

Outstanding balance

(Millions of yen)


(%) Borrowings from financial institutions, etc.

456,153 1.11 445,455 0.85 440,933 0.96

Others 282,960 0.96 273,864 1.01 284,209 0.97

[Corporate bonds, CPs] [282,960] [0.96] [273,864] [1.01] [284,209] [0.97]

Total 739,113 1.05 719,320 0.91 725,142 0.96

Owners’ equity 527,817 ― 573,749 ― 542,754 ―

[Capital stock] [63,832] [―] [63,832] [―] [63,832] [―]

(Note) “Owners’ equity” was calculated by deducting total liabilities, the amount of non-controlling interests in the “net assets” section, and the planned amount of dividend from total assets, and then adding the total amount of reserves (including reserves under special laws).

7) Operating results of the Filing Company

(a) The number of outlets and customer accounts by business segment (i) The number of outlets and automated teller machines

Category Prior second quarter (As of September 30, 2018)



Outlets 1,033 983 1,000

Staffed outlets 22 22 22

Unstaffed outlets 1,011 961 978

Automatic contract corners [units] 1,033 locations [1,073]

983 locations [1,023]

1,000 locations [1,040]

ATMs 56,198 51,437 51,737

Proprietary 1,046 997 1,014

Tie-up 55,152 50,440 50,723

[Number of tie-up companies] [17] [16] [16]

(Note) In addition to the above 983 loan business outlets, based on the Money Lending Business Act, we registered automatic contract machines installed in staffed outlets (22 automatic contract corners (they stood at 22 as of September 30, 2018, and 22 as of March 31, 2019)), 6 automated teller machines installed outside outlets (6 as of September 30, 2018, and 6 as of March 31, 2019) and 1 service center (1 as of September 30, 2018, and 1 as of March 31, 2019) for the various applications and registration acceptance via automatic contract machines and other means as outlets.

(ii) Number of customer accounts

Business segment Prior second quarter (As of September 30, 2018)



Loan business 1,513,549 1,574,026 1,539,957

Credit card business 406,947 452,222 426,572

(Note) The number of customer accounts by business segment shown above is as follows: Loan business Number of accounts with outstanding accounts receivable - operating loans Credit card business Number of “MasterCard®” holders

14

(b) Operating revenue by business segment

Business segment





For the prior fiscal year (From April 1, 2018 to March 31, 2019)

Amount (Millions of

yen)

Proportion (%)

Amount (Millions of

yen)

Proportion (%)

Amount (Millions of

yen)

Proportion (%)

Loan business 68,263 67.3 69,827 67.7 136,674 67.1

Unsecured loans 67,938 67.0 69,510 67.4 136,046 66.8

Consumer 67,937 67.0 69,509 67.4 136,045 66.8

Commercial 0 0.0 0 0.0 0 0.0

Secured loans 325 0.3 317 0.3 628 0.3


Guarantee business 29,121 28.7 28,704 27.8 58,729 28.9

Others 74 0.1 34 0.0 78 0.0

Total 101,405 100.0 103,191 100.0 203,636 100.0

(c) Transaction volume and receivables outstanding at the end of the period for the financial service business

segments (i) Transaction volume

Business segment





For the prior fiscal year (From April 1, 2018 to March 31, 2019)

Amount (Millions of

yen)

Proportion (%)

Amount (Millions of

yen)

Proportion (%)

Amount (Millions of

yen)

Proportion (%)

Loan business

Unsecured loans 185,923 89.8 194,244 88.9 372,221 89.5

Consumer loans 185,923 89.8 194,244 88.9 372,221 89.5

Commercial loans ― ― ― ― ― ―

Secured loans 9 0.0 7 0.0 18 0.0

Subtotal 185,932 89.8 194,252 88.9 372,240 89.5


Total 206,970 100.0 218,620 100.0 415,764 100.0

(Note) Details and transaction volume of the above financial service business segments are as follows: Loan business Provision of loans by the Filing Company directly to customers. The scope of

this segment’s transaction volume is the amount of loans to customers. Credit card business Provision of general financial services through the use of credit cards, based

on comprehensive credit administration. The scope of transaction volume is the total amount of credit extended for shopping through the use of credit cards.

15

(ii) Receivables outstanding

Business segment




Amount (Millions of

yen)

Proportion (%)

Amount (Millions of

yen)

Proportion (%)

Amount (Millions of

yen)

Proportion (%)

Loan business

Unsecured loans 808,083 92.7 832,190 91.8 816,742 92.3

Consumer loans 808,079 92.7 832,187 91.8 816,738 92.3

Commercial loans 3 0.0 3 0.0 3 0.0

Secured loans 5,610 0.7 4,713 0.5 5,201 0.6

Subtotal 813,693 93.4 836,904 92.3 821,943 92.9


Total 871,488 100.0 906,549 100.0 885,081 100.0

(d) Increase/decrease and outstanding balance of accounts receivable - operating loans

(Millions of yen)

Item




Total amount

Unsecured loans

Secured loans

Total amount

Unsecured loans

Secured loans

Total amount

Unsecured loans

Secured loans

Beginning balance 803,365 797,288 6,077 821,943 816,742 5,201 803,365 797,288 6,077

Loans made during the period 185,932 185,923 9 194,252 194,244 7 372,240 372,221 18

Collection during the period 160,370 159,913 456 164,571 164,183 387 323,246 322,383 863

Transfer of claims on bankruptcy and reorganization, etc.

305 299 6 265 255 10 627 621 6

Write-off of bad debts during the period

14,928 14,915 13 14,455 14,356 98 29,787 29,763 24

Final balance 813,693 808,083 5,610 836,904 832,190 4,713 821,943 816,742 5,201

Average loans receivable 807,467 801,598 5,868 828,431 823,427 5,003 812,008 806,357 5,650

16

(e) Breakdown of accounts receivable - operating loans (i) By loan type

Loan type




Number of

loan contracts

Proportion

(%)

Outstanding

balance

(Millions of

yen)

Proportion

(%)

Average

contracted

interest

rate (%)

Number of

loan contracts

Proportion

(%)

Outstanding

balance

(Millions of

yen)

Proportion

(%)

Average

contracted

interest

rate (%)

Number of

loan contracts

Proportion

(%)

Outstanding

balance

(Millions of

yen)

Proportion

(%)

Average

contracted

interest

rate (%)

