LAST UPDATE 2016/4/7. J Trust Research Report by Shared Research Inc.

Research Report by Shared Research Inc. Shared Research Inc. has produced this report by request from the company discussed in the report. The aim is to provide an owner s manual to investors. We at Shared Research Inc. make every effort to provide an accurate, objective, and neutral analysis. In order to highlight any biases, we clearly attribute our data and findings. We will always present opinions from company management as such. Our views are ours where stated. We do not try to convince or influence, only inform. We appreciate your suggestions and feedback. Write to us at sr_inquiries@sharedresearch.jp or find us on Bloomberg. 01/89

INDEX Key financial data ----------------------------------------------------------------------------------------------------- 3 Executive Summary --------------------------------------------------------------------------------------------------- 4 Recent updates --------------------------------------------------------------------------------------------------------- 5 Highlights ----------------------------------------------------------------------------------------------------------------------- 5 Trends and outlook --------------------------------------------------------------------------------------------------- 6 Quarterly trends and results ----------------------------------------------------------------------------------------------- 6 Business ----------------------------------------------------------------------------------------------------------------- 22 Description ------------------------------------------------------------------------------------------------------------------- 22 Strengths and weaknesses ----------------------------------------------------------------------------------------------- 30 Market and value chain --------------------------------------------------------------------------------------------------- 33 Historical performance ---------------------------------------------------------------------------------------------------- 40 Income statement ---------------------------------------------------------------------------------------------------------- 55 Balance sheet ---------------------------------------------------------------------------------------------------------------- 58 Cash flow statement ------------------------------------------------------------------------------------------------------- 65 Other information ---------------------------------------------------------------------------------------------------- 67 History -------------------------------------------------------------------------------------------------------------------------- 67 News and topics ------------------------------------------------------------------------------------------------------------ 68 Major shareholders --------------------------------------------------------------------------------------------------------- 86 Shareholder return --------------------------------------------------------------------------------------------------------- 86 Profile --------------------------------------------------------------------------------------------------------------------------- 88 02/89

J Trust > Key financial data Key financial data Income statement FY03/09 FY03/10 FY03/11 FY03/12 FY03/13 FY03/14 FY03/15 FY03/16 (JPYmn) Cons. Cons. Cons. Cons. Cons. Cons. Cons. Est. Operating revenue 4,946 16,541 16,908 24,508 55,683 61,926 63,281 81,900 YoY 54.5% 234.4% 2.2% 44.9% 127.2% 11.2% 2.2% 29.4% Gross profit 2,992 13,243 11,776 19,969 34,897 35,586 33,996 YoY 30.7% 342.6% -11.1% 69.6% 74.8% 2.0% -4.5% GPM 60.5% 80.1% 69.6% 81.5% 62.7% 57.5% 53.7% Operating profit or loss 240 4,165 4,324 5,539 12,005 13,745-5,217 7,500 YoY 943.5% 1635.4% 3.8% 28.1% 116.7% 14.5% - - OPM 4.9% 25.2% 25.6% 22.6% 21.6% 22.2% -8.2% 9.2% Recurring profit or loss 296 4,303 4,323 5,486 13,704 13,351-2,385 YoY 854.8% 1353.7% 0.5% 26.9% 149.8% -2.6% - RPM 6.0% 26.0% 25.6% 22.4% 24.6% 21.6% -3.8% Net income 306 4,108 3,233 34,500 13,309 11,145 10,143 4,700 YoY 206.0% 1242.5% -21.3% 967.1% -61.4% -16.3% -9.0% - Net margin 6.2% 24.8% 19.1% 140.8% 23.9% 18.0% 16.0% 5.7% Per share data Number of shares ('000) 27,652 29,752 30,009 30,225 63,162 118,386 118,589 EPS (JPY) 5.6 69.6 54.3 576.0 214.4 109.7 85.9 40.9 EPS (fully diluted) (JPY) - 69.1 53.9 567.7 208.3 108.1 85.6 Dividend per share (JPY) 3.0 10.0 10.0 12.0 7.0 10.0 10.0 12.0 Book value per share (JPY) 124.1 185.0 232.4 798.2 1,013.9 1,502.5 1,591.1 Balance sheet (JPYmn) Cash and equivalents 3,380 7,163 14,846 10,362 62,140 132,235 141,742 Operating loans 28,236 18,039 11,725 27,713 18,227 49,242 65,315 Loans by banking business - - - - 48,210 46,701 224,401 Advances paid-installment 6,343 3,825 1,443 65,024 48,133 39,776 1,395 Purchased receivables 1,313 5,407 4,008 2,310 2,529 2,527 8,647 Total current assets 36,627 35,714 34,293 106,963 189,262 298,790 468,260 Tangible fixed assets, net 1,629 1,079 1,166 5,095 10,836 12,309 9,352 Other fixed assets 1,364 644 1,947 4,366 11,842 15,001 16,002 Total assets 39,811 37,999 37,862 117,546 218,706 334,736 540,718 Notes discounted 702 783 1,291 1,776 1,500 2,173 2,226 Short-term debt 2,768 4,520 3,980 5,576 8,071 25,258 13,979 Deposits by banking business - - - - 73,194 77,142 287,452 Provision for loss on interest payment 2,147 3,048 3,359 10,172 7,124 4,055 1,089 Total current liabilities 27,246 11,305 10,264 43,995 99,471 118,904 322,598 Long-term debt 413 11,368 10,814 13,670 30,487 16,329 13,250 Provision for loss on interest payment 4,470 3,840 2,382 9,711 12,052 9,382 5,219 Provision for loss on guarantees 171 238 203 290 4,017 441 422 Total fixed liabilities 5,718 15,687 13,635 24,079 48,339 31,601 23,254 Total liabilities 32,964 26,993 23,900 68,074 147,810 150,505 345,853 Net assets 6,846 11,005 13,961 49,471 70,895 184,230 194,865 Interest-bearing debt 3,883 16,671 16,085 21,022 40,058 43,760 29,455 Cash flow statement (JPYmn) Operating cash flow -2,847-6,819 9,234-16,489 9,378 11,434 15,452 Investment cash flow 1,997-34 -310-12,424 36,764-17,775-15,148 Financing cash flow 871 10,067-908 24,165-2,441 74,464-20,593 Financial ratios ROA 1.1% 11.1% 11.4% 7.1% 8.2% 4.8% -0.5% ROE 4.6% 46.1% 26.0% 111.4% 23.8% 9.3% 5.6% Equity ratio 17.2% 29.0% 36.9% 42.1% 32.4% 55.0% 36.0% Source: Shared Research based on company data Note: Year-on-year comparisons with earnings results for FY03/15 have been omitted in view of the company s decision to switch from Japan GAAP to IFRS in FY03/16 and subsequent use of IFRS in calculating forecasts. 03/89

