The Second Quarter Financial Results for Fiscal Year Ending March 2013

The Second Quarter Financial Results for Fiscal Year Ending March 2013 ACOM CO., LTD. http://www.acom.co.jp/ir/english November 9, 2012

Conference Schedule Title Presenter Approx. Duration Page No. 1. Business Environment 4 2. Key Topics Shigeyoshi Kinoshita 5 25 min. Chairman, President & CEO 3. Financial Results Summary 6 4. Forecast for the FY March 2013 10 1. Financial Results Summary (ACOM) Tomohiro Nakazawa 14 Chief PR & IR Officer 20 min. 2. Major Figures (ACOM) Treasury Department 15 Question and Answer Session 30 min. The figures contained in this presentation material with respect to ACOM s plans and strategies and other statements that are not historical facts are forwardlooking statements about the future performance of ACOM which are based on management s assumptions and belief in light of the information currently available to it and involve risks and uncertainties and actual results may differ from those in the forwardlooking statements due to various factors. Potential risks and uncertainties include, without limitation, 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 of claims from and the amount paid to customers who claim us to reimburse the portion of interest in excess of the interest ceiling as specified in the InterestRate Restriction Law, the level of interest rates paid on the ACOM's debt and legal limits on interest rates charged by ACOM. 2

The 2 nd Financial Results Highlight nd Quarter for the Fiscal Year Ending March 2013 (1) Business Environment (2) Key Topics (Consolidated) (3) Financial Results Summary (4) Business Results by Segment (5) Forecast for the FY March 2013 (6) Succession of Guarantee Business of Mobit Shigeyoshi Kinoshita Chairman, President & CEO

Business Environment Business Environment of Industry In addition to existing consumer finance companies and credit card companies, some banks made fullscale entry into the industry, leading to changes in competitive nature of the market. Business environment still remains to be severe, due to issues of requests for interest repayment, etc. Despite shrinking trend in the market, some good signs are observed: the pace of decrease in receivables outstanding is decelerating. Nonbank industry has further promoted their overseas expansion, mainly in southeast Asia where remarkable growth is marked. Business Environment of ACOM Requests for interest repayment: although decreasing trend continues, unclarity still remains. Loan business: signs of recovery, receivables outstanding as of September 30, 2012 remained flat in monthonmonth basis. Guarantee business: smoothly expanded as we focused on operational expansion of existing partners. Overseas business: smooth expansion, mainly in EASY BUY in Kingdom of Thailand. 4

Key Topics (Consolidated) Compared to Previous Second Quarter Compared to Forecast (2012/5/10) Ordinary Income and Loss Operating Revenue Loan Business Guarantee Business Overseas Business Operating Expenses Financial Expenses Provision for Bad Debts Other Operating Expenses Operating Income and Ordinary Income Decreased Increased Increased Decreased Decreased Decreased Decreased Operating revenue surpassed the forecasted value, mainly in loan business. Provision for bad debts fell below the value in forecast. This is mainly attributable to improvement in quality of loan portfolio. Therefore, business result outperformed the forecast. Extraordinary Income, Loss, etc. <Reference> Interest Repayment Related Extraordinary Income Income Taxesdeferred Net Income Increased Increased Decreased As initially planned, no additional provision for loss on interest repayment was made, for the actual requested amount of interest repayment was within estimated range. 5

Financial Results Summary Consolidated Nonconsolidated (Millions of yen) 2012/9 Compared to forecast 2012/9 Compared to forecast Results Operating Revenue 97,860 9.4 3,460 3.7 79,210 11.2 2,910 Guarantee Business 11,940 2.6 11,940 Loan Servicing Business 3,753 11.3 Results Loan Business 65,866 13.4 65,866 13.4 2.6 3.8 Financial Business at Overseas 14,447 6.0 Operating Expenses 69,497 8.5 3,103 4.3 55,132 10.0 2,868 Financial Expenses 11,494 4.9 8,416 Provision for Bad Debts 21,861 20.6 18,361 Provision for Loss on Interest Repayment Other Operating Expenses 36,140 0.5 28,353 Operating Income 28,363 11.7 6,563 30.1 24,077 14.1 5,777 Ordinary Income 28,788 12.0 6,588 29.7 26,393 8.0 6,893 Income Before Income Taxes 31,808 29,943 Income Taxescurrent 990 20.1 25 Income Taxesdeferred 2,436 40.0 1,948 2.0 Net Income 27,243 4.0 4,343 19.0 27,970 4.8 5,770 7.2 20.8 2.1 5.4 16.7 13.9 4.9 31.6 35.3 26.0 6