Con

sum

er lo

ans

Unsecured loans (excluding housing loans)

1,511,472 99.9 808,079 99.3 15.63 1,572,274 99.9 832,187 99.4 15.57 1,538,022 99.9 816,738 99.4 15.62

Secured loans (excluding housing loans)

2,056 0.1 5,516 0.7 11.58 1,736 0.1 4,655 0.6 11.55 1,915 0.1 5,110 0.6 11.58

Housing loans

― ― ― ― ― ― ― ― ― ― ― ― ― ― ―

Subtotal 1,513,528 100.0 813,596 100.0 15.60 1,574,010 100.0 836,843 100.0 15.55 1,539,937 100.0 821,848 100.0 15.60

Com

mer

cial

loan

s Unsecured loans

3 0.0 3 0.0 15.00 3 0.0 3 0.0 15.00 3 0.0 3 0.0 15.00

Secured loans

18 0.0 93 0.0 10.16 13 0.0 57 0.0 7.70 17 0.0 91 0.0 8.90

Subtotal 21 0.0 97 0.0 10.35 16 0.0 61 0.0 8.13 20 0.0 95 0.0 9.13

Total 1,513,549 100.0 813,693 100.0 15.60 1,574,026 100.0 836,904 100.0 15.55 1,539,957 100.0 821,943 100.0 15.60

17

(ii) By industry

Industry




Number of loan

contracts

Proportion

(%)

Outstanding

balance

(Millions of

yen)

Proportion

(%)

Number of loan

contracts Proportion

(%)

Outstanding

balance

(Millions of

yen)

Proportion

(%) Number of loan


(%)

Outstanding

balance

(Millions of

yen)

Proportion

(%)

Agriculture, forestry and fishery

― ― ― ― ― ― ― ― ― ― ― ―

Construction 5 0.0 18 0.0 4 0.0 17 0.0 5 0.0 17 0.0

Manufacturing 1 0.0 2 0.0 1 0.0 1 0.0 1 0.0 1 0.0

Electricity; gas; heat

supply; water supply ― ― ― ― ― ― ― ― ― ― ― ―

Information and

communications 1 0.0 4 0.0 ― ― ― ― 1 0.0 4 0.0

Transport and postal

services 1 0.0 4 0.0 1 0.0 4 0.0 1 0.0 4 0.0

Wholesale and retail 4 0.0 10 0.0 2 0.0 7 0.0 3 0.0 9 0.0

Finance and

insurance 1 0.0 3 0.0 1 0.0 3 0.0 1 0.0 3 0.0

Real estate, and

goods rental and

leasing

1 0.0 26 0.0 ― ― ― ― 1 0.0 26 0.0

Accommodation, and

food and beverage

services

2 0.0 12 0.0 2 0.0 11 0.0 2 0.0 11 0.0

Education and

educational support ― ― ― ― ― ― ― ― ― ― ― ―

Healthcare and

welfare 1 0.0 0 0.0 ― ― ― ― ― ― ― ―

Multiple services ― ― ― ― ― ― ― ― ― ― ― ―

Other services

(Does not fall under

any other category)

4 0.0 14 0.0 5 0.0 14 0.0 5 0.0 14 0.0

Individuals 1,513,528 100.0 813,596 100.0 1,574,010 100.0 836,843 100.0 1,539,937 100.0 821,848 100.0

Specified nonprofit

organizations ― ― ― ― ― ― ― ― ― ― ― ―

Others ― ― ― ― ― ― ― ― ― ― ― ―

Total 1,513,549 100.0 813,693 100.0 1,574,026 100.0 836,904 100.0 1,539,957 100.0 821,943 100.0

(Note) Commercial loans to sole proprietors are included in corresponding categories other than “Individuals.”

18

(iii) Breakdown of unsecured consumer loans receivable by consumers’ sex and age

Sex and age




Number of loan

contracts

Proportion

(%)

Outstanding

balance

(Millions of

yen)

Proportion

(%)

Number of loan


(%)

Outstanding

balance

(Millions of

yen)

Proportion

(%) Number of loan


(%)

Outstanding

balance

(Millions of

yen)

Proportion

(%)

Mal

e

18-19 years ― ― ― ― ― ― ― ― ― ― ― ―

20-29 287,146 19.0 120,502 14.9 313,931 20.0 129,157 15.5 300,824 19.6 124,440 15.2

30-39 269,902 17.9 159,344 19.7 274,238 17.4 161,876 19.5 270,684 17.6 159,581 19.5

40-49 252,883 16.7 181,360 22.4 250,474 15.9 179,758 21.6 250,592 16.3 179,468 22.0

50-59 178,821 11.8 137,271 17.0 183,518 11.7 140,887 16.9 180,096 11.7 138,215 16.9

60 years and older

117,724 7.8 60,247 7.5 120,159 7.7 62,517 7.5 119,256 7.7 61,720 7.6

Subtotal 1,106,476 73.2 658,726 81.5 1,142,320 72.7 674,196 81.0 1,121,452 72.9 663,426 81.2

Fem

ale

18-19 years ― ― ― ― ― ― ― ― ― ― ― ―

20-29 101,931 6.7 32,365 4.0 115,832 7.4 36,346 4.4 108,880 7.1 34,286 4.2

30-39 86,230 5.7 32,162 4.0 89,401 5.7 33,230 4.0 87,398 5.7 32,558 4.0

40-49 97,418 6.5 38,794 4.8 99,226 6.3 39,620 4.7 98,094 6.4 39,155 4.8

50-59 72,062 4.8 30,432 3.8 76,101 4.8 32,141 3.9 73,787 4.8 31,161 3.8

60 years and older

47,355 3.1 15,598 1.9 49,394 3.1 16,651 2.0 48,411 3.1 16,151 2.0

Subtotal 404,996 26.8 149,353 18.5 429,954 27.3 157,990 19.0 416,570 27.1 153,312 18.8

Total 1,511,472 100.0 808,079 100.0 1,572,274 100.0 832,187 100.0 1,538,022 100.0 816,738 100.0

(iv) By collateral type

Collateral accepted





Proportion (%)


Proportion (%)


Proportion (%)

Securities ― ― ― ― ― ―

[Stocks included in the above] [―] [―] [―] [―] [―] [―]

Credit ― ― ― ― ― ―

[Deposits included in the above] [―] [―] [―] [―] [―] [―]