J Trust > Executive Summary Executive Summary Core businesses finance in Korea and SE Asia J Trust s businesses span a broad range of finance, real estate and amusement. Over the medium term, finance businesses in Japan, Korea and Southeast Asia are likely to be the core sources of operating revenue and profit. Since 2009, the company has expanded its business through mergers and acquisitions of domestic consumer finance companies and credit card companies, and in 2012 it launched a Korean savings bank business. In FY03/14-03/15 it employed approximately JPY97.6bn raised in a rights offering to acquire a finance company and savings bank in Korea and a commercial bank in Indonesia. J Trust announced a medium-term management plan in FY03/15, and from FY03/16 targets profit growth by increasing assets through its Korean finance business and Southeast Asian finance businesses. In the Japanese finance business, the company concentrated on growth of the consumer finance, credit card, guarantee, and servicer (debt recovery) businesses through FY03/15. From FY03/16 onwards the company aimed to effectively exit the unsecured loans business, which has limited medium-term growth potential, and expand the real estate related guarantee business and the servicer business. The Korean finance business is comprised of the savings bank, capital and debt recovery businesses. J Trust launched its consumer finance business in Korea in 2009. In 2012 it launched the JT Chinae Savings Bank and from FY03/13-FY03/15 it grew loans balances in the savings bank business primarily through M&A. In the medium term the company aimed to grow earnings primarily by expanding the savings bank s lending book. The Southeast Asian finance business purchased Indonesia s Mutiara bank (currently J Trust Bank Indonesia) in November 2014. The company aimed to expand the lending book and widen margins by lowering average deposit interest rates. Further, it planned to leverage the group s network in Japan, Korea and Southeast Asia and expand lending overseas as well as to foreign companies. Trends and outlook FY03/15, operating revenue was JPY63.3bn (+2.2% YoY), operating loss was JPY5.2bn (operating profit of JPY13.7bn in FY03/14), recurring loss was JPY2.4bn (recurring profit of JPY13.4bn in FY03/14), and net income was JPY10.1bn (-9.0% YoY). The medium-term plan called for operating revenue of JPY14.2bn, OP of JPY22bn and ROE of 10% in FY03/18. In FY03/15 the company grew the business primarily through short-term M&A activity targeting receivables purchases, but from FY03/16 onwards, the company said that the primary source of earnings would be the banking business in Asia, which could expect sustainable growth. Strengths and weaknesses Shared Research views J Trust s strengths as its debt recovery expertise, acquisition capability, and CEO Fujisawa s business management skills. Its weaknesses are that it is easily affected by regulation and that its sources of stable income are limited. (See Strengths and weaknesses section for further details.) 04/89

J Trust > Recent updates Recent updates Highlights On April 7, 2016, Shared Research updated this report following interviews with J Trust Co., Ltd.. On February 12, 2016, the company announced results for Q3 FY03/16; see the results section for details. On January 14, 2016, the company announced that it would establish a new company that would be jointly funded by Group Lease PCL. The company and its subsidiary, JTRUST ASIA PTE. LTD. (JTA), have decided to invest in a new company established in Indonesia by Group Lease PCL (GL, first section Stock Exchange of Thailand). Reason for establishing the new company The company is seeking to strengthen its relationship with Group Lease PCL as it prepares to establish a sales financing business in Indonesia. By cooperating with Group Lease PCL as a strategic partner, it intends to expand its corporate finance and lease businesses in Indonesia and other ASEAN markets. As part of this effort, it has decided to establish a multi-finance company with Group Lease PCL (PT Group Lease Finance Indonesia, GLFI), with the aim of developing an installment payment business targeting Indonesian consumers. JTrust decided to establish the company using joint funding because by financing GLFI through its consolidated subsidiary PT Bank JTrust Indonesia Tbk. (JTrust Indonesia), it will also be able to develop JTrust Indonesia s high-grade lending balance, thus contributing to profits. After its establishment, GLFI is expected to become an equity-method affiliate. GLFI is not expected to impact JTrust s FY03/16 earnings. Overview of the new company Name: PT Group Lease Finance Indonesia Business: Investment finance, working capital finance, multipurpose finance, other finance businesses approved by the relevant financial authorities Capital: IDR100bn (about JPY854mn; based on a rate of IDR/JPY 0.00854) Major shareholders (equity interest): Group Lease Holdings Pte. Ltd. (65.0%), JTrust Asia (20.0%), PT Wijaya Infrastruktur Indonesia (15.0%) For corporate releases and developments more than three months old, see the News and topics section. 05/89