Primary Indices Loan Business (ACOM) 2011/9 2012/9 (Millions of yen) Results Results (Forecast) Receivables Outstanding 846,999 731,205 115,794 13.7 713,300 No. of Customer Accounts 1,640,333 1,451,077 189,256 11.5 1,424,300 No. of New Customers 76,147 84,950 8,803 11.6 170,000 Operating Revenue 76,069 65,866 10,202 13.4 123,400 10.7 9.6 11.7 16.6 Accounts Receivableoperating Loans by Interest Rate (Unsecured Consumer Loans, Outstanding Basis) % 2010/3 2010/9 2011/3 2011/9 2012/3 2012/9 (Forecast) Over 18% 38.8 30.4 26.2 20.9 16.8 14.6 9.3 18% or less 61.2 69.6 73.8 79.1 83.2 85.4 90.7 Average Loan Yield (Unsecured Consumer Loans) % 2010/3 2010/9 2011/3 2011/9 2012/3 2012/9 (Forecast) Loan Yield 18.41 17.53 17.18 16.52 16.47 16.20 15.89 Ratio of Customers in Breach of the Regulation on the Total Borrowing Amount (Unsecured Consumer Loans, No. of Customer Accounts Basis) % 2010/3 2010 2010/6 2010/9 2011/3 2011/9 2012/3 2012/9 (Forecast) Corresponding Ratio 58.0 57.2 47.9 42.0 36.3 31.5 Decreased by 10.5% points in a year Decreased by 26.5% points since the introduction of the regulation 7

Guarantee and Loan Servicing Business Primary Indices (Millions of yen) 2011/9 2012/9 (Forecast) Results Results Guaranteed Receivables 464,202 557,018 92,815 20.0 570,000 17.9 ACOM Guarantee Business No. of Accounts with Outstanding Balance No. of Alliance Partners Operating Revenue 925,582 1,092,810 167,228 18.1 1,120,500 18.0 19 22 11,636 11,940 304 2.6 23,800 3.7 Operating Income (*) 3,858 3,837 20 0.5 IR Loan Servicing Loan Servicing Business Receivables Outstanding 10,908 9,077 1,831 16.8 10,000 1.6 No. of Customer Accounts 305,302 320,715 15,413 5.0 Total Principal 3,717,871 3,978,004 260,132 7.0 Operating Revenue 4,229 3,753 475 11.3 6,800 9.3 Operating Income (*) 558 695 137 24.5 * Segment income is listed here as operating income. 8

Financial Business at Overseas Primary Indices (Millions of yen/baht, Billions of rupiah) 2011/9 2012/9 EASY BUY (* ) (Kingdom of Thailand) 1 (Republic of Indonesia) Bank BNP (* 1 ) Loan Business Installment Sales Finance Business Banking Business Receivables Outstanding Baht No. of Customer Accounts Operating Revenue Baht Receivables Outstanding Baht No. of Customer Accounts Operating Revenue Baht 70 57 11 16.9 112 13.5 Receivables Outstanding 41,872 47,046 5,173 12.4 48,000 15.6 Rupiah No. of Customer Accounts Rupiah Results Results (Forecast) 68,940 26,313 798,242 10,777 3,991 807 308 25,692 188 4,407.5 280.6 71,000 28,514 885,500 11,190 4,371 763 306 23,858 148 5,534.8 353.1 2,201 87,258 379 1 1,834 1,127.2 72.4 8.4 9.5 0.5 25.6 25.8 28,988 8,539 1,000 374 5,274.7 Operating Revenue 2,666 3,107 441 16.6 6,700 20.8 2,060 413 43 39 10.9 21.2 736.2 5.1 3.9 41.2 29.6 10.5 9,276 27,390 18,114 195.3 3.0 3.8 5.4 7.1 77,400 925,800 22,800 30,200 300 14.5 9.3 5.9 31.7 11.8 22.1 Total Overseas Business Operating Revenue 13,631 14,447 815 6.0 29,800 8.7 Operating Income (*2) 3,036 3,423 387 12.8 *1 EASY BUY: EASY BUY Public Company Limited Bank BNP: PT. Bank Nusantara Parahyangan, Tbk. *2 Segment income is listed here as operating income. 9