Merchandise ― ― ― ― ― ―

Real estate 5,551 0.7 4,694 0.6 5,143 0.6

Foundations ― ― ― ― ― ―

Others 58 0.0 19 0.0 58 0.0

Subtotal 5,610 0.7 4,713 0.6 5,201 0.6

Guarantee ― ― ― ― ― ―

Unsecured 808,083 99.3 832,190 99.4 816,742 99.4

Total 813,693 100.0 836,904 100.0 821,943 100.0

19

(v) By loan amount

Loan amount




Number of loan

contracts

Proportion

(%)

Outstanding

balance

(Millions of

yen)

Proportion

(%)

Number of loan


(%)

Outstanding

balance

(Millions of

yen)

Proportion

(%) Number of loan


(%)

Outstanding

balance

(Millions of

yen)

Proportion

(%)

Uns

ecur

ed lo

ans

Due within 100,000 yen

194,586 12.9 12,417 1.5 203,222 12.9 12,790 1.5 198,519 12.9 12,605 1.6

Due over 100,000 yen through 300,000 yen

351,359 23.2 74,335 9.2 374,538 23.8 79,270 9.5 364,068 23.6 77,145 9.4

Due over 300,000 yen through 500,000 yen

508,189 33.6 219,914 27.0 529,218 33.6 228,883 27.3 515,811 33.5 222,960 27.1

Due over 500,000 yen

457,341 30.2 501,416 61.6 465,299 29.6 511,246 61.1 459,627 29.9 504,030 61.3

Subtotal 1,511,475 99.9 808,083 99.3 1,572,277 99.9 832,190 99.4 1,538,025 99.9 816,742 99.4

Sec

ured

loan

s

Due within 1 million yen

512 0.0 271 0.0 447 0.0 229 0.0 494 0.0 254 0.0

Due over 1 million yen through 5 million yen

1,324 0.1 3,463 0.4 1,096 0.1 2,873 0.4 1,213 0.1 3,178 0.4


199 0.0 1,337 0.2 173 0.0 1,162 0.1 189 0.0 1,270 0.1


39 0.0 538 0.1 33 0.0 448 0.1 36 0.0 498 0.1


― ― ― ― ― ― ― ― ― ― ― ―

Due over 100 million yen

― ― ― ― ― ― ― ― ― ― ― ―

Subtotal 2,074 0.1 5,610 0.7 1,749 0.1 4,713 0.6 1,932 0.1 5,201 0.6

Total 1,513,549 100.0 813,693 100.0 1,574,026 100.0 836,904 100.0 1,539,957 100.0 821,943 100.0

Average loans receivable per contract (Thousands of yen)

― ― 537 ― ― ― 531 ― ― ― 533 ―

Unsecured loans

― ― 534 ― ― ― 529 ― ― ― 531 ―

Secured loans

― ― 2,705 ― ― ― 2,694 ― ― ― 2,692 ―

20

(vi) By loan term

Loan term




Number of loan

contracts

Proportion(%)

Outstanding balance

(Millions of yen)

Proportion (%)

Number of loan

contracts

Proportion (%)

Outstanding balance

(Millions of yen)

Proportion (%)

Number of loan

contracts

Proportion (%)

Outstanding balance

(Millions of yen)

Proportion (%)

Uns

ecur

ed lo

ans

Revolving 1,412,400 93.3 761,428 93.6 1,469,063 93.3 786,920 94.0 1,435,749 93.2 770,159 93.7

Due within 1 year

864 0.1 116 0.0 1,005 0.1 125 0.0 978 0.1 142 0.0

Due after 1 year through 5 years

36,881 2.4 12,262 1.5 39,523 2.5 13,314 1.6 37,793 2.5 12,444 1.5

Due after 5 years through 10 years

42,932 2.9 20,489 2.5 48,179 3.1 21,245 2.5 47,264 3.1 21,987 2.7


18,348 1.2 13,747 1.7 14,438 0.9 10,534 1.3 16,179 1.0 11,964 1.5


44 0.0 34 0.0 61 0.0 43 0.0 56 0.0 39 0.0


4 0.0 3 0.0 4 0.0 3 0.0 4 0.0 3 0.0

Due after 25 years

2 0.0 0 0.0 4 0.0 1 0.0 2 0.0 0 0.0

Subtotal 1,511,475 99.9 808,083 99.3 1,572,277 99.9 832,190 99.4 1,538,025 99.9 816,742 99.4

Sec

ured

loan

s

Revolving 1,578 0.1 4,060 0.5 1,329 0.1 3,416 0.4 1,472 0.1 3,767 0.5

Due within 1 year

8 0.0 26 0.0 3 0.0 2 0.0 5 0.0 13 0.0


105 0.0 177 0.0 91 0.0 136 0.0 96 0.0 147 0.0


219 0.0 442 0.1 178 0.0 374 0.1 201 0.0 413 0.0


67 0.0 245 0.0 64 0.0 217 0.0 67 0.0 242 0.0


19 0.0 82 0.0 14 0.0 78 0.0 17 0.0 81 0.0


78 0.0 574 0.1 70 0.0 487 0.1 74 0.0 536 0.1

Due after 25 years

─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─

Subtotal 2,074 0.1 5,610 0.7 1,749 0.1 4,713 0.6 1,932 0.1 5,201 0.6

Revolving 1,413,978 93.4 765,488 94.1 1,470,392 93.4 790,337 94.4 1,437,221 93.3 773,927 94.2

Due within 1 year 872 0.1 143 0.0 1,008 0.1 127 0.0 983 0.1 156 0.0


36,986 2.4 12,440 1.5 39,614 2.5 13,451 1.6 37,889 2.5 12,591 1.5


43,151 2.9 20,931 2.6 48,357 3.1 21,620 2.6 47,465 3.1 22,400 2.7


18,415 1.2 13,992 1.7 14,502 0.9 10,752 1.3 16,246 1.0 12,206 1.5


63 0.0 117 0.0 75 0.0 122 0.0 73 0.0 120 0.0


82 0.0 578 0.1 74 0.0 491 0.1 78 0.0 540 0.1

Due after 25 years 2 0.0 0 0.0 4 0.0 1 0.0 2 0.0 0 0.0

Total 1,513,549 100.0 813,693 100.0 1,574,026 100.0 836,904 100.0 1,539,957 100.0 821,943 100.0

Average term per contract

─ ─ ─

(Note) “Average term per contract” is not calculated since revolving loan contracts are included in the table above.