J Trust > Trends and outlook Quarterly trends and results Trends and outlook Quarterly performance (JPYmn) Q1 Q1-Q2 Q1-Q3 Q1-Q4 Q1 Q1-Q2 Q1-Q3 Q1-Q4 % of FY FY Est. Operating Revenue 15,928 31,979 48,120 63,281 19,490 37,778 57,947 70.8% 81,900 YoY 9.5% 10.9% 9.3% 2.2% 22.4% 18.1% 20.4% 29.4% Gross Operating Profit 8,188 17,536 26,597 33,996 9,571 18,329 28,948 YoY -3.0% 6.8% 7.9% -4.5% 16.9% 4.5% 8.8% GPM 51.4% 54.8% 55.3% 53.7% 49.1% 48.5% 50.0% SG&A Expenses 8,546 20,169 29,918 39,214 11,523 20,664 31,057 YoY 37.5% 42.2% 61.1% 79.5% 34.8% 2.5% 3.8% SG&A / Operating Revenue 53.7% 63.1% 62.2% 62.0% 59.1% 54.7% 53.6% Operating Profit or loss -358-2,632-3,321-5,217-1,951-2,335-2,108-7,500 YoY - - - - - - - - OPM - - - - - - - 9.2% Recurring Profit or loss -294-2,459-316 -2,385-1,585-2,200-1,525 YoY - - - - - - - RPM - - - - - - - Net Income or loss -395-3,754-1,142 10,143-2,789-2,320-1,045-4,700 YoY - - - -9.0% - - - - NPM - - - 16.0% - - - 5.7% Quarterly performance FY03/15 FY03/15 FY03/16 FY03/16 (JPYmn) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Operating Revenue 15,928 16,051 16,141 15,161 19,490 18,288 20,169 YoY 9.5% 12.2% 6.4% -15.3% 22.4% 13.9% 25.0% Gross Operating Profit 8,188 9,348 9,061 7,399 9,571 8,758 10,619 YoY -3.0% 17.2% 10.0% -32.3% 16.9% -6.3% 17.2% GPM 51.4% 58.2% 56.1% 48.8% 49.1% 47.9% 52.7% SG&A Expenses 8,546 11,623 9,749 9,296 11,523 9,141 10,393 YoY 37.5% 45.8% 122.1% 184.7% 34.8% -21.4% 6.6% SG&A / Operating Revenue 53.7% 72.4% 60.4% 61.3% 59.1% 50.0% 51.5% Operating Profit or loss -358-2,274-689 -1,896-1,951-384 227 YoY - - - - - - - OPM - - - - - - 1.1% Recurring Profit or loss -294-2,165 2,143-2,069-1,585-615 675 YoY - - -45.7% - - - -68.5% RPM - - 13.3% - - - 3.3% Net Income or loss -395-3,359 2,612 11,285-2,789 469 1,275 YoY - - 81.3% 31.8% - - -51.2% NPM - - 16.2% 74.4% - - - Source: Shared Research based on company data From FY03/16 on, net income or loss refers to net income or loss attributable to parent company shareholders. FY03/16 06/89

