Earnings Release Presentation - IR Pocket

Earnings Release PresentationFiscal Year Ended March 2017

ACOM CO., LTD.

https://www.acom.co.jp/corp/english/ir/May 10, 2017

Financial Results Highlight for the Fiscal Year Ended March 2017

1．Business Environment 3

2．Trend of Market Volume of Domestic PersonalCard Loans

4

3．Financial Results Summary 5

4．Composition Ratios by Reported Segment 6

5．Loan and Credit Card Business (ACOM) 7

6．Loan Business (ACOM) 8

7．Guarantee Business (ACOM and MU Credit Guarantee) 9

8．Guarantee Business (ACOM) 10

Reference Information

13．Provision for Bad Debts 15

14．Financial Expenses 16

15．Annual Forecast for the FY March 2018 17

19．[Reference] Medium-term Management Plan(2017/3 – 2019/3)

21

2220．[Reference] Quantitative Targets for theMedium-term Management Plan (2017/3 – 2019/3)

1311．Trend of No. of Requests for Interest Repayment(ACOM)

1210．Overseas Financial Business (EASY BUY (EB) and Bank BNP (BNP))

1412．Trend of Loss on Interest Repayment (ACOM)

119．Target Market in Overseas Financial Business

16．Basic Policy and Forecasts on Dividends 18

17．[Reference] Summary of Segment Income 19

Table of Contents

18．[Reference] Summary of Segment Income(Excluding Impact of Addition of Provision and Change in Estimate of Allowance for Doubtful Accounts)

20

3

Business Environment

Macro Environment

Competitive and Market Environment

<Kingdom of Thailand> GDP made a moderate growth although Thai

economy was hit by slowing Chinese economy and delay in economic recovery in advanced nations.

There are auspicious signs of economic recovery owing to public investments made by the government and recovery in tourism sector.

<Republic of Indonesia> Its economy is in recovery trend despite global

economic slowdown, including China. The central bank reduced the policy interest rate.

<Japan> Japanese economy on the whole saw signs of

gradual recovery such as improving corporate earnings and employment environment owing to implementation of economic policies and growth strategies by the government.

Concern on economic downturn in Japan due to uncertainty in overseas economies and the impact of fluctuations in the financial and capital markets.

<Kingdom of Thailand> Some financial institutions are taking discrete

stances toward financing due to household debts issue.

Personal loan market is in a growth trend though the rate of growth has dropped.

<Republic of Indonesia> Bank loan market expanded smoothly. Banks’ non-performing loans are in increasing

trend. There is apprehension for deterioration in banks’ loan portfolios.

<Japan> Loan business saw changes in the nature of

competitive structure of market. The market now involves diverse players from both bank and nonbank categories.

Domestic personal card loan market expanded smoothly.

Expansion and oligopoly of market progressed in guarantee business category.

Business environment remains to be severe as shown by requests for interest repayment.

3.85 4.103.28 3.29 3.25 3.31 3.54 4.61 5.12 5.43

-0.6% -1.6% 0.8% 5.8% 14.2% 11.3% 10.2% 9.3%

09/3 10/3 11/3 12/3 13/3 14/3 15/3 16/3 (16/12)

Domestic Banks Credit Unions yoy

6.52 5.003.26 2.72 2.37 2.30 2.30 2.35 2.36

5.504.93

3.732.91 2.57 2.06 1.90 1.82 1.78

-17.3%-29.7% -19.3% -12.2% -11.9% -3.6% -0.7% -0.0%

09/3 10/3 11/3 12/3 13/3 14/3 15/3 16/3 (16/12)

Consumer FinanceCompanies

Credit CardCompanies, etc.

yoy

12.029.94

6.995.64 4.95 4.36 4.20 4.17 4.14

3.90

3.88

3.82

3.854.07 4.65 5.17 5.70 6.02

-13.2% -21.8%-12.2% -4.9% -0.2% 4.1% 5.3% 5.3%

09/3 10/3 11/3 12/3 13/3 14/3 15/3 16/3 (16/12)

Nonbank Category Bank Category yoy

Nonbank Category

Trend of Market Volume of Domestic Personal Card LoansDomestic Personal Card Loan Market

(Trillions of yen)

Bank Category

ACOM’sShare 10.3％ 12.4％ 13.5％ 14.4％ 15.6％ 16.2％ 16.7％ 17.2％

Consolidated 16.4％ 17.1％ 17.8％ 18.4％ACOM’sShare 11.1％ 12.9％ 14.2％ 14.5％ 16.6％ 17.8％ 18.4％ 18.8％

13.83

15.93

10.81

9.49 9.03 9.019.889.38

3.90 3.88 3.82 3.85 4.075.174.654.39

12.02

9.94

6.995.64 4.95 4.36 4.144.20

ACOM’sShare 8.2％ 11.6％ 12.5％ 14.4％ 14.6％ 15.0％ 15.5％ 16.1％

Consolidated 16.2％ 16.6％ 17.3％ 18.1％

4

5.70

10.17

6.02

4.17

* Nonbank category is receivables outstanding (include loan on deeds) in statistics by Japan Financial Services Association (JFSA). JFSA’s figure for 2016/12 is preliminary. * Bank category refers to the volume of personal card loans provided by domestic banks and credit unions in statistics by The Bank of Japan.(Correction on statistics by The Bank of Japan, announced on August 10, 2015, led to increase of 260 billion yen).