21

(vii) By interest rate

Interest rate




Number of loan

contracts

Proportion

(%)

Outstanding

balance

(Millions of

yen)

Proportion

(%)

Number of loan


(%)

Outstanding

balance

(Millions of

yen)

Proportion

(%) Number of loan


(%)

Outstanding

balance

(Millions of

yen)

Proportion

(%)

Uns

ecur

ed lo

ans

10% p.a. or less 89,015 5.9 43,028 5.3 94,717 6.0 44,526 5.3 93,038 6.0 44,490 5.4

Above 10.0% to 15.0% p.a.

349,210 23.1 372,967 45.8 358,173 22.8 387,009 46.2 348,729 22.7 374,258 45.6

Above 15.0% to 18.0% p.a.

1,057,599 69.9 383,786 47.2 1,119,300 71.1 400,605 47.9 1,082,229 70.3 390,438 47.5

Above 18.0% to 20.0% p.a.

1,170 0.1 1,785 0.2 8 0.0 13 0.0 1,081 0.1 1,643 0.2

Above 20.0% p.a.

14,481 0.9 6,515 0.8 79 0.0 35 0.0 12,948 0.8 5,910 0.7

Subtotal 1,511,475 99.9 808,083 99.3 1,572,277 99.9 832,190 99.4 1,538,025 99.9 816,742 99.4

Sec

ured

loan

s

10% p.a. or less 480 0.0 1,705 0.2 424 0.0 1,478 0.2 451 0.0 1,592 0.2

Above 10.0% to 15.0% p.a.

1,593 0.1 3,903 0.5 1,325 0.1 3,234 0.4 1,480 0.1 3,607 0.4

Above 15.0% to 18.0% p.a.

1 0.0 1 0.0 ─ ─ ─ ─ 1 0.0 1 0.0

Subtotal 2,074 0.1 5,610 0.7 1,749 0.1 4,713 0.6 1,932 0.1 5,201 0.6

Total 1,513,549 100.0 813,693 100.0 1,574,026 100.0 836,904 100.0 1,539,957 100.0 821,943 100.0

22

(f) Breakdown of funds (i) Breakdown by funding sources

Funding sources, etc.




Outstanding balance

(Millions of yen)


(%)

Outstanding balance

(Millions of yen)


(%)

Outstanding balance

(Millions of yen)


(%)

Borrowings from financial institutions, etc.

409,282 0.90 395,541 0.61 393,594 0.74

Others 230,997 0.55 220,998 0.57 230,998 0.55

[Corporate bonds, CPs] [230,997] [0.55] [220,998] [0.57] [230,998] [0.55]

Total 640,280 0.77 616,539 0.60 624,592 0.67

Owners’ equity 469,458 ─ 505,992 ─ 479,775 ─

[Capital stock] [63,832] [─] [63,832] [─] [63,832] [─]

(Note) “Owners’ equity” was calculated by deducting total liabilities and the planned amount of dividend from total assets, and then adding the total amount of reserves (including reserves under special laws).

(ii) Breakdown by financial institution

(Millions of yen)

Financial institution




Beginning balance

Amount procured

Amount repaid

Final balance

Beginning balance

Amount procured

Amount repaid

Final balance

Beginning balance

Amount procured

Amount repaid

Final balance

Borrowings

City banks, etc. 143,023 217,506 48,328 312,201 303,401 61,500 57,871 307,030 143,023 277,270 116,892 303,401

Regional banks 40,484 8,635 6,434 42,685 41,527 7,300 7,994 40,833 40,484 18,035 16,992 41,527

Trust banks 159,208 ─ 158,658 550 500 ─ ─ 500 159,208 ─ 158,708 500

Foreign banks 2,700 ─ 200 2,500 2,500 ─ 50 2,450 2,700 500 700 2,500

Life insurance companies

18,402 3,500 5,174 16,728 14,930 2,500 4,922 12,508 18,402 6,000 9,472 14,930

Non-life insurance companies

4,295 500 832 3,963 3,631 ─ 332 3,299 4,295 500 1,164 3,631

Business corporations (leasing and financing companies, etc.)

2,500 ─ 470 2,030 2,060 ─ 604 1,456 2,500 500 940 2,060

Other financial institutions

26,110 6,700 4,185 28,625 25,045 6,000 3,580 27,465 26,110 6,700 7,765 25,045

Subtotal 396,722 236,841 224,281 409,282 393,594 77,300 75,353 395,541 396,722 309,505 312,633 393,594

Commercial papers 29,998 79,999 70,000 39,997 39,998 80,000 90,000 29,998 29,998 159,999 150,000 39,998

Corporate bonds (including current portion of bonds payable)

201,000 25,000 35,000 191,000 191,000 10,000 10,000 191,000 201,000 25,000 35,000 191,000

Subtotal 230,998 104,999 105,000 230,997 230,998 90,000 100,000 220,998 230,998 184,999 185,000 230,998

Total 627,720 341,840 329,281 640,280 624,592 167,300 175,353 616,539 627,720 494,505 497,633 624,592

(Note) “City banks, etc.” includes Shinsei Bank, Limited and Aozora Bank, Ltd. 3. Material Business Agreements, etc.

During the current second quarter, no material business agreement, etc. was finalized or concluded.

23

III. Information on the Filing Company

1. Information on the Company’s Shares

(1) Total number of shares, etc. 1) Total number of shares

Class Total number of shares authorized to be issued

Common stock 5,321,974,000

Total 5,321,974,000

2) Total number of shares issued

Class

As of the end of the current second

quarter (September 30,

2019)

As of the submission date (November 14,

2019)

Stock exchange on which the

Company is listed Description

Common stock 1,596,282,800 1,596,282,800 First Section of the Tokyo Stock

Exchange

These are the Company’s standard shares with no restricted rights. One unit of stock constitutes 100 common shares.

Total 1,596,282,800 1,596,282,800 ― ―

(2) Status of the stock acquisition rights

1) Details of stock option plans Not applicable

2) Other stock acquisition rights Not applicable

(3) Status in the exercise of bonds with stock acquisition rights with exercise price amendment Not applicable

(4) Changes in the total number of shares issued and the amount of capital stock and other

(Millions of yen, unless otherwise stated)

Period

Changes in the total

number of shares issued (Thousands of shares)

Balance of the total

number of shares issued (Thousands of shares)

Changes in capital stock

Balance of capital stock

Changes in legal capital

surplus

Balance of legal capital

surplus

From July 1, 2019, to September 30, 2019

― 1,596,282 ― 63,832 ― 72,322

24

(5) Major shareholders As of September 30, 2019

Name Address Number of shares held (Thousands

of shares)

Percentage of shares held to the total number of issued shares

(excluding shares of treasury stock)

(%) Mitsubishi UFJ Financial Group, Inc.