J Trust > Trends and outlook Operating revenue FY03/15 FY03/16 (JPYmn) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Operating revenue 15,928 16,051 16,140 15,161 19,490 18,287 20,169 Interest earned on loans/received commission 3,092 983 596 448 1,050 934 1,202 Discount revenue 48 46 47 44 43 32 24 Interest on loans 3,043 937 549 404 1,007 902 1,178 Collection from purchased receivable 710 701 1,128 898 766 877 1,076 Installment payment paying for commission 1,622 1,548 1,491 38 42 48 68 Guarantee commission 650 665 677 450 454 454 470 Other financial revenue 309 273 252 215 171 147 110 Gain on bad debts recovered 1,174 1,169 1,275 1,190 1,392 763 1,190 Sales (real estate business) 1,846 1,626 1,287 1,061 1,244 1,622 1,424 Sales (amusement business) 3,631 4,054 3,826 3,561 3,904 4,458 4,127 Operating revenue (banking business) 2,194 4,084 3,450 4,647 8,992 7,921 7,904 Korea 2,194 4,084 3,450 4,647 5,764 5,009 5,007 Indonesia 3,227 2,913 2,898 Source: Shared Research based on company data Q3 FY03/16 results Operating revenue rose 20.4% YoY to JPY57.9bn. The domestic financial business saw lower revenues, but consolidated operating revenue was up due to higher revenues especially in financial businesses in South Korea and Southeast Asia, and the investment business. J Trust reported a Q3 operating loss of JPY2.1bn (versus a loss of JPY3.3bn in the same period last year). The consolidated operating loss was largely due to an operating loss in the financial business in Southeast Asia, with contributions from the domestic and South Korean financial businesses, and the investment business. The company reported a recurring loss of JPY1.5bn (versus a loss of JPY316mn in the same period last year), and a net loss attributable to parent company shareholders of JPY1.0bn (versus a loss of JPY1.1bn in the same period last year). Under IFRS (unaudited), the company reported operating revenue of JPY57.3bn and an operating loss of JPY640mn. The difference between the operating loss under Japanese accounting standards versus IFRS came down to factors such as differences in the handling of reporting timing for the SE Asian financial business and JPY1.9bn amortization of goodwill. Measured against full-year company forecasts for FY03/16 (IFRS), the company achieved 70.0% of forecast operating revenue as of the end of Q3, while booking an operating loss of JPY640mn, which leaves operating profit JPY8.1bn short of the forecast JPY7.5bn operating profit forecast for full-year FY03/16. According to the company, the forecast for full-year FY03/16 can still be achieved as it expects to book a profit on the sale of bad debts in the South Korean financial business, benefits from a reduction in advertising costs, structural changes in the South East Asian financial business, and a reduction of loan loss reserves in Q4 (January-March, 2016), as outlined in more detail below. Segment results are detailed below. As the company changed its segmentation in Q1 and Q2 FY03/16, the following YoY figures have been adjusted to assure like-for-like comparisons. Domestic financial business Operating revenues declined 45.7% YoY to JPY8.5bn and segment profit rose 101.3% to JPY2.9bn. Operating revenues fell due to a decrease in installment commissions in the wake of the KC Card brand transfer in January 2015. Segment profit rose owing to the transfer of the KC Card brand and a fall in provisions for losses on interest 07/89

J Trust > Trends and outlook repayments resulting from the transfer of the unsecured loan business, as well as reduced costs such as through restructuring at Nihon Hoshou. The company s main subsidiaries in this segment are Nihon Hoshou and Partir Servicer. As of the end of Q3 FY03/16, operating revenues at Nihon Hoshou were JPY7.1bn (-4.2% YoY; JPY312mn lower than Q3 FY03/15) with an operating profit of JPY2.7bn (+28.1% YoY; JPY586mn higher than Q3 FY03/15), and operating revenues at Partir Servicer were JPY1.2bn (+15.5% YoY; JPY159mn higher than Q3 FY03/15) with an operating profit of JPY209mn (+68.5% YoY; JPY85mn higher than Q3 FY03/15). Under IFRS (unaudited), operating revenues for this segment were JPY7.9bn (versus full-year company forecast operating revenue of JPY11.1bn) with operating profit of JPY3.4bn (versus full-year company forecast operating profit of JPY3.2bn). Measured against full-year company forecasts for FY03/16 (IFRS), in Q3 FY03/16 (IFRS), sales reached 71.4% of forecast and operating profit 105.1% of forecast. Operating profit in this segment has already beaten full-year company forecasts. According to the company, further profits are expected in Q4. For this segment, J Trust plans to increase profits by focusing on its credit guarantee services and receivables collections businesses, according to the company's medium-term business plan. Q3 conditions of these two businesses are summarized below. Guarantee Business As of the end of Q3 FY03/16, operating revenues in the Guarantee segment under IFRS (unaudited) were JPY5.2bn (versus full-year company forecast operating revenue of JPY6.7bn) with an operating profit of JPY1.7bn (versus full-year forecast JPY2.0bn). Measured against full-year company forecasts for FY03/16 (IFRS), in Q3 FY03/16 (IFRS), sales reached 77.7% of forecast and operating profit 84.2% of forecast. The results for this segment include figures for the collection of off-balance sheet receivables in relation to purchased receivables assumed from Takefuji (defunct), but which the company has been making progress recovering, and this has helped the company reach full-year targets quickly. As of the end of Q3 FY03/16, the balance of loans on which the company had extended guarantees, which forms the basis of its revenue in this business, was JPY45.3bn (-0.9% YoY). This included unsecured loan guarantees of JPY15.2bn (-34.5%) and secured loan guarantees JPY30.1bn (+33.9%). The balance of loans guaranteed dropped YoY after the transfer of KC Card s credit guarantee business, but secured loan guarantees saw increased guaranteeing in apartment loans. Overall, the company is making progress towards its target of JPY48.7bn in unsecured loan guarantees by the end of FY03/16. The main source of growth in the company s loans guaranteed balance is rental housing loans guarantees, which reached JPY6.4bn (JPY500mn in Q3 FY03/15, with JPY12.3bn forecast as at the end of FY03/16). The total value of rental housing loans approved has risen steadily from JPY3.6bn in Q1 (Apr-Jun) and JPY13.4bn in Q2 (Jul-Sep) to reach JPY20.8bn in Q3 (Oct-Dec). According to the company, for rental housing loans, building cost are generally split into payments made at the start of construction, at a mid-way point, and on delivery of the finished home, with payments increasing towards the end of the construction period. This means that the balance of rental housing loans guaranteed should increase towards the targeted JPY12.3bn at the end of FY03/16. Receivables collections business For Q3 FY03/16, the receivables collections segment saw operating revenue of JPY3.1bn (versus full-year company 08/89