(Trillions of yen)

(Trillions of yen)

*

Financial Results Summary

Consolidated Non-consolidated2016/3 2017/3 2016/3 2017/3

Results yoy Results yoy Compared to forecast Results yoy Results yoy Compared

to forecast

Receivables Outstanding 1,985,336 8.3 2,155,920 8.6 101.5 1,680,752 8.8 1,827,945 8.8 101.7Loan & Credit Card Business 794,982 3.4 822,916 3.5 100.3 794,982 3.4 822,916 3.5 100.3Guarantee Business 987,508 14.7 1,129,773 14.4 103.3 885,770 14.1 1,005,029 13.5 102.9Overseas Financial Business 192,068 -1.7 191,845 -0.1 96.6 - - - - -

Operating Revenue 237,683 8.4 245,148 3.1 101.2 175,380 7.2 183,997 4.9 101.7Loan & Credit Card Business 133,170 3.5 135,971 2.1 101.0 133,170 3.5 135,971 2.1 101.0Guarantee Business 48,868 19.2 56,411 15.4 103.9 41,500 19.8 47,842 15.3 103.6Overseas Financial Business 48,275 12.4 45,606 -5.5 97.4 - - - - -

Operating Expenses 222,166 8.3 315,315 41.9 177.6 174,352 7.3 269,388 54.5 207.9Financial Expenses 17,313 -11.2 13,524 -21.9 83.5 8,299 -17.7 7,153 -13.8 86.2Provision for Bad Debts 60,040 11.5 68,538 14.2 100.6 43,780 8.3 51,786 18.3 100.2Provision for Loss on Interest Repayment 56,638 13.6 143,728 153.8 - 56,638 13.6 143,728 153.8 -

Other Operating Expenses 88,175 7.5 89,524 1.5 96.1 65,405 5.3 66,720 2.0 95.9Operating Profit 15,516 10.3 -70,166 - - 1,028 -9.1 -85,390 - -Ordinary Profit 16,200 9.9 -69,543 - - 5,171 24.3 -84,054 - -Profit Before Income Taxes 14,985 -2.7 -69,497 - - 3,876 -19.5 -83,986 - -Profit 17,935 13.2 -69,118 - - 9,857 5.8 -79,289 - -Profit Attributable to Owners of Parent 14,598 13.5 -72,187 - - - - - - -

5

(Millions of yen, %)

<P/L>

768.7 794.9

(E)2,123.5

822.9 850.0

861.2 987.5 1,129.7 1,240.5 195.4 192.0 191.8 210.2

9.9% 8.3% 8.6% 7.3%

15/3 16/3 18/3

128.7 133.1

(E)242.3

135.9 137.8

40.9 48.8 56.4 63.1 42.9 48.2 45.6 49.7

8.4% 8.4% 3.1% 4.8%

15/3 16/3 18/3

-1.8% 10.3%

41.4 44.7(E)

64.8 50.3

11.1 14.4 9.610.1 11.1 12.6

6.9% 12.9%2.0% -3.1%

15/3 16/3 18/3

6

2,155.91,985.31,833.9245.1237.6219.2

73.572.163.9 （13.1%）

（68.5%）

2,312.6 257.0

OtherL.C Business (*)

OverseasFinancialBusiness

GuaranteeBusiness

yoy

(Billions of yen)

( ) CompositionRatios bySegment

OtherL.C Business


GuaranteeBusiness

yoy

(Billions of yen)

( ) CompositionRatios bySegment

OtherL.C Business

Overseas FinancialBusiness

GuaranteeBusiness

yoy (Billions of yen)<Reference> Operating Profit Excluding Provision for Loss on Interest Repayment

Operating Revenue

Operating Profit

Receivables Outstanding

Composition Ratios by Reported Segment

( ) Composition Ratios by Segment

* “L. C Business” stands for loan and credit card business.

(Forecast) (Forecast)

(Forecast)

-8.3 11.1 -11.8 14.4

-93.39.6

10.1 11.1

12.6

14.0 15.5

-70.1

15/3 16/3 17/3

（17.2%） 71.3

17/3 17/3

17/3

（19.3%）

（24.6%）

（53.6%）

（23.0%）

（55.5%）

（18.6%）（8.9%）

（52.4%）

（38.2%）

（9.1%）

（53.6%）

（36.8%）

1,397 1,409 1,441 1,470

215 254 314 370

-0.0% 0.9% 2.3% 2.0%

15/3 16/3 18/3

Loan Credit Card yoy

(E)1,425

(E)289

41.4 44.7 50.3

-1.6% 8.0% 12.4%

15/3 16/3 17/3

-8.3 -11.8-93.3

15/3 16/3 17/3

Profit yoy

19.2 20.3 21.8 0.8

1.21.5

2.62% 2.72% 2.84%

15/3 16/3 17/3

Loan Credit Card Ratio of Bad DebtExpenses

747.1 767.1

(E)820.4

784.8 803.221.5

27.838.1

46.8

15/3 16/3 18/3


125.7 129.3

(E)134.6

131.1 131.8

2.9 3.7 4.8 6.0

1.9% 3.5% 2.1% 1.3%

15/3 16/3 18/3


20.121.6

23.4

768.7794.9

822.9850.0

128.7 133.1 135.9 137.8

7

Loan and Credit Card Business (ACOM) Receivables Outstanding Operating Revenue Operating Profit

： Increased by 3.5% yoy to 822.9 billion yen, accomplishing the forecast.： Increased by 2.1% yoy to 135.9 billion yen, accomplishing the forecast.： Recorded loss of 93.3 billion yen. However, it was increase of 12.4% yoy to 50.3 billion yen when

provision for loss on interest repayment is excluded.


No. of Customer Accounts Average Yield (*)

Operating Revenue Operating Profit

Amount and Ratio of Bad Debt Expenses (*)

* Average yield of credit card is calculated by receivables and fees of revolving.* Amount and ratio of bad debt expenses exclude waiver of repayments accompanying interest repayment.