7-1, Marunouchi 2-chome, Chiyoda-ku, Tokyo 588,723 37.57

Maruito Shokusan Co., Ltd. 2-3, Minatomachi 1-chome, Naniwa-ku, Osaka-shi 273,467 17.45

Maruito Co., Ltd. 2-3, Minatomachi 1-chome, Naniwa-ku, Osaka-shi

125,533 8.01

Foundation of Kinoshita Memorial Enterprise

2-14, Motomachi-dori 6-chome, Chuo-ku, Kobe-shi 92,192 5.88

Maruito Shoten Co., Ltd. 2-3, Minatomachi 1-chome, Naniwa-ku, Osaka-shi

38,733 2.47

General Incorporated Association Kyoeikai Trust Account 16-7, Ginza 1-chome, Chuo-ku, Tokyo 32,598 2.08

Mitsubishi UFJ Trust and Banking Corporation (Standing proxy: The Master Trust Bank of Japan, Ltd.)

4-5, Marunouchi 1-chome, Chiyoda-ku, Tokyo (11-3, Hamamatsu-cho 2-chome, Minato-ku, Tokyo)

31,572 2.01

NOBUKA CO., LTD. 2-3, Minatomachi 1-chome, Naniwa-ku, Osaka-shi 30,000 1.91

Shigeyoshi Kinoshita Minato-ku, Tokyo 28,007 1.78

Japan Trustee Services Bank, Ltd. (Trust account 4) 8-11, Harumi 1-chome, Chuo-ku, Tokyo 27,212 1.73

Total ― 1,268,041 80.9

(Notes) 1. In addition to the shares above, the Company owns 29,668 thousand shares of treasury stock. 2. In “Number of shares held,” figures less than one thousand are truncated.

25

(6) Status of voting rights

1) Issued shares As of September 30, 2019

Classification Number of shares

(Shares) Number of voting

rights (Units) Details

Shares without voting rights ― ― ―

Shares with limited voting rights (treasury stock, etc.)

― ― ―

Shares with limited voting rights (others)

― ― ―

Shares with full voting rights (treasury stock, etc.)

(Treasury stock) Common stock

29,668,500 ― ―

Shares with full voting rights (others)

Common stock 1,566,598,300

15,665,983 ―

Shares less than one unit Common stock

16,000 ― ―

Total number of shares issued 1,596,282,800 ― ―

Total voting rights held by all shareholders

― 15,665,983 ―

(Notes) 1. The number of shares of common stock in the “Shares with full voting rights (others)” box includes 3,000 shares (30 units of voting rights) held by Japan Securities Depository Center, Inc.

2. The number of shares of common stock in the “Shares less than one unit” box includes 92 shares of treasury stock held by the Company.

2) Treasury stock, etc.

As of September 30, 2019

Shareholder Address of shareholder

Number of shares held

under own name (Shares)

Number of shares held

under the names of others (Shares)

Total (Shares)

Percentage of shares held to

the total number of

issued shares (%)

(Treasury stock) ACOM CO., LTD.

1-1, Marunouchi 2-chome, Chiyoda-

ku, Tokyo 29,668,500 ― 29,668,500 1.85

Total ― 29,668,500 ― 29,668,500 1.85

2. Directors

There was no change in directors for the six months ended September 30, 2019, after the filing date of the securities report for the prior fiscal year.

26

IV. Financial Information 1. Basis of preparation of the quarterly consolidated financial statements

The quarterly consolidated financial statements of the Company are prepared in accordance with the “Regulations Concerning the Terminology, Forms and Preparation of Quarterly Consolidated Financial Statements” (Cabinet Office Ordinance No. 64, 2007) and the “Ordinance on Reorganization of Accounting Methods for Special Finance Corporations, etc.” (Ordinance of General Administrative Agency of the Cabinet/the Finance Ministry No. 32 of 1999).

2. Audit and review reports

Pursuant to the first paragraph of Article 193-2 of the Financial Instruments and Exchange Act, the Company’s quarterly consolidated financial statements for the current second quarter (from July 1, 2019, to September 30, 2019) and for the six months ended September 30, 2019 (from April 1, 2019, to September 30, 2019) were reviewed by Deloitte Touche Tohmatsu LLC.

27

1. Quarterly Consolidated Financial Statements (1) Quarterly Consolidated Balance Sheet

(Millions of yen)

Prior fiscal year



Assets Current assets

Cash and deposits 85,546 82,220 Accounts receivable - operating loans *2 1,000,428 *2 1,024,041 Loans receivable of banking business 48,331 ― Accounts receivable - installment 63,740 70,269 Purchased receivables 9,435 9,432 Securities 479 ― Raw materials and supplies 64 39 Other 91,327 86,801 Allowance for doubtful accounts (76,532) (78,819) Total current assets 1,222,821 1,193,984

Noncurrent assets Property, plant and equipment

Buildings and structures, net 3,791 3,576 Equipment, net 9,606 7,372 Land 3,196 3,123 Other, net 1,269 1,005 Total property, plant and equipment 17,864 15,077

Intangible assets Goodwill 3,250 2,843 Software 5,387 4,755 Other 50 50 Total intangible assets 8,687 7,648

Investments and other assets Investment securities 4,247 1,165 Net defined benefit asset 3,898 3,496 Deferred tax assets 36,117 34,377 Guarantee deposits 5,035 5,075 Other *2 4,266 *2 5,253 Allowance for doubtful accounts (1,032) (981) Total investments and other assets 52,534 48,385

Total noncurrent assets 79,086 71,112 Total assets 1,301,908 1,265,097

28

(Millions of yen)

Prior fiscal year



Liabilities Current liabilities

Notes and accounts payable-trade 509 771 Short-term loans payable 11,547 13,404 Commercial papers 39,998 29,998 Current portion of long-term loans payable 146,714 112,365 Current portion of bonds 41,519 47,365 Deposits of banking business 52,319 ― Income taxes payable 7,772 7,081 Provision for loss on guarantees *1 9,661 *1 9,002 Asset retirement obligations 10 238 Deferred installment income 42 40 Other 16,728 11,586 Total current liabilities 326,824 231,855