Forecast for the Fiscal Year Ending March 2013 (Millions of yen) Consolidated Nonconsolidated 2012/3 2012/3 Results (Forecast) Results (Forecast) Operating Revenue 210,456 186,900 11.2 173,837 149,700 13.9 Loan Business 147,883 123,400 16.6 147,883 123,400 16.6 Guarantee Business 22,950 23,800 3.7 22,950 23,800 3.7 Loan Servicing Business 7,495 6,800 9.3 Financial Business at Overseas 27,415 29,800 8.7 Operating Expenses 179,570 145,600 18.9 150,830 115,100 23.7 Financial Expenses 24,145 24,300 0.6 18,118 17,700 2.3 Provision for Bad Debts 34,725 47,200 35.9 26,048 37,700 44.7 Provision for Loss on Interest Repayment 48,807 48,807 Other Operating Expenses 71,892 74,100 3.1 57,855 59,700 3.2 Operating Income 30,885 41,300 33.7 23,007 34,600 50.4 Ordinary Income 32,219 42,000 30.4 26,461 37,200 40.6 Income Before Income Taxes 33,377 44,400 33.0 27,550 39,600 43.7 Income Taxescurrent 2,127 65 100 53.8 Income Taxesdeferred 7,753 6,632 Net Income 21,464 40,500 88.7 20,853 39,500 89.4 10

Succession of Guarantee Business of Mobit 1 Purpose and Summary of the Basic Agreement On September 2012, ACOM formed a basic agreement with The Bank of TokyoMitsubishi UFJ, Ltd. to commence consideration of establishing a joint venture to operate a guarantee business of Mobit Co., Ltd. Maximize value of concerned guarantee business by utilizing ACOM s expertise Schedule Onward April 2013: Establishment of a new guarantee company July 2013: Agreement of absorptiontype company split October 2013 onward: Effective date of absorptiontype company split <Reference> Scheme of Business Succession ACOM The Bank of Tokyo Mitsubishi UFJ, Ltd. New Guarantee Company [Will be established on April 2013 (Provisional)] Absorptiontype company split will take place on October 2013 onward Mobit Co., Ltd. Guarantee Business Loan Business 11

Succession of Guarantee Business of Mobit 2 Development after Succession The number of prefectures with guarantee alliance partners will increase from 20 to 34 including those which will be guaranteed by the new guarantee company. Improve efficiency in guarantee business by utilizing ACOM s management resources. Increase guaranteed receivables through expansion in existing partners and cultivation of new partners. <Reference> Prefectures with Guarantee Alliance Partners 12

The 2 nd Financial Results Highlight nd Quarter for the Fiscal Year Ending March 2013 (1) Financial Results Summary (ACOM) (2) Major Figures (ACOM) Tomohiro Nakazawa Chief PR & IR Officer Treasury Department

Financial Results Summary (ACOM) (Millions of yen) 2012/9 Compared to Forecast (Forecast) Results Operating Revenue 79,210 11.2 2,910 3.8 149,700 13.9 Loan Business 65,866 13.4 123,400 16.6 Guarantee Business 11,940 2.6 23,800 3.7 Operating Expenses 55,132 10.0 2,868 4.9 115,100 23.7 Financial Expenses 8,416 7.2 17,700 2.3 Provision for Bad Debts 18,361 20.8 37,700 44.7 Provision for Loss on Interest Repayment Other Operating Expenses 28,353 2.1 59,700 3.2 Operating Income 24,077 14.1 5,777 31.6 34,600 50.4 Ordinary Income 26,393 8.0 6,893 35.3 37,200 40.6 Income Before Income Taxes 29,943 5.4 39,600 43.7 Income Taxescurrent 25 16.7 100 53.8 Income Taxesdeferred 1,948 13.9 Net Income 27,970 4.8 5,770 26.0 39,500 89.4 14