(Forecast)

(Billions of yen)<( ) shows Loans>

3.4%（2.9%）

3.4%（2.7%）

3.5%（2.3%）

(Billions of yen)

(Forecast)

<Operating profit excluding provision for loss

on interest repayment>

(Billions of yen)

15.42% 15.34% 15.16%

13.58% 13.69% 13.68%

15.38% 15.29% 15.11%

15/3 16/3 17/3

Loan Credit Card Loan &Credit Card

(Billions of yen)

3.3%（2.3%）

17/3 17/3

17/3(Forecast)

(Thousands)

15.42% 15.34% 15.02%

15.49% 15.39% 15.21% 15.06%

15/3 16/3 17/3 18/3

All Loans Unsecured Loans

15.16%

736.4 758.2

(E)784.7

777.5 797.610.78.8 7.2 5.6

2.9%(3.3%)

2.7%(3.0%)

2.3%(2.5%)

2.3%(2.6%)

15/3 16/3 18/3

Unsecured Loans Secured Loans yoy

18.9 20.2 21.70.20.1

0.0

2.57% 2.66% 2.78%

15/3 16/3 17/3

UnsecuredLoans

SecuredLoans

Ratio of Bad DebtExpenses

1,393 1,406 1,439 1,468

3 3 2 2

-0.0% 0.9% 2.3% 2.0%

15/3 16/3 18/3


124.3 128.2(E)

129.9130.2 131.1

1.3 1.1 0.8 0.7

1.6% 2.9% 1.4% 0.5%

15/3 16/3 18/3


125.7 129.3 131.1 131.8

1,397 1,409 1,441 1,470

218,706 221,791 (E)

230,000234,838 235,000

13.8%1.4% 5.9% 0.1%

15/3 16/3 18/3

No. of New Customers yoy

19.220.3

21.8

（528）（539）（540）（543）

747.1767.1

784.8 803.2

8


No. of Customer Accounts No. of New Customers (Unsecured)

Operating Revenue Average Loan Yield

Loan Business (ACOM)

Amount and Ratio of Bad Debt Expenses (*)


Operating Revenue

No. of New Customers

： Increased by 2.3% yoy to 784.8 billion yen, accomplishing the forecast.


： Increased by 5.9% yoy to 234 thousands, accomplishing the forecast.

< ( ) shows Unsecured Loans > (Billions of yen)

(Forecast)

(Billions of yen)


< ( ) shows average balance peraccount (Thousands of yen) >

(Thousands)


(Billions of yen)

* Amount and ratio of bad debt expenses exclude waiver of repayments accompanying interest repayment.

17/3 17/3

((E)15.15%)

((E)15.11%)

17/3 17/3

(E)1,425

1,396 1,520

(E)1,8291,651 1,738

165 190 217 238

9.9% 9.5% 9.2% 5.8%

15/3 16/3 18/3

ACOM MUCG yoy

9.5 12.78.1

1.51.7

1.5

46.3%30.0%

-33.5%

15/3 16/3 17/3

ACOM MUCG yoy

776.5 885.7

(E)1,093.3

1,005.01,101.584.6 101.7

124.7 139.0

14.5% 14.7% 14.4% 9.8%

15/3 16/3 18/3

ACOM MUCG(*) yoy

861.2987.5

1,129.7 1,240.5

34.6 41.5 47.8 53.66.3

7.38.5

9.5

38.0% 19.2% 15.4% 11.9%

15/3 16/3 18/3

ACOM MUCG yoy

40.948.8

56.463.1

11.114.4

9.6

1,562（551）

1,710（577）

1,868（604）

1,976（627）

27 28 (E)30 29 31

22 22 (E)22 24 24

15/3 16/3 18/3

ACOM MUCG

9

Guaranteed Receivables

No. of Customer Accounts


No. of Alliance Partners Prefectures with Alliance Partners

Guarantee Business (ACOM and MU Credit Guarantee)


Operating Revenue

Operating Profit

： Increased by 14.4% yoy to 1,129.7 billion yen, accomplishing the forecast.


： Decreased by 33.5% yoy to 9.6 billion yen, due to refining estimation logic of allowance.

(Thousands)

(Billions of yen) (Billions of yen) (Billions of yen)

< ( ) shows average balance per account (Thousands of yen) >

(Forecast)


(Forecast)

* “MUCG” stands for MU Credit Guarantee Co., LTD. * MU Credit Guarantee Co., LTD. commenced its operation in March 2014 as a joint venture with BTMU (ACOM owned 50.08% of

equity). It became ACOM’s wholly-owned subsidiary in December 2015.

17/3 17/3

17/3 17/3

(E)54.3

Covering 39 prefectures out of 47 prefectures in Japan

517.6 565.6

(E)977.0

615.5

258.9 320.0 389.4

14.4% 14.1% 13.5% 9.6%

15/3 16/3 18/3

BTMU (*) Regional Banks, etc. yoy

9.5 12.78.1

14.0%33.4%

-36.2%

15/3 16/3 17/3

Profit yoy

30.1 36.4 42.14.4

5.05.6

18.5% 19.8% 15.3% 12.0%

15/3 16/3 18/3

Guarantee Revenue Others yoy

776.5 885.71,005.0 1,101.5

34.641.5

47.853.6

1,396 1,520 1,651 1,738

9.9% 8.9% 8.6% 5.3%

15/3 16/3 18/3

No. of Customer Accounts yoy

13.7 16.9 21.0

1.72% 1.85% 2.02%

15/3 16/3 17/3

Bad Debt Expenses Ratio of Bad DebtExpenses

（556）（582）（608）（633）

10


No. of Customer Accounts Amount and Ratio of Bad Debt Expenses


Guarantee Business (ACOM) Guaranteed Receivables

Operating Revenue

Operating Profit

： Increased by 13.5% yoy to 1,005.0 billion yen, accomplishing the forecast.