J Trust > Trends and outlook forecast operating revenue of JPY3.8bn), and operating profit of JPY1.1bn (versus a full-year forecast of JPY1.2bn) cumulatively on an IFRS (unaudited) basis. Measured against full-year company forecasts for FY03/16 (IFRS), in Q3 FY03/16, sales reached 81.7% of forecast and operating profit 94.8% of forecast. As of the end of Q3 FY03/16, the balance of purchased receivables was JPY3.3bn, up 5.0% YoY, and the balance of receivables claimed was JPY465.1bn. In Q2, Partir Servicer s collectable receivables included purchased large-scale bad debt receivables, and the balance of receivables claimed increased further in Q3. As of the end of Q3, the balance of receivables claimed had surpassed the targeted end-of-year FY03/16 balance of JPY384.1bn. To expand this segment, the company has worked to strengthen its corporate receivables collections business and expand business rehabilitation services. This is in view of its collections capability, and through being an industry survivor through acquiring dwindling domestic servicers. Financial business in South Korea Operating revenues rose 45.5% YoY to JPY20.0bn. The segment booked an operating profit of JPY55mn (versus a loss of JPY4.2bn in the same period last year). J Trust s banking business booked a rise in operating revenues on the strength of an increase in new loan receivables at JT Chinae Savings Bank and the acquisition of JT Savings Bank in the previous fiscal year. In addition, it acquired JT Capital in the previous year, which boosted revenues from interest on loans. These factors led to the company s revenue growth. Profits also grew thanks to increased operating revenues and to a decline in the losses on the sale of loans and in provisions for doubtful accounts, both of which had risen in the previous year as the company dealt with bad loans with JT Chinae Savings Bank. As of the end of Q3 FY03/16, operating revenues in the South Korea financial business segment (on a Japanese accounting standards basis, before elimination of intra-company transactions) were JPY6.1bn, but segment profit was JPY55mn due to the elimination of intra-company transactions. The elimination of intra-company transactions was primarily related to the acquisition of JT Capital and JT Savings Bank in the previous year, which resulted in the booking of a JPY10.4bn gain on negative goodwill. This was broken down into approximately JPY5.0bn in re-valuation of future profit on collections from defaulted receivables that have already been written off the balance sheet, based on the company s historical collection performance, and approximately JPY5.4bn in revaluation of future profit on some of the performing receivables, etc. that were acquired. As of the end of Q3 FY03/16, the company booked a JPY3.8bn profit on the sale of JT Capital and JT Savings Bank s defaulted receivables that have already been written off the balance sheet. However, this profit had already been recognized as a gain on negative goodwill in the previous year on a consolidated basis, so it is subject to the accounting process of elimination of intra-company transactions during Q3. The approximately JPY5.4bn that emerged (including from performing loan receivables) that were acquired is also subject to approximately JPY1.7bn in elimination of intra-company transactions during Q3 due to collections of such receivables. As of the end of Q3 FY03/16, operating revenues for the segment under IFRS (unaudited) were JPY20.2bn (versus full-year company forecast operating revenue of JPY30.0bn) with an operating profit of JPY311mn (versus full-year forecast JPY2.5bn). In Q2, the difference between Japanese accounting standards versus IFRS was primarily due to differences in the reporting of provisions for doubtful debts. According to the company, the discrepancy between the accounting standards had been reduced as of December 31, 2015, after changes to the company s accounting logic. Measured against full-year company forecasts for FY03/16 (IFRS), operating revenue in the cumulative Q3 period reached 67.2% of 09/89

J Trust > Trends and outlook forecast, but the company recorded an operating loss of JPY311mn, which was JPY2.8bn short of the forecast JPY2.5bn operating profit. Nevertheless, the company still expects full-year forecasts to be met as a result of Q4 (Jan-Mar 2016) profit factors, such as profit from the sale of bad debt receivables, benefits from a reduction in advertising costs, improved sales and marketing, and profits on the collection of purchased receivables. In this segment, in its medium-term management plan, the company singled out its savings bank and capital business and the receivables collections business as the main businesses in which it expects to realize profit growth. The following is a summary of conditions of the savings bank and capital business and the receivables collections business. Savings bank and capital business As of the end of the Q3 FY03/16, the company reported operating revenues of JPY14.0bn (+49.0% YoY, an increase of JPY4.6bn) and operating profit of JPY2.1bn (versus an operating loss of JPY4.0bn in Q3 FY03/15) at JT Chinae Bank, operating revenues of JPY2.6bn and operating profit of JPY344mn at JT Savings Bank, and operating revenues of JPY8.1bn and operating profit of JPY2.8bn at JT Capital. For the balance of loans, which forms the basis of revenue in this business, the banking business booked loans of JPY150.1bn (+90.4% YoY). Including long-term operating receivables, the total balance of loans came to JPY47.3bn (+402.9% YoY). Loans by the group's banking business in South Korea increased sharply because JT Chinae Bank took over the loan business of an affiliated financial company in August 2014, JT Savings Bank was acquired in January 2015, and both volume and value of new loans increased. Although transfer of the loan business to JT Chinae Savings Bank initially reduced the balance of operating loans, this was offset by the acquisition of JT Capital in March 2015. The increase in the new loan balance, which was around KRW2.0bn per month as of the end of January 2013 (when the company first began the savings banking business in South Korea), had risen to around KRW140.9bn per month as of December 2015. This was attributable to an expanded sales area resulting from the acquisition of JT Chinae Bank, consolidation under the JT brand and use of TV commercials and other advertising to improve brand awareness. JT Chinae Savings Bank received the AJU Business Daily Finance Stock Award in December from the AJU Business Daily Newspaper, and was also awarded the highest customer satisfaction rating in the savings bank division at the 14th (KOREA) FIRST BRAND AWARDS sponsored by (Korea) Consumers Council, chosen from among 79 savings bank divisions in a consumer survey of 852,000 South Korean residents. Having survived through the difficulties faced by the consumer finance business industry in Japan over a decade or so from around 2005, the company has made some well-judged investments in South Korea and won the support of Korean consumers. The new loan balance is increasing amid stricter credit controls, and as of December 2015, the ratio of loans delayed 30 days or more had fallen to 6.6% (8.74% in April 2014). Receivables collections business As of the end of Q3 FY03/16, TA Asset Management LLC reported operating revenues of JPY1.3bn and an operating profit of JPY1.0bn. As of the end of Q3 FY03/16, the balance of purchased receivables at this business was JPY3.7bn (versus zero at this time last year), and the balance of claims was KRW243.9bn (approximately JPY25.2bn, based on an exchange rate of 10/89