Noncurrent liabilities Bonds payable 202,691 196,500 Long-term loans payable 282,671 319,685 Deferred tax liabilities 28 ― Provision for directors’ retirement benefits 25 27 Provision for loss on interest repayment 102,300 85,307 Net defined benefit liability 338 485 Asset retirement obligations 4,159 3,893 Other 1,366 887 Total noncurrent liabilities 593,581 606,787

Total liabilities 920,406 838,642 Net assets

Shareholders’ equity Capital stock 63,832 63,832 Capital surplus 73,549 73,549 Retained earnings 237,058 280,590 Treasury stock (19,794) (19,794) Total shareholders’ equity 354,646 398,178

Accumulated other comprehensive income Valuation difference on available-for-sale

securities (0) (0)

Foreign currency translation adjustment 2,832 5,664 Remeasurements of defined benefit plans (1,304) (1,098) Total accumulated other comprehensive

income 1,528 4,565

Non-controlling interests 25,327 23,710 Total net assets 381,501 426,454

Total liabilities and net assets 1,301,908 1,265,097

29

(2) Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement of Comprehensive Income (Quarterly Consolidated Statement of Income) Six months ended September 30

(Millions of yen)




to September 30, 2019) Operating revenue

Interest on operating loans 83,942 87,247 Interest on loans of banking business 2,979 1,567 Revenue from credit card business 3,741 4,412 Revenue from installment sales finance

business 34 32

Revenue from credit guarantee 30,369 29,846 Collection from purchased receivable 2,276 1,996 Other financial revenue *1 457 *1 197 Other operating revenue 13,523 13,989 Total operating revenue 137,323 139,290

Operating expenses Financial expenses *2 5,926 *2 4,538 Cost of purchased receivable 914 813 Other operating expenses *3 82,527 *3 83,126 Total operating expenses 89,367 88,478

Operating profit 47,956 50,812 Non-operating income

Interest income 106 52 Dividend income 15 25 Equity in earnings of affiliates 6 2 House rent income 142 132 Other 91 65 Total non-operating income 363 277

Non-operating expenses Interest expenses 16 12 Foreign exchange losses 41 923 Loss on insurance cancellation 48 ― Other 5 9 Total non-operating expenses 113 945

Ordinary profit 48,207 50,144

30

(Millions of yen)




to September 30, 2019) Extraordinary income

Gain on sales of noncurrent assets 36 0 Gain on sales of shares of subsidiaries and

associates ― 9,875

Total extraordinary income 36 9,875 Extraordinary loss

Loss on sales of noncurrent assets 4 0 Loss on retirement of noncurrent assets 39 47 Impairment loss ― *4 2,370 Loss on sales of investment securities ― 1 Loss on valuation of investment securities 6 ― Merger expenses ― *5 2,363 Other 1 0 Total extraordinary losses 50 4,784

Profit before income taxes 48,192 55,235 Income taxes-current 5,780 7,140 Income taxes-deferred 246 1,137 Total income taxes 6,027 8,277 Profit 42,165 46,957 Profit attributable to non-controlling interests 2,325 1,859 Profit attributable to owners of parent 39,839 45,098

31

(Quarterly Consolidated Statement of Comprehensive Income) Six months ended September 30

(Millions of yen) For the six months ended

September 30, 2018 (From April 1, 2018



to September 30, 2019) Profit 42,165 46,957 Other comprehensive income

Valuation difference on available-for-sale securities

(0) (0)

Foreign currency translation adjustment (3,307) 4,551 Remeasurements of defined benefit plans,

net of tax (24) 234

Total other comprehensive income (3,331) 4,785 Comprehensive income 38,833 51,743

Comprehensive income attributable to: Owners of parent 37,486 48,136 Non-controlling interests 1,347 3,607

32

(3) Quarterly Consolidated Statement of Cash Flows (Millions of yen)




to September 30, 2019) Net cash provided by (used in) operating

activities

Profit before income taxes 48,192 55,235 Depreciation and amortization 2,387 1,807 Impairment loss ― 2,370 Amortization of goodwill 406 406 Increase (decrease) in allowance for doubtful

accounts 1,938 2,707

Increase (decrease) in provision for loss on guarantees

(731) (659)

Increase (decrease) in net defined benefit liability

31 148

Increase (decrease) in provision for directors’ retirement benefits

1 1

Increase (decrease) in provision for loss on interest repayment

(20,875) (16,992)

Interest and dividends income (122) (77) Interest expenses 16 12 Amortization of bond issuance cost 136 66 Foreign exchange losses (gains) (30) 876 Equity in (earnings) losses of affiliates (6) (2) Loss (gain) on sales of property, plant and

equipment (32) 0

Loss on retirement of property, plant and equipment

39 47

Loss (gain) on sales of investment securities ― 1 Loss (gain) on valuation of investment

securities 6 ―

Loss (gain) on sales of shares of subsidiaries and associates

― (9,875)

Merger expenses ― 2,363 Decrease (increase) in accounts receivable -

operating loans (11,059) (18,894)

Decrease (increase) in loans receivable of banking business

(1,885) 1,092

Decrease (increase) in accounts receivable -installment

(5,311) (6,512)

Decrease (increase) in purchased receivables 245 3 Decrease (increase) in net defined benefit asset 180 496 Decrease (increase) in trading account

securities 1,159 ―

Decrease (increase) in inventories (20) 13 Decrease (increase) in other current assets (5,542) 1,520 Increase (decrease) in notes and accounts

payable-trade 199 262

Increase (decrease) in deposits of banking business

3,049 385

Increase (decrease) in deferred installment income

(11) (2)

Increase (decrease) in other current liabilities (2,570) (4,093) Increase (decrease) by other operating

activities (57) (230)

Subtotal 9,734 12,480 Interest and dividends income received 121 77 Interest expenses paid (16) (12) Income taxes paid (4,824) (7,832) Net cash provided by (used in) operating

activities 5,014 4,712

33

(Millions of yen)




to September 30, 2019) Net cash provided by (used in) investing

activities

Purchase of securities (1,193) ― Proceeds from redemption of securities ― 21 Purchase of property, plant and equipment (482) (707) Proceeds from sales of property, plant and

equipment 45 0

Purchase of intangible assets (1,110) (1,038) Purchase of investment securities (483) ― Proceeds from sales and redemption of

investment securities 790 ―

Proceeds from sales of shares of subsidiaries resulting in change in scope of consolidation