： Decreased by 36.2% yoy to 8.1 billion yen, due to refining estimation logic of allowance.

(Forecast)


(Billions of yen) (Billions of yen)(Billions of yen)

(Thousands)

(Billions of yen)< ( ) shows average balance per account (Thousands of yen) >

Juroku Bank, Ltd.HACHIJYUNI BANK, LTD.OITA BANK, LTD.Chukyo Bank, Ltd.

(June 20)(June 20)(June 20)

Current Topics

Hokkaido Bank, Ltd.Gunma Bank, Ltd.Ashikaga Bank, Ltd.

(October 3)(November 1)(November 14)(December 5)

(August 1)Bank of Ryukyus, LTD. Introduced “Online Application Procedures

Completion System” to Guarantee Partners

New guarantee business alliance

Launched Personal Loan Guarantee Business Alliance with Yamanashi Chuo Bank, Ltd. from April 25, 2017.

17/3 17/3

17/3

(E)46.2

(E)1,620

* BTMU stands for The Bank of Tokyo-Mitsubishi UFJ, Ltd.

Target Market (ASEAN Region)

Carried out business proactively while putting primary emphasis on improving soundness of loan portfolio.

Increase both in revenue and profit owing to scale expansion.

Applied for license in May 2014. Reapplied for license in June 2016. Plans to commence business at the

earliest date upon completion of screening procedures.

Maintain and improve soundness of loan portfolio, combined with enhanced internal control structure.

Decrease both in revenue and profit as the bank implemented partial restriction on lending.

Business outline : Personal Loan Business(Loan on deeds, Revolving Loan)

Business development area : Metro Manila Establishment date of the joint corporation

: September 2017 (provisional) Commencement date of business

: July 2018 (provisional)

11

Target Market in Overseas Financial Business

[Kingdom of Thailand][EASY BUY Public Company Limited]

Equity stakeCommenced businessBusiness Outline

： 71.00%： 1996： Unsecured Loan,

Installment Loan

[Republic of Indonesia]

[Socialist Republic of Vietnam]

[Republic of the Philippines]

Equity stakeCommenced business

Business Outline

： 66.15%： 1972(became

subsidiary in 2007)： Banking

[PT. Bank Nusantara Parahyangan, Tbk.]

[ACOM VIETNAM FINANCE COMPANY LIMITED]LocationCapital

Stockholder

： Ho Chi Minh： 600.0 billion dong(About 3.0 billion yen)： ACOM (100%)

LocationCapital

： Pasig： 0.5 billion Peso(About 1.2 billion yen)

Stockholder ： ACOM 80%,ITOCHU Corporation 20%

【ACOM CONSUMER FINANCE CORPORATION】

Bank BNP (Local Currencies Basis)

EASY BUY (Local Currencies Basis)

Overseas Financial Business (Yen Basis)

2.9 3.0 4.2

7.2% 6.8% 37.1%

15/3 16/3 17/3

Profit yoy

35.6 40.5(E)

43.745.0 49.5

10.7% 13.7% 11.1% 9.9%

15/3 16/3 18/3

Receivables Outstanding yoy

10.1 11.0(E)

11.812.3 13.5

7.0% 8.8% 12.0% 9.3%

15/3 16/3 18/3

Operating Revenue yoy

Receivables Outstanding (*2) Operating Revenue Operating Profit

Receivables Outstanding Operating Revenue Operating Profit

106.453.9 -16.7

-10.5% -49.3%

15/3 16/3 17/3

Profit yoy

6,657.9 6,429.0(E)

6,950.0 5,730.0

-5.1% -3.4% -18.0% 8.7%

15/3 16/3 18/3

Receivables Outstanding yoy

1,099.2 1,016.7 (E)

1,050.0922.6 990.0

15.9% -7.5% -9.3% 7.3%

15/3 16/3 18/3

Operating Revenue yoy

Receivables Outstanding (*1) Operating Revenue Operating Profit

130.8 135.4

(E)198.6

145.9 160.464.5 56.5 45.8 49.8

19.6% -1.7% -0.1% 9.6%

15/3 16/3 18/3

33.0 39.0(E)

46.838.0 41.69.8 9.2 7.5 8.1

9.3% 12.4% -5.5% 9.0%

15/3 16/3 18/3 9.4 10.9 13.0 0.9 0.4

-0.1

7.9% 9.7% 13.5%

15/3 16/3 17/3

Overseas Financial Business (EASY BUY (EB) and Bank BNP (BNP))

12

195.4 192.0 191.8 210.2 42.9 48.2 45.6 49.7

10.1 11.1 12.6

<Exchange Fluctuation> <Exchange Fluctuation>(Forecast) (Forecast)


(Billions of yen)EB yoyBNP (Billions of yen)EB yoyBNP (Billions of yen)EB yoyBNP

(Billions of Baht)(Billions of Baht) (Billions of Baht)

(Billions of Rupiah)(Billions of Rupiah) (Billions of Rupiah)

BNP -0.4 0.1 -0.8 0.0EB 0.7 2.8 -5.0 0.0

BNP 7.3 -5.7 -0.5 0.0EB 15.1 -11.7 -4.0 0.0

17/3 17/3

17/3 17/3

17/3 17/3(Forecast) (Forecast)

5,272.6

* Exchange rates :Baht B/S: ¥3.67 (14/12), ¥3.34 (15/12), ¥3.24 (16/12), forecast ¥3.24 (17/12) P/L: ¥3.26 (14/12), ¥3.54 (15/12), ¥3.08 (16/12), forecast ¥3.08 (17/12)(on local closing dates) Rupiah B/S: ¥0.0097 (14/12), ¥0.0088 (15/12), ¥0.0087 (16/12), forecast ¥0.0087 (17/12) P/L: ¥0.0090 (14/12), ¥0.0091 (15/12), ¥0.0082 (16/12), forecast ¥0.0082 (17/12)

*1 Receivables outstanding = accounts receivable - operating loans + accounts receivable - installment + loans receivables of banking business*2 Receivables outstanding = accounts receivable - operating loans + accounts receivable - installment * Operating profit shows segment income.