Loan Business (ACOM) [Receivables Outstanding and No. of Customer Accounts] Trend of Receivables Outstanding and No. of Customer Accounts in Unsecured Consumer Loans (Billions of yen) 1,500 May 2009: Absorbed Loan Business of DC Cash One (Thousands) 3,200 1,250 June 2010: Full Enforcement of Money Lending Business Act 2,800 1,000 750 1,074.8 1,041.1 982.6 926.6 May 2012: Transferred a part of balance to Jibun Bank [Transferred amount: approximately 43.5 billion yen (*)] 878.7 851.3 825.8 798.5 779.9 722.9 713.7 698.0 2,400 500 250 1,941 1,890 Receivables Outstanding 1,830 1,764 1,705 No. of Customer Accounts 1,669 1,634 1,595 1,569 1,461 1,445 1,419 2,000 1,600 Yearonyear 0 [excluding transfer of balance] * 1,200 '10/3 '10/6 '10/9 '10/12 '11/3 '11/6 '11/9 '11/12 '12/3 '12/6 '12/9 '13/3(Forecast) 15.1 13.6 10.5 5.5 11.7 14.1 16.2 18.2 18.2 16.0 13.8 11.2 [10.0] [8.3] [5.0] Quarteronquarter [excluding transfer of balance] * 2.8 3.1 5.6 5.7 5.2 3.1 3.0 3.3 2.3 7.3 [1.7] 1.3 * On May 12, 2012, ACOM transferred a part of balance to Jibun Bank and was entrusted with guarantee business of transferred balance in return. 15

Loan Business (ACOM) [No. of Applications, No. of New Customers and Lending Ratio] Trend of No. of Applications, No. of New Customers and Lending Ratio in Unsecured Consumer Loans 50,000 45,000 40,000 Major Contributing Factors 1. Improved public awareness on the regulation on the total borrowing amount 2. Implementation of marketing measures to target customer segment 3. Improvement in credit screening models 4. Amendments in screening processes 70.0% 60.0% 35,000 30,000 37.3% 38.0% 38.3% 38.9% 43.7% 46.1% 43.7% 45.5% 45.3% 44.2% 44.6% 45.3% 44.8% 46.3% 45.7% 43.2% 44.8% 45.3% 47.1% 47.5% 45.9% 45.8% 47.0% 47.0% 50.0% 40.0% 25,000 37.1% 33.5% 36.2% 38.4% 38.2% 20,000 33.1% No. of Applications (*) 30.0% 15,000 Lending Ratio (*) 20.0% 10,000 5,000 No. of New Customers 10.0% 0 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 Fiscal Year March 2011 Fiscal Year March 2012 2Q of FY March 2013 [Forecast: 125,000; Result: 128,399] [Forecast: 140,000; Result: 152,257] [Result: 84,950] Quarterly 2010/6 2010/9 2010/12 2011/3 2011/6 2011/9 2011/12 2012/3 2012/6 No. of New Customers 35,203 29,044 30,095 34,057 39,856 36,291 36,009 40,101 43,516 * No. of Applications and Lending Ratio above do not include numbers of tieup cards. 2012/9 41,434 0.0% (Forecast) 170,000 16