J Trust > Trends and outlook KRW/JPY0.1033). No new receivables purchases were made, and progress was made with collections, including the sale of receivables. The company is leveraging its collections capability and compliance with local laws and regulations. Financial business in Southeast Asia This segment reported operating revenues of JPY9.0bn (versus zero at this time last year) and an operating loss of JPY5.8bn (versus zero at this time last year). J Trust booked operating loss despite increased operating revenues in the banking business thanks to acquisition of Bank J Trust Indonesia in the previous fiscal year. In an effort to restore the business to financial health, the company took measures to dispose of bad debt receivables. Unable to focus on expanding lending, the business booked monthly losses of JPY200-300mn. The company also booked additional provisions for doubtful accounts and losses on the sale of bad debts ahead of schedule, resulting in an operating loss. As of the end of Q3 FY03/16, the segment recorded operating revenue of JPY8.8bn and an operating loss of JPY4.1bn under IFRS (unaudited). The difference between this and Japanese accounting standards for Bank JTrust Indonesia came down to the fact that under Japanese accounting standards, if the difference in reporting year for a subsidiary ends within three months of the parent, then it can be consolidated as-is, meaning that the cumulative Q3 FY03/16 reporting period includes January through September 2015 in consolidated reports. In contrast, under IFRS, no discrepancy is recognized, and therefore results for April to December 2015 are consolidated, and influenced by differences in reversals on the amortization of goodwill for Bank JTrust Indonesia. Although the segment recorded an operating loss of JPY4.1bn under IFRS, the company forecasts a full-year operating loss of JPY1.5bn for FY03/16, for the reasons set out below. According to the company, it will be difficult to achieve the JPY1.5bn operating profit (IFRS) for FY03/16 targeted in the medium-term business plan, but for SE Asia as a whole, including investment business, the company is making progress towards the medium-term business plan target, with Q3 operating profit of JPY2.5bn in the investment business. Despite monthly losses from Oct-Dec 2015, the company expects to regularly make the break-even point by March 2016 as a result of an increased balance of loans and a reduction in interest expenses and SG&A. Bank JTrust Indonesia transferred bad debts to PT JTrust Investments Indonesia (hereinafter JTII ) in October 2015, which resulted in a lower NPL ratio for Bank JTrust Indonesia. The company expects to reduce loan loss reserves at the end of FY03/16 as a result of improvement in the loan loss reserve ratio under IFRS. According to the company, loan loss reserve estimates are reviewed each quarter based on the previous three years of actual loan losses under Japanese accounting standards, but under IFRS, they are reviewed each year based on the previous year s loan losses. At Bank JTrust Indonesia, the delinquency rate dropped from 7.5% in September 2015 to 2.6% in December 2015, as a result of the transfer of bad debts to JTII in October 2015. In October 2015, Bank JTrust Indonesia transferred JPY4.3bn in nonperforming loans to JTII. JTII expects to recover around JPY6.5bn on these bad debts by around December 2017, achieving a gross profit of approximately JPY2.2bn in the process. It expects collections of these bad debts to contribute to revenue from the Jan-Mar 2016 quarter. 11/89