* Exchange fluctuation as of current 4Q: Baht (B/S yoy -¥0.1, P/L yoy -¥0.46), Rupiah (B/S yoy -¥0.0001, P/L yoy -¥0.0009)

13

Trend of No. of Requests for Interest Repayment (ACOM)

* No. of requests which interest repayment occurs as a result of ACOM’s recalculation based on the interest ceiling as specified in Interest Rate Restriction Act from claims which lawyers or judicial scriveners accept debt consolidation

2012/3 2013/3 2014/3 2015/3 2016/3 2017/3

No. ofRequests

No. ofRequests

No. ofRequests

No. ofRequests

No. of Requests

No. of Requestsyoy yoy yoy yoy yoy

Per business

dayyoy

Per business

day

Total 90,500 -36.5 73,500 -18.8 69,900 -4.9 79,600 13.9 72,200 -9.3 295 60,700 -15.9 248

Apr. 10,100 -9.0 6,400 -36.6 6,700 4.7 6,500 -3.0 6,500 0.0

-4.7

309 5,500 -15.4

-8.2

275

May 8,900 -7.3 7,000 -21.3 6,200 -11.4 6,200 0.0 5,500 -11.3 305 5,600 1.8 294

June 9,500 -12.0 6,600 -30.5 5,600 -15.2 6,600 17.9 6,400 -3.0 290 5,800 -9.4 263

July 7,300 -24.0 6,600 -9.6 6,100 -7.6 7,100 16.4 6,100 -14.1

-13.5

277 4,900 -19.7

-20.0

245

Aug. 7,500 -11.8 5,500 -26.7 4,600 -16.4 5,900 28.3 5,300 -10.2 252 4,700 -11.3 213

Sept. 7,400 -22.1 5,800 -21.6 5,900 1.7 7,800 32.2 6,600 -15.4 347 4,800 -27.3 240

Oct. 7,300 -47.1 6,600 -9.6 6,400 -3.0 7,500 17.2 6,700 -10.7

-6.6

319 4,600 -31.3

-20.5

230

Nov. 7,100 -45.0 5,900 -16.9 5,600 -5.1 6,000 7.1 6,000 0.0 315 4,900 -18.3 245

Dec. 6,200 -52.7 5,000 -19.4 5,500 10.0 6,300 14.5 5,800 -7.9 290 5,200 -10.3 260

Jan. 5,000 -60.0 5,000 0.0 5,000 0.0 4,900 -2.0 4,700 -4.1

-12.2

247 4,500 -4.3

-15.0

236

Feb. 7,200 -56.4 6,300 -12.5 5,900 -6.3 6,900 16.9 6,200 -10.1 310 5,200 -16.1 260

Mar. 7,000 -52.4 6,800 -2.9 6,400 -5.9 7,900 23.4 6,400 -19.0 290 5,000 -21.9 227

Monthly Number of Requests for Interest Repayment (*) (%)

No. of requests

Cause

： Decreased by 15.9% yoy to 60.7 thousands; however, above our initial estimate.

： Requests from certain law offices hovered at a high level.

Trend of Loss on Interest Repayment (ACOM)

14

2012/3 2013/3 2014/3 2015/3 2016/3 2017/3 yoy

Provision Drawdown 131,907 92,168 72,393 71,359 69,238 68,828 -0.6Interest Repayment 93,952 70,502 58,461 58,803 57,600 58,852 2.2

<Reference>Cash-out basis 89,102 74,005 57,592 59,183 57,147 58,917 3.1

Bad Debt Expenses (ACOM’s voluntary waiver of repayments)

37,954 21,666 13,932 12,556 11,637 9,975 -14.3

Addition of Provision 48,807 42,968 45,493 49,859 56,638 143,728 153.8Increase or Decrease in Provision -83,100 -49,200 -26,900 -21,500 -12,600 74,900 -Provision at the End of Respective Periods 200,200 151,000 124,100 102,600 90,000 164,900 83.2

Provision for Loss on Interest Repayment （Millions of yen, %）

Unsettled

18/3 19/3 20/3 21/3

Unsettled

17/3 18/3

<Initial estimate : 164.9 billion yen>

FY March 2018<Initial estimate : 90.0 billion yen>

FY March 2017

Drew down：¥68.8 billion

Added：¥143.7 billion

<image> <image>

Adjustment

<FY March 2017, initial estimate>

Excessedamount

<FY March 2018, initial estimate>

①¥68.8 billion was drawn down from ¥90.0billion of provision.･¥58.8 billion for interest repayment+ ¥9.9 billion for voluntary waiver ofrepayment.

②¥143.7 billion was added to provisionin FY March 2017.・3Q: ¥14.4 billion + 4Q: ¥129.3 billion・Made adjustments on initial estimate

based on excessed amount and analysis on recent trend. Then calculated future estimate of amount to be requested.

③Hence, ending balance is ¥164.9 billion(reserve for next four years).