Guarantee Business (ACOM) [Guaranteed Receivables and No. of Accounts] Trend of Guaranteed Receivables and No. of Accounts (Billions of yen) 600 400 200 September 2009: Succeeded Guaranteed Receivables of MULC (*1) 317.2 319.1 324.9 670 676 683 October 2010: Succeeded Guaranteed Receivables of MUN (*1) 431.8 443.4 449.6 464.2 466.5 881 899 910 925 926 Guaranteed Receivables May 2012: Balance entrusted from Jibun Bank [Entrusted amount: approximately 43.5 billion yen (*2)] 483.2 949 No. of Accounts 540.3 557.0 1,074 1,092 (Thousands) 2,000 570.0 1,120 1,600 1,200 800 400 YOY 0 [Excluding entrusted balance] *2 0 '10/3 '10/6 '10/9 '10/12 '11/3 '11/6 '11/9 '11/12 '12/3 '12/6 '12/9 '13/3 (Forecast) Yearonyear 20.2 20.0 174.1 168.7 3.6 38.3 39.8 40.9 42.9 8.0 9.0 [10.5] [10.6] 17.9 [9.0] *1 MULC: The Mitsubishi UFJ Home Loan Credit Co., Ltd. MUN: Mitsubishi UFJ NICOS Co., Ltd. *2 On May 12, 2012, ACOM transferred a part of balance to Jibun Bank and was entrusted with guarantee business of transferred balance in return. 17

Fund Procurements (ACOM) (Millions of yen, %) 2012/3 2012/9 Results C.R. Results ytd C.R. (Forecast) C.R. Borrowings 611,827 4.9 100.0 582,149 12.8 4.9 100.0 568,500 7.1 100.0 Indirect 378,198 6.1 61.8 384,554 2.8 1.7 66.1 355,700 5.9 62.6 Direct 233,628 3.1 38.2 197,594 27.3 15.4 33.9 212,800 8.9 37.4 Straight Bonds 200,836 1.0 32.8 170,052 27.9 15.3 29.2 Asset Based Lending 32,792 14.3 5.4 27,542 23.0 16.0 4.7 Borrowings with Fixed Rate 552,612 1.1 90.3 522,199 13.5 5.5 89.7 Average Nominal Interest Rate on Funds Procured during the Year Term Average of Longterm Prime Rate Amount to be paid within one year Cash and Cash Equivalents and Commitment Facilities 2.12 2.27 1.45 1.29 233,094 265,253 286,286 300,923 Cash and Deposits 110,294 131,931 Shortterm Loans Receivable (Reverse repurchase agreement) 39,991 29,992 Certificate of Deposits 36,000 39,000 Commitment Facilities (Unused Amount) 100,000 100,000 18

Nonperforming Loans (ACOM) Trend of Nonperforming Loans (Billions of yen) 150 15.0% 120 90 60 109.1 9.87 Loans to Borrowers in Bankruptcy or under Reorganization 109.8 10.27 107.1 108.6 61.0 61.9 59.6 60.0 10.61 11.41 Loans in Arrears 98.3 49.9 10.89 93.6 44.6 10.70 89.8 42.3 10.59 Ratio of Nonperforming Loans YoY change: 24.8 billion yen 81.6 35.3 74.3 69.6 30.1 9.96 26.7 9.29 9.39 65.0 24.1 8.88 14.0% 13.0% 12.0% 11.0% 10.0% 9.0% 30 Loans Past due by Three Months or more 8.0% 0 Restructured Loans '10/3 '10/6 '10/9 '10/12 '11/3 '11/6 '11/9 '11/12 '12/3 '12/6 '12/9 7.0% 6.0% 19

Provision for Bad Debts (ACOM) Trend of Provision for Bad Debts 2011/6 2011/9 2011/12 2012/3 2012/6 2012/9 (Millions of yen) (Forecast) Provision for Bad Debts 10,251 23,197 33,686 26,048 7,451 18,361 37,700 Bad Debt Expenses 14,848 28,533 40,084 49,442 9,871 18,497 41,400 Loss on Sales of Accounts Receivableoperating Loans Increase or Decrease in Allowance for Doubtful Accounts Increase or Decrease in Provision for Loss on Guarantees 661 661 832 185 100 4,496 5,696 6,398 21,686 3,100 981 2,900 100 300 660 2,540 680 660 900 Allowance for Doubtful Accounts 58,400 57,200 56,500 41,200 38,100 40,200 38,300 Provision for Loss on Guarantees 8,670 8,470 8,110 6,230 6,910 6,890 5,300 The Points in Provision for Bad Debts <Bad Debt Expenses> Decreased by 10.0 billion yen due to improvement in quality of loan portfolio and decrease in receivables outstanding. <Allowance for Doubtful Accounts> Decreased by 1.0 billion yen ytd mainly due to decrease in receivables outstanding resulting from transfer of a part of card loan business to Jibun Bank. (Note) Increased by 2.1 billion yen quarteronquarter despite improving quality of loan portfolio. This is due to conservative partial amendment in calculation method of allowance for doubtful accounts. <Provision for Loss on Guarantees> Increased by 0.6 billion yen despite improving quality of guaranteed receivables. This resulted as Jibun Bank entrusted ACOM with new guarantee business in the three months ended June 30, 2012. 20