J Trust > Trends and outlook Primary economic indicators for Bank J Trust Indonesia The primary indicators of the performance of Bank JTrust Indonesia are operating assets balance, average lending interest rate, the average deposit interest rate, and net interest income, which are summarized below: The balance of operating assets was IDR9.4tn (approximately JPY82.6bn at an exchange rate of IDR/JPY0.0088; hereafter the same). In October 2015, Bank JTrust Indonesia transferred IDR2.4tn (approximately JPY22.0bn) in nonperforming loans to JTII, but the balance of operating assets trended higher in Oct-Dec 2015, to reach IDR1.6tn (approximately JPY14.1bn). The month of December 2015 saw the highest increase since the purchase of the bank, with a net increase of IDR669.7bn (approximately JPY5.9bn). On a quarterly basis, Apr-Jun 2015 recorded IDR8.4tn (approximately JPY73.7bn), Jul-Sep 2015 recorded IDR8.9tn (approximately JPY78.0bn), and Oct-Dec 2015 recorded IDR9.4tn (approximately JPY82.6bn). However, progress with the balance of operating assets was delayed compared to the JPY109.5bn targeted for FY03/16. As a result of the transfer of nonperforming loans to JTII, the bank s NPL ratio dropped to below 3.0%, and with additional capital injection, the bank s regulatory control status moved from specified to general. The average lending interest rate for Apr-Jun 2015 was 9.99%, which rose to 10.55% for Jul-Sep 2015, and 11.22% for Oct-Dec 2015. The average deposit interest rate for Apr-Jun 2015 was 8.43%, then 7.69% for Jul-Sep 2015, and 8.04% for Oct-Dec 2015, remaining under the 8.20% target for FY03/16. Reductions were achieved through negotiation with large term-deposit holders. An increase in low-interest deposits was achieved by focusing sales activity on improving the CASA ratio (ratio of current account and ordinary account deposits as a percentage of overall deposits). The increase from Oct-Dec 2015 over Jul-Sep 2015 was due to the deposit interest rate being raised to provide a competitive rate for deposits at the end of the year. Net interest income was IDR20bn (JPY200mn) for Apr-Jun 2015, IDR41.2bn (JPY400mn) for Jul-Sep 2015, and IDR68.3bn (JPY600mn) for Oct-Dec 2015. General Entertainment Operating revenues rose 3.7% YoY to JPY12.5bn, while operating loss was JPY118mn (operating profit of JPY421mn in this time last year). Real Estate At the Real Estate segment, operating revenues declined 9.8% YoY to JPY4.3bn and operating profit declined 11.6% to JPY366mn. Investment business Operating revenues were JPY2.7mn (versus JPY8mn at this time last year), and the segment profit jumped to JPY2.5bn (up from a loss of JPY80mn this time last year). J TRUST ASIA saw growth in revenues and profits due to the booking of valuation gains from convertible bonds, and income when converting the bonds of GROUP Lease PCL. 12/89

J Trust > Trends and outlook Other Operating revenues declined 42.7% YoY to JPY1.5bn, and the segment loss of JPY140mn (versus a segment profit of JPY141mn at this time last year). For details on previous results, see the Historical performance section. 13/89

J Trust > Trends and outlook Full-year company forecasts FY03/16 Forecasts FY03/15 FY03/16 (JPYmn) 1H Act. 2H Act. FY Act. FY Est. Operating revenue 31,979 31,302 63,281 81,900 Operating expenses 14,442 14,843 29,285 Gross operating profit 17,536 16,460 33,996 GPM 54.8% 52.6% 53.7% SG&A expenses 20,169 19,045 39,214 SG&A / Operating revenue 63.1% 60.8% 62.0% Operating profit or loss -2,632-2,585-5,217 7,500 OPM -8.2% -8.3% -8.2% 9.2% Recurring profit or loss -2,459 74-2,385 RPM -7.7% 0.2% -3.8% Net income or loss -3,754 13,897 10,143 4,700 Net margin -11.7% 44.4% 16.0% 5.7% Source: Shared Research based on company data Figures may differ from company materials due to differences in rounding methods Figures for FY03/15 are based on Japanese accounting standards, while company forecasts for FY03/16 are based on IFRS Company forecasts for FY03/16 Operating revenue: Operating profit: Net income: JPY81.9bn JPY7.5bn JPY4.7bn From FY03/16, J Trust adopted new segment classifications. The old business segments were Finance, Amusement, Real Estate, and International. From FY03/16 onwards they are Japanese finance, Korean finance, Southeast Asian finance, amusement, real estate and non-finance. From 1H FY03/16, Investment Business, which had been under the Non-finance segment was added as its own segment, reflecting its growing quantitative importance. Under the newly restructured segments, the company is aiming to achieve its full-year targets by covering a shortfall in the SE Asia Finance segment with the strength of its Domestic Finance and Investment Business segments. 14/89

J Trust > Trends and outlook Medium-term outlook Between 2H FY03/14 and FY03/15, the company used JPY97.6bn of funds raised in the July 2013 rights offering (non-commitment, gratis allotment of listed share warrants) to acquire Chinae Savings Bank, South Korean finance companies, and an Indonesian commercial bank. J Trust plans to transform its business portfolio through a series of acquisitions as flagged in the medium-term plan it released in May 2015. Under this the company targeted operating revenue of JPY142.1bn in FY03/18 (+JPY 78.8bn [+125%] versus FY03/15); operating profit of JPY21.7bn (an increase of JPY26.9bn) and ROE of 10.0%. FY03/15 FY03/16 FY03/17 FY03/18 FY03/20 (JPYmn) Act. Plan Plan Plan Target Operating revenue 63,281 81,900 107,500 142,100 200,000 YoY 2.2% - 31.26% 32.19% - Operating Profit -5,217 7,500 15,100 21,700 35,000 YoY - - 101.33% 43.71% - ROE 5.6% 2.5% 7.0% 10.0% - Source: Shared Research based on company data * IFRS from FY03/16 Through FY03/15, the company expanded its business through short-term M&A activity primarily in purchasing debts. From FY03/16 onwards, the company said the bulk of its earnings contribution would be from the banking business in Asia, where sustainable growth is possible. Under the company s medium-term business plan, the Korean finance business and the Southeast Asian finance business are expected to make particularly large contributions to earnings. FY03/15 FY03/16 FY03/17 FY03/18 Annual average (JPYmn) Act. Plan Plan Plan growth rate Domestic financial services Operating revenue 12,000 11,100 11,100 11,500-1.4% Operating profit 2,500 3,200 4,000 4,400 20.7% Operating assets 36,500 48,700 75,600 100,300 40.1% South Korean financial services Operating revenue 18,700 30,000 40,800 63,200 50.1% Operating profit -5,200 2,500 5,500 8,300 82.2% Operating assets 190,700 250,000 320,000 400,000 28.0% South East Asia financial services Operating revenue 12,000 22,900 30,300 58.9% Operating profit 1,500 3,200 5,300 88.0% Operating assets 76,000 109,500 166,300 215,200 41.5% Investment Operating revenue 500 2,200 3,000 144.9% Operating profit -200 1,500 2,000 - Other Operating revenue 23,300 25,000 29,000 33,000 12.3% Operating profit 1,400 1,400 1,900 2,300 18.0% Source: Shared Research based on company data *Operating assets for Domestic financial services represents credit guarantees **Operating assets excludes collections from purchased receivables from debt recovery businesses ***Average annual growth rate is from FY3/16 FY03/18 * IFRS from FY03/16 Further, in addition to core business growth, in the medium-term the company said it would target investment deals in growth markets with IRRs of at least 15%, investing JPY50 100bn over three years. The company has also positioned maximizing shareholder value as a critical management priority, and in December 2015, 15/89