Key Points for Provision

40.5 44.7 51.5 58.46.5 7.5 8.1 8.7

15/3 16/3 18/3

(E)50.7

(E)8.540.4 43.7 (E)

51.751.7 58.9

5.9 2.6 -0.5

29.7% 8.3% 18.3% 13.7%

15/3 16/3 17/3 18/3

9.6 11.7 10.80.8 1.3 0.6

19.5% 25.2%-12.7%

15/3 16/3 17/3

Bad DebtExpenses

Change inAllowance

yoy

40.4 43.7

(E)68.1 51.7

10.4 13.111.4

28.3% 11.5% 14.2% 11.5%

15/3 16/3 18/3

ACOM EASY BUY Others yoy

19.2 20.3 21.8

13.7 16.9 21.0

2.57% 2.66% 2.78%

1.72% 1.85% 2.02%

15/3 16/3 17/3

Provision for Bad Debts

53.8 60.068.5

76.4

33.9 38.5

51.5 53.2 56.024.3 30.9

38.5

6.90% 6.93% 7.13%

15/3 16/3 17/3

NPLs Right toReimbursement

Ratio of NPLs

0.2 0.8 -1.7

44.4 10.413.1 11.4

15

yoy+4.2 billion yen

yoy+6.8 billion yen

2.6 billion yen

Provision for Bad Debts(Consolidated)

Bad Debt Expenses(ACOM) (*)

NPLs and Right to Reimbursement(ACOM) (*)

Reserves for Loan and Guarantee(ACOM)

Provision for Bad Debt(ACOM)

<Reference>Provision for Bad Debt

(EASY BUY)

(Billions of yen)


Allowance forDoubtful Accounts

Provision for Losson Guarantees

(Billions of yen)

(Forecast)

(Billions of yen)

Loan GuaranteeRatio for Loan Ratio for Guarantee

Credit Card

(Billions of yen) (Billions of yen)

* Amount and ratio of bad debt expenses exclude waiver of repayments accompanying interest repayment.* Right to reimbursement is loans in which guarantee obligations have been performed by ACOM, but not yet written-off.

Provision for Bad Debts (Consolidated)

Bad debt expenses (ACOM)

Non-performing Loans (ACOM)

： Increased by 14.2% yoy to 68.5 billion yen primarily due to scale expansions made bythree core businesses.

： Both loan and guarantee businesses saw increases primarily due to scale expansions.

： With regard to loan business, the ratio of NPLs remained stable at value of 7.13%

<Exchange Fluctuation>

17/3 17/3

(Billions of yen)

Change in Provision for Loss on Guarantees

Provision for Bad Debts

Bad Debt Expenses

yoy

Change in Allowance for Doubtful Accounts

5.5 4.8 3.2

31.6%-11.9%-32.2%

15/3 16/3 17/3

3.9 3.9 3.1

0.7% 0.1%-20.3%

15/3 16/3 17/3

93.8 94.6 96.3

20.1%0.8% 1.8%

15/3 16/3 17/3

79.2 63.8 55.4

6.3%-19.4% -13.2%

15/3 16/3 17/3

Financial Expenses

10.0 8.2(E)

16.2 7.1

3.9 3.9 3.1

5.5 4.8 3.2

-8.7% -11.2% -21.9%-6.8%

15/3 16/3 18/3

19.4 17.313.5 12.6

10.0 8.2(E)8.3 7.1 6.8

-23.7% -17.7% -13.8%-4.9%

15/3 16/3 18/3

Financial Expenses yoy

382.8 382.9

(E)590.6

393.5 394.2

176.0 171.0 215.9 231.0

1.94% 1.48% 1.27% 1.12%

15/3 16/3 18/3

558.9 553.9 609.5

-0.2 0.0 -0.30.0 0.3 -0.4 11.4 -8.4 -2.8 8.9 -6.5 -0.6

625.2

16

Financial Expenses

Funds Procurement Average Interest Rate

(ACOM)

(Consolidated)

(ACOM)

： Decreased by 21.9% yoy to 13.5 billion yen owing to improvements in funding environmentof ACOM and EASY BUY, combined with exchange fluctuation caused by strong yen.

： Increased by 10.0% yoy to 609.5 billion yen.： Decreased by 21 basis points to 1.27% owing to further replacements of borrowings

amid improving funding environment.Financial Expenses

(Consolidated)Financial Expenses

(ACOM)Funds Procurement

(ACOM)

<Reference> EASY BUYComposition Ratios by Funding Sources (ACOM) <Reference> Bank BNP

(Billions of yen)ACOM

yoyEASY BUY Bank BNP

Others(Billions of yen)

(Forecast) (Forecast) (Forecast)

(Billions of yen)

Indirect Direct Avg. Interest Rate

Ratio of FixedInterest Rate

86.7％

Ratio ofLong-term

96.6％

Current Portion ofloans payable

145.6 billion yen

MUFG33.6％

Borrowings609.5 Billion

Yen

Direct35.4％

Indirect64.6％

(Billions of yen)

FinancialExpenses yoyBalance of

Funds Procured(Billions of yen)

Deposit ofBanking Business

FinancialExpenses yoy

<Exchange Fluctuation> <Exchange Fluctuation>

17/3 17/3 17/3

Consolidated Non-consolidated2017/3 2018/3 2017/3 2018/3

Results yoy Forecasts yoy Results yoy Forecasts yoyReceivables Outstanding 2,155,920 8.6 2,312,600 7.3 1,827,945 8.8 1,951,500 6.8

Loan & Credit Card Business 822,916 3.5 850,000 3.3 822,916 3.5 850,000 3.3Guarantee Business 1,129,773 14.4 1,240,500 9.8 1,005,029 13.5 1,101,500 9.6Overseas Financial Business 191,845 -0.1 210,200 9.6 - - - -

Operating Revenue 245,148 3.1 257,000 4.8 183,997 4.9 191,600 4.1Loan & Credit Card Business 135,971 2.1 137,800 1.3 135,971 2.1 137,800 1.3Guarantee Business 56,411 15.4 63,100 11.9 47,842 15.3 53,600 12.0Overseas Financial Business 45,606 -5.5 49,700 9.0 - - - -