No. of Requests for Interest Repayment and Interest Repayment (ACOM) Trend of Monthly No. of Requests for Interest Repayment (*1) and Interest Repayment (Cashout Basis) 2011/3 2012/3 (Millions of yen) No. of Requests for Interest Repayment Interest Repayment No. of Requests for Interest Repayment Per Business Day (*2) Interest Repayment No. of Requests for Interest Repayment Per Business Day (*2) Interest Repayment Total 142,600 2.9 104,451 90,500 36.5 369 89,102 37,900 25.2 Apr. 11,100 22.4 6,935 10,100 9.0 505 7,231 6,400 36.6 May 9,600 23.2 7,565 8,900 7.3 468 8,406 7,000 21.3 June 10,800 23.4 7,168 9,500 12.0 432 7,805 6,600 30.5 July 9,600 26.2 7,683 7,300 24.0 365 7,675 6,600 9.6 Aug. 8,500 19.8 7,986 7,500 11.8 326 7,607 5,500 26.7 Sept. 9,500 18.8 8,240 7,400 22.1 370 7,500 5,800 21.6 Oct. 13,800 1.5 4,385 7,300 47.1 365 6,839 Nov. 12,900 15.2 8,244 7,100 45.0 355 6,848 Dec. 13,100 6.5 8,933 6,200 52.7 295 8,011 Jan. 12,500 33.0 9,742 5,000 60.0 278 7,471 Feb. 16,500 44.7 12,469 7,200 56.4 343 7,133 Mar. 14,700 15.7 15,098 7,000 52.4 333 6,570 303 320 333 314 314 239 305 39,320 7,076 7,431 6,423 5,766 6,244 6,377 *1 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 *2 No. of requests for interest repayment divided by the No. of ACOM s business days in the month 21

Provision for Loss on Interest Repayment (ACOM) Trend of Provision for Loss on Interest Repayment (Millions of yen) 2012/3 1Q 2Q 3Q 4Q Total 1Q 2Q Total (Forecast) Provision for Loss on Interest Repayment 48,807 48,807 Interest Repayment 23,373 23,524 22,235 24,819 93,952 19,552 17,644 37,197 Interest Repayment (Cashout basis) 23,443 22,783 21,699 21,175 89,102 20,931 18,388 39,320 Bad Debt Expenses (ACOM s voluntary waiver of repeyment) Increase or Decrease in Provision for Loss on Interest Repayment 10,909 8,879 8,581 9,583 37,954 6,209 5,601 11,810 34,283 32,404 30,817 14,404 83,100 25,761 23,246 49,008 Provision for Loss on Interest Repayment 249,016 216,612 185,795 200,200 174,438 151,191 <Reference> Image of Requests for Interest Repayment: Estimated Amount and Actual Amount Requested Within estimate Actual Amount Estimated Amount No additional provision was made as the actual requested amount of interest repayment was within estimate for the six months ended September 30, 2012. Requests from existing customers have decreased more than expected. Decreasing trend of requests from customers who have completely paid off their loans is decelerating. We will closely monitor the trend of requests from customers who have completely paid off their loans. Moreover, we will review difference between estimate and actual amount requested every quarter to determine necessity for additional provision. '12/3 '13/3 '14/3 '15/3 '16/3 22

Reference Reference: Public & Investor Relations Office Treasury Department Tel: +81355330861 Email: ir@acom.co.jp 23