― *2 10,411

Increase (decrease) by other investing activities

359 (253)

Net cash provided by (used in) investing activities

(2,075) 8,434

Net cash provided by (used in) financing activities

Proceeds from short-term loans payable 56,329 102,037 Repayments of short-term loans payable (57,582) (100,536) Proceeds from issuance of commercial papers 79,987 79,986 Redemption of commercial papers (70,000) (90,000) Proceeds from issuance of bonds 28,292 15,168 Redemption of bonds (40,145) (16,980) Proceeds from long-term loans payable 80,066 84,940 Repayments of long-term loans payable (68,942) (83,218) Repayments of finance lease obligations (295) (277) Proceeds from share issuance to non-

controlling shareholders 357 ―

Cash dividends paid (1,565) (1,565) Dividends paid to non-controlling interests (790) (1,447) Payments from changes in ownership interests

in subsidiaries that do not result in change in scope of consolidation

(13) ―

Net cash provided by (used in) financing activities

5,699 (11,894)

Effect of exchange rate change on cash and cash equivalents

(435) (1,378)

Net increase (decrease) in cash and cash equivalents

8,202 (126)

Cash and cash equivalents at beginning of period 88,551 82,346 Cash and cash equivalents at end of period *1 96,754 *1 82,220

34

[Notes] (Changes in the Scope of Consolidation or the Scope of Application of the Equity-Method)

During the three months ended June 30, 2019, the Company sold all holding shares of PT. Bank Nusantara Parahyangan, Tbk., which had been a consolidated subsidiary until the prior fiscal year, and thereby excluded that company from the scope of consolidation.

(Notes to Quarterly Consolidated Balance Sheet) *1. Contingent liabilities

(Millions of yen)



Outstanding guarantee obligation in the guarantee business 1,212,255 1,223,964

Outstanding guarantee obligation in the banking business 510 ―

Provision for loss on guarantees 9,661 9,002

Net 1,203,103 1,214,962

*2. Status of non-performing loans in accounts receivable - operating loans

(Millions of yen)



Loans to bankrupt parties 769 780 Loans in arrears 24,179 25,702 Loans overdue by three months or more 4,753 5,107

Restructured loans 31,990 31,047

Total 61,692 62,638 (Notes) 1. Loans to bankrupt parties refer to loans to bankrupt parties, parties in rehabilitation and

reorganization, and others which are loans where interest is not accrued. 2. Loans in arrears refer to other loans where interest is not accrued, excluding loans on which

interest payment is deferred for the purpose of reconstructing or assisting debtors. 3. Loans overdue by three months or more refer to loans other than the above that are overdue by

three months or more. 4. Restructured loans refer to loans other than the above that are restructured by favorable terms for

debtors, such as reduction or waiving of interest, in order to facilitate collection of an outstanding balance.

35

(Notes to Quarterly Consolidated Statement of Income) *1. Major items of other financial revenue

(Millions of yen)

For the six months ended September 30, 2018

(From April 1, 2018 to September 30, 2018)



Interest on deposits 36 9 Interest on securities 62 11 Interest on loans 33 59 Interest on deposits with banks 64 43 Foreign exchange gains 41 ― *2. Major items of financial expenses

(Millions of yen)





Interest expenses 2,605 2,056 Interest on bonds 1,469 1,352 Amortization of bond issuance cost 136 66 Interest expenses of banking business 1,308 745 *3. Major expense items of other operating expenses

(Millions of yen)





Advertising expenses 5,848 6,197 Provision of allowance for doubtful accounts

32,492 33,594

Provision for loss on guarantees 5,892 5,370 Employees’ salaries and bonuses 9,927 10,116 Retirement benefit expenses 445 857 Provision for directors’ retirement benefits

1 1

Rent expenses 3,228 3,092 Depreciation 2,387 1,807 Commission fee 11,261 10,702 Amortization of goodwill 406 406

36

*4. The following losses on impairment of noncurrent assets are recorded.

(1) Assets recognized as having suffered impairment Location Usage Type

Chiyoda-ku, Tokyo Idle assets (paintings) Equipment

(2) Method of grouping assets The smallest units the Group has adopted for the grouping of assets are as below: (a) For the domestic loan and credit card business and guarantee business: each business (b) For other financial businesses: each company (c) For the overseas financial business: each company For leasehold estate, property to be sold and idle assets, the smallest units are the individual assets themselves. Our headquarters and welfare/leisure facilities for our employees are treated as common assets because they do not generate their own cash flows.

(3) Process through which impairment loss was recognized

Some paintings (artworks) were designated as idle assets, as they were expected to have no future use due to layout changes in the Head Office building. The carrying amount of these paintings were reduced to the recoverable amount and the amount of reduction was recognized as an impairment loss.

(4) Amount of impairment loss

Equipment 2,370 million yen

(5) Calculation method of recoverable amount The recoverable amount of the ide assets is measured by net selling price and evaluated based on appraisal value.

*5. Merger expenses under extraordinary loss includes retirement payments (2,158 million yen), office closing

expenses (68 million yen) and inventory disposal expenses (136 million yen), resulting from merger between PT Bank Danamon Indonesia, Tbk. and PT. Bank Nusantara Parahyangan, Tbk., a former consolidated subsidiary of the Company.

6. Basis for classification of financial revenue and financial expenses on quarterly consolidated statement of

income is as follows. (1) Financial revenue stated as operating revenue

Includes all financial revenue earned by the Company and its consolidated subsidiaries which engage in the financial service business, excluding dividends and interest on investment securities, etc.

(2) Financial expenses stated as operating expenses Include all financial expenses spent by the Company and its consolidated subsidiaries which engage in the financial service business, excluding interest expenses, etc. which have no relationship to operating revenue.