Operating Expenses 315,315 41.9 185,700 -41.1 269,388 54.5 137,400 -49.0Financial Expenses 13,524 -21.9 12,600 -6.8 7,153 -13.8 6,800 -4.9Provision for Bad Debts 68,538 14.2 76,400 11.5 51,786 18.3 58,900 13.7Provision for Loss on Interest Repayment 143,728 153.8 - - 143,728 153.8 - -

Other Operating Expenses 89,524 1.5 96,700 8.0 66,720 2.0 71,700 7.5Operating Profit -70,166 - 71,300 - -85,390 - 54,200 -Ordinary Profit -69,543 - 71,800 - -84,054 - 57,600 -Profit Before Income Taxes -69,497 - 71,700 - -83,986 - 57,500 -Profit -69,118 - 67,500 - -79,289 - 58,100 -

Profit Attributable to Owners of Parent -72,187 - 64,200 - - - - -

Annual Forecast for the FY March 2018

17

<P/L>

(Millions of yen, %)

Basic Policy and Forecasts on Dividends

18

Aim for enhanced return to shareholders through stable and continuous profit distribution, taking the business environment surrounding the company, shareholder’s equity and our own performance into consideration.

Basic Policy on Profit Distribution

Forecasts on Dividends Year-end dividend for the fiscal year ended March 2017 ・・・ “None (*)” Dividend for the second quarter of fiscal year ending ・・・ “None (forecast)”

March 2018 Year-end dividend for the fiscal year ending March 2018 ・・・ “Undecided”

* Year-end dividend for the fiscal year ended March 2017 assumes approval at the general meeting of shareholders scheduled onJune 2017.

Prerequisite for Resumption of Dividends<Former Prerequisites for Resumption of Dividends> We plan to resume dividend payment as soon as we can conclude that we are “free of uncertainty of requests for interest

repayment in the future,” in addition to “indisputable continuous and stable growths in three core businesses (loan & credit card, guarantee and overseas financial businesses).”

<Current Situation (4Q of FY March 2017)> Three core businesses are in stable growth trend. Request for interest repayment is trending far higher than our initial estimate. Additional provision caused significant damage to shareholder’s equity, but further risk of damaging equity has been

lowered.

<Revised Prerequisites> From viewpoint of management stability and safety, it is task of first priority to increase shareholder’s equity. While

focusing on the value of shareholders’ equity ratio, we will closely monitor difference between estimated and actually requested amount of request for interest repayment. We will resume dividend payment as soon as future concern is solved.

[Reference] Summary of Segment Income

Loan and Credit Card Business

Guarantee Business

Overseas Financial Business

Loan Servicing Business Subtotal Others Total

yoy yoy yoy yoy yoy

Operating Revenue 135,971 2.1 56,411 15.4 45,618 -5.5 7,159 8.8 245,160 3.5 184 245,344

Revenue from External Customers 135,971 2.1 56,411 15.4 45,606 -5.5 7,159 8.8 245,147 3.5 0 245,148

Revenue from Transactions with Other Operating Segments

- - - - 12 -33.0 - - 12 -33.0 183 196

Operating Expenses 229,344 58.2 46,796 36.0 32,978 -11.2 6,615 20.1 315,734 42.2 0 315,734

Segment Income -93,373 - 9,614 -33.5 12,640 13.5 544 -49.2 -70,574 - 184 -70,389

Income Amount yoySegment Income -70,574 -

Income of “Others” Category 184 -61.5

Elimination of Intersegment Transactions 97 -37.5Adjustments due to Unification of Accounting Treatment between Parent Company and Subsidiary

125 164.4

Consolidated Operating Profit -70,166 -

19

(Millions of yen, %) Operating Revenue and Segment Income

<Reference>

ACOM CO., LTD.

IR Loan Servicing, Inc.

EASY BUY Public Company Limited


Guarantee Business

Loan Servicing Business


PT. Bank Nusantara Parahyangan, Tbk.

MU Credit Guarantee Co., LTD.

ACOM CO., LTD.

Difference between Segment and Consolidated Operating Profit

[Reference] Summary of Segment Income (Excluding Impact of Addition of Provision and Change in Estimate of Allowance for Doubtful Accounts)


Guarantee Business


Loan Servicing Business Subtotal Others Total

yoy yoy yoy yoy yoy

Operating Revenue 135,971 2.1 56,411 15.4 45,618 -5.5 7,159 8.8 245,160 3.5 184 245,344

Revenue from External Customers 135,971 2.1 56,411 15.4 45,606 -5.5 7,159 8.8 245,147 3.5 0 245,148

Revenue from Transactions with Other Operating Segments

- - - - 12 -33.0 - - 12 -33.0 183 196

Operating Expenses 90,476 2.4 40,775 18.5 32,978 -11.2 6,615 20.1 170,845 3.3 0 170,845

Segment Income 45,495 1.6 15,635 8.1 12,640 13.5 544 -49.2 74,314 4.0 184 74,499

Income Amount yoySegment Income 74,314 4.0

Income of “Others” Category 184 -61.5

Elimination of Intersegment Transactions 97 -37.5Adjustments due to Unification of Accounting Treatment between Parent Company and Subsidiary

125 164.4

Consolidated Operating Profit 74,722 3.6

20

(Millions of yen, %) Operating Revenue and Segment Income

<Reference>

ACOM CO., LTD.

IR Loan Servicing, Inc.

EASY BUY Public Company Limited


Guarantee Business

Loan Servicing Business


PT. Bank Nusantara Parahyangan, Tbk.

MU Credit Guarantee Co., LTD.

ACOM CO., LTD.