37

(Notes to Quarterly Consolidated Statement of Cash Flows) *1 Relationship between the quarter-end balance of cash and cash equivalents and the amount of quarterly

consolidated balance sheet items (Millions of yen)





Cash and deposits 99,087 82,220 Short-term investment securities 1,507 ― Time deposits with original maturities of

more than three months (214) ―

Cash reserved for banking business (3,194) ― Bonds with maturities of more than three

months (1,507) ―

Short-term loans receivable included in other current assets

1,076 ―

Cash and cash equivalents 96,754 82,220 *2. Breakdown of assets and liabilities of the company excluded from the scope of consolidation due to sales

of shares The breakdown of the assets and liabilities of PT. Bank Nusantara Parahyangan, Tbk. at the time of sales

of shares, the sales value of shares, and proceeds from the sales of shares upon its exclusion of the scope of consolidation due to the sales of shares, are as follows:

(Millions of yen) Current assets 61,673 Noncurrent assets 2,899 Current liabilities (56,324) Noncurrent liabilities (58) Foreign currency translation adjustment 1,923 Remeasurements of defined benefit plans 62 Non-controlling interests (2,654) Gain on sales of shares 9,875

Sales value of shares 17,396 Cash and cash equivalents (6,984)

Net proceeds from the sales of shares 10,411

38

(Notes to Shareholders’ Equity) For the six months ended September 30, 2018 (from April 1, 2018, to September 30, 2018)

1. Dividends paid

Resolution Class of shares

Total amount (Millions of

yen)

Dividend per share (yen)

Record date Effective date Sources of dividend

Ordinary General Meeting of

Shareholders held on June 22, 2018

Common stock

1,566 1.00 March 31,

2018 June 25, 2018

Retained earnings

2. Dividends whose record date falls in the six months ended September 30, 2018, but whose effective date

was after September 30, 2018



yen)



Board of Directors Meeting held on

November 1, 2018

Common stock

1,566 1.00 September 30,

2018 December 6,

2018 Retained earnings

For the six months ended September 30, 2019 (from April 1, 2019, to September 30, 2019)

1. Dividends paid



yen)



Ordinary General Meeting of

Shareholders held on June 21, 2019

Common stock

1,566 1.00 March 31,

2019 June 24, 2019

Retained earnings

2. Dividends whose record date falls in the six months ended September 30, 2019, but whose effective date is

after September 30, 2019



yen)



Board of Directors Meeting held on

November 5, 2019

Common stock

3,133 2.00 September 30,

2019 December 6,

2019 Retained earnings

39

(Segments and related information) [Segment information]

I. For the six months ended September 30, 2018 (from April 1, 2018, to September 30, 2018) 1. Operating revenue and profit or loss by reported segments

(Millions of yen)

Reported segments Others (Note) Total

Loan and credit card business

Guarantee business

Overseas financial business


Subtotal

Operating revenue

Operating revenue from external customers

72,209 34,374 27,833 2,864 137,282 41 137,323

Revenues from transactions with other operating segments

─ ─ 1 ─ 1 32 34

Total 72,209 34,374 27,834 2,864 137,284 74 137,358

Segment profit 25,658 12,241 9,683 120 47,704 74 47,778

(Note) The “Others” category refers to operating revenue and profit which are not included in the reported segments.

2. Information about assets by reported segments (Significant decreases in assets due to a decrease in the number of subsidiaries)

Not applicable

3. Reconciliation between the total segment profit or loss and operating profit in quarterly consolidated statement of income

Profit Amount (Millions of yen)

Total reported segments 47,704

Profit of “Others” category 74

Elimination of intersegment transactions 29

Adjustment due to unification of accounting treatment between parent company and subsidiaries, etc.

148

Operating profit in quarterly consolidated statement of income 47,956

4. Information about impairment loss on noncurrent assets or goodwill, etc. of each reported segment (Significant impairment loss on noncurrent assets)

Not applicable

40

II. For the six months ended September 30, 2019 (from April 1, 2019, to September 30, 2019) 1. Operating revenue and profit or loss by reported segments

(Millions of yen)

Reported segments Others (Note)

Total

Loan and credit card business

Guarantee business

Overseas financial business


Subtotal

Operating revenue

Operating revenue from external customers 74,452 34,146 28,118 2,573 139,290 0 139,290

Revenues from transactions with other operating segments

─ ─ ─ ─ ─ 34 34

Total 74,452 34,146 28,118 2,573 139,290 34 139,324

Segment profit 26,152 13,188 11,080 308 50,729 34 50,764

(Note) The “Others” category refers to operating revenue and profit which are not included in the reported segments.

2. Information about assets by reported segments

(Significant decreases in assets due to a decrease in the number of subsidiaries) Segment assets in the “Overseas financial business” decreased by 55,679 million yen from the end of the

prior fiscal year. This was mainly because the Company sold all holding shares of PT. Bank Nusantara Parahyangan, Tbk., which had been a consolidated subsidiary until the prior fiscal year, and thereby excluded that company from the scope of consolidation.

3. Reconciliation between the total segment profit or loss and operating profit in quarterly consolidated

statement of income

Profit Amount (Millions of yen)

Total reported segments 50,729

Profit of “Others” category 34

Elimination of intersegment transactions 7

Adjustment due to unification of accounting treatment between parent company and subsidiaries, etc.

40

Operating profit in quarterly consolidated statement of income 50,812

4. Information about impairment loss on noncurrent assets or goodwill, etc. of each reported segment

(Significant impairment loss on noncurrent asset) The Company Group recognized Impairment loss on idle assets which are not allocated to the reported

segments. The amount of such impairment loss was 2,370 million yen for the six months ended September 30, 2019.

41

(Per share information) The amount and basis for calculation of basic earnings per share are as follows:

(Millions of yen, unless otherwise stated)

Item





Basic earnings per share 25.43 yen 28.79 yen

(Basis for calculation)

Profit attributable to owners of parent

39,839 45,098

Profit not attributable to common shareholders

― ―

Profit attributable to owners of parent in relation to common stock

39,839 45,098

Weighted average number of common stock during the quarter

1,566,614,208 shares 1,566,614,208 shares

(Note) “Diluted earnings per share” is not stated because there is no dilutive security.

42

2. Others The Board of Directors Meeting, held on November 5, 2019, made resolutions on interim dividend as follows: 1) Total amount of interim dividend: 3,133 million yen 2) Interim dividend per share: 2.00 yen 3) Effective date for demanding payment and

commencement date of payment: December 6, 2019 (Note) Dividend will be paid to the final registered shareholders as of September 30, 2019.

43

Part II Information on Guarantors for the Filing Company

Not applicable

Quarterly Securities Report · gather and acquire new customers by airing commercials featuring new...

Documents

Transcript of Quarterly Securities Report · gather and acquire new customers by airing commercials featuring new...