Difference between Segment and Consolidated Operating Profit

[Reference] Medium-term Management Plan (2017/3 – 2019/3)

Foundation Spirit Circle of TrustOrigins of Company

Name Affection COnfidence Moderation

Corporate Philosophy

ACOM, based on the spirit of human dignity and in putting customers first, is contributing to the realization of an enjoyable and affluent personal life, and to improving lifestyle, through creative and innovative management.

Management Vision Be the “leading company” which provides prime satisfactions to utmost number of customers and win their trust in return

Key Business Domains

Domestic Loan and credit card business, and guarantee business

Overseas Loan business in ASEAN region

Medium-term Management Policy

With expeditious reactions to environmental changes, ACOM will establish a solid management base which can support continuousgrowth, while creating services which exceed customers' expectations.

Priority Subjects in Following 3 Years Key Measures to be Taken

① Advance compliance-oriented corporate culture

② Establish and enhance human resources basis

③ Increase new customer acquisition via enhanced marketing

④ Continuous increases in both loans receivable and number of customer accounts while maintaining a sound portfolio

⑤ Enhance and establish competitive advantages in guarantee business

⑥ Establish basis as one of core businesses in overseas financial business segment

⑦ Enhance groupwide collection basis

⑧ Achieve cost optimization

⑨ Accommodate to developing ICT and improve system infrastructure

Loan and credit card business

Prompt accommodation to ever-changing internet environment Enhance screening and promotion for customer acquisition Enhance revenue via credit card issuances Review utilization and role of channel network Expand business scale by increasing the rate of existing customers

using our services repetitively

Guarantee business

Expand business scale by utilizing knowhow from loan business Optimize guarantee screening procedures and efficient management

of reception centers Acquire new alliance partners in prefectures without existing alliance

partner Enhance both marketability and profitability

Overseas financial business

EASY BUY Further enhance competitive strength of Umay+ brand Maintain and improve soundness of portfolio (loan portfolio and

scoring model) Construct next-generation IT system

Bank BNP Expand scale of unsecured consumer loan business Maintain and improve soundness of loan portfolio, combined with

enhanced internal control structure Advance into new regions and establish a revenue basis

<Measures to be taken by 3 core businesses>

21

41.4 44.7 50.3 42.9

11.1 14.4 9.6 18.0 10.1 11.1 12.6 12.7

6.9% 12.9% 2.0% 2.6%

15/3 16/3 17/3 19/3

128.7 133.1 135.9 142.0

40.9 48.8 56.4 65.8 42.9 48.2 45.6 52.9

8.4% 8.4% 3.1% 12.6%

15/3 16/3 17/3 19/3

768.7 794.9 822.9 871.6

861.2 987.5 1,129.7 1,283.7 195.4 192.0 191.8

230.4

9.9% 8.3% 8.6% 20.8%

15/3 16/3 17/3 19/3

-8.3 11.1 -11.8 14.4

-93.39.6

10.1 11.1

12.6

14.0 15.5

-70.1

[Reference] Quantitative Targets for the Medium-term Management Plan (2017/3 – 2019/3)

63.972.1 73.5

15/3 16/3 17/3

1,985.31,833.92,155.9

2,398.8245.1219.2

267.6237.6

74.0

22

CAGR+6.5% CAGR

+4.0%

CAGR+0.9%

（6.3%）

（9.1%）

（3.1%）

（3.2%）

（10.5%）

（2.2%）

（4.6%）

（7.7%）

（-1.4%）

Loans Receivable Operating Revenue

<Target Management Indices [Fiscal Year Ending March 2019]>We aim to achieve consolidated ROE no less than 12%, and shareholders’ equity ratio of 20%, computed using the sum of consolidated total assets and guaranteed receivables.

<Capital Policy and Dividend Payout Ratio under the Medium-term Management Plan> Place the Maximum Priority to Enhancing Management Stability through Enhanced Internal Reserves: we will closely monitor both the “consolidated shareholders’ equity

ratio” and “shareholders’ equity ratio computed using the sum of consolidated total assets and guaranteed receivables.” We will review the target value of shareholders’ equity ratio, determine and announce proactive strategic investments and dividend payout ratio as soon as we can

conclude that we are “free of uncertainty of requests for interest repayment in the future,” in addition to “indisputable continuous and stable growths in three corebusinesses.”

<Reference> Operating Profit Excluding Provision for Loss on Interest Repayment

Operating Profit

OtherL.C Business (*)


GuaranteeBusiness

(Billions of yen)( ) CAGR for each

business

yoy OtherL.C Business


GuaranteeBusiness


business

yoy

OtherL.C Business


GuaranteeBusiness


business

yoy


(Forecast)

* “L.C Business” stands for loan and credit card business.[Preconditions] (1) Exchange rate at overseas financial business : Baht B/S ¥3.19, P/L ¥3.20 (2017/3 – 2019/3) Rupiah B/S ¥0.0085, P/L ¥0.0088 (2017/3 – 2019/3)

(2) Operation in Vietnam is not included in consolidated business results as it is still unclear when we are able to commence operation there.

23

Reference

Reference:Public & Investor Relations OfficeTreasury Department

Tel: +81-3-5533-0861E-mail: [email protected]

The figures contained in this presentation material with respect to ACOM‘s plans and strategies and other statements thatare not historical facts are forward-looking statements about the future performance of ACOM which are based onmanagement’s assumptions and belief in light of the information currently available to it and involve risks and uncertainties.

Therefore, actual results may differ from those in the forward-looking statements due to various factors.Potential risks and uncertainties include, but not limited to, general economic conditions in ACOM's market and changes in

the size of the overall market for consumer loans, the rate of default by customers, the fluctuations in number of cases ofclaims from and the amount paid to customers who claim us to reimburse the portion of interest in excess of the interestceiling as specified in the Interest-Rate Restriction Law, the level of interest rates paid on the ACOM's debt and legal limitson interest rates charged by ACOM.

Disclaimer

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