J Trust > Trends and outlook the company conducted a share buyback and extinguished the treasury stock acquired (6,250,000 shares amounting to 5.27% of shares outstanding) in order to return profits to shareholders. Domestic financial services In domestic financial services the company targeted operating revenue of JPY11.5bn for FY03/18 (-JPY500mn [-4%] versus FY03/15) and operating profit of JPY4.4bn (an increase of JPY1.9bn or +76%). The company aimed to effectively exit the consumer finance (unsecured loans) business, which has limited medium-term growth potential, and expand the real estate related guaranteed business and the servicer business. Domestic financial services revenue plan FY03/15 FY03/16 FY03/17 FY03/18 annual average (JPYmn) Act. Plan Plan Plan growth rate Operating revenue 12,000 11,100 11,100 11,500-1.4% Guarantee business 7,900 6,700 6,300 6,200-7.8% Debt collection 3,900 3,800 4,100 4,700 6.4% Operating Profit 2,500 3,200 4,000 4,400 20.7% Guarantee business 1,000 2,000 2,400 2,400 33.9% Debt collection 1,500 1,200 1,600 2,000 10.1% Outstanding guarantees 36,500 48,700 75,600 100,300 40.1% Unsecured loans outstanding guarantees 500 12,300 36,200 60,100 393.5% Exc. unsecured loans outstanding guarantees 36,000 36,400 39,400 40,200 3.7% Claim receivable balance 347,800 384,100 440,900 500,800 12.9% Source: Shared Research based on company data *Avg annual growth rate is from FY3/16 FY03/18 * IFRS from FY03/16 Guarantee business In this business the company targeted operating revenue of JPY6.2bn in FY03/18 (-JPY1.7bn [-22%] versus FY03/15) and OP of JPY2.4bn (+JPY1.4bn or +140%). The company s medium-term strategies are: to strengthen real estate related guarantees; expand alliances with regional banks; and an improved cost structure, thereby strengthening earnings power. The company planned to leverage the expertise it acquired in the non-bank business in real estate related guarantees. It planned to expand its guarantees outstanding by dealing with real estate backed loan deals targeting customers that do not meet lending standards of typical financial institutions, e.g. guarantees for real estate backed loans such as apartment loans for landowners. The company s plans called for guarantee balances to grow from JPY36.5bn (of which apartment loans comprised JPY500mn) in FY03/15 to JPY 100.3bn (JPY 60.1bn in apartment loans) in FY03/18. In terms of bank lending rates, unsecured loans are provided at around 15.0%, and secured loans at around 8.0%. Interest income is split between the company and its tie-up partners, with one third going to partners and two thirds to the company in the case of unsecured loans, and around 50:50 for secured loans. In comparison, apartment loans are lent at around 2.0% interest, with the company taking about half of that. Loans that become uncollectible are expenses of the company. The company says that it is able to minimize lending risk by leveraging the real estate valuation skills built up by the company and President Fujisawa since the company was established. In May 2015, Nihon Hoshou implemented a voluntary redundancy program to optimize its human resources make-up and reduce costs. 320 employees applied for voluntary redundancy, which the company said would reduce annual personnel expenses by JPY1.5bn. 16/89

J Trust > Trends and outlook Domestic servicer business In this business the company targeted operating revenue of JPY4.7bn in FY03/18 (+800mn [+21%] versus FY03/15) and OP of JPY2.0bn (+JPY500mn or +33%). As the loan market in which the servicer business operates continues to shrink in Japan, the company aimed to grow profits by leveraging its debt recovery capabilities and debt recovery analysis. The number of operators in Japan s debt collection market in which the servicer business operates is shrinking. According to a study by the Japanese Ministry of Justice, the debt collection market shrank from JPY26.7tn in December 2009 to JPY18.5tn in December 2014, an average annual decline of 7.1%. Over the same period, the number of debt collection agencies declined from 102 companies to 90, an average annual decline of 2.5%. J Trust s forte is its ability to collect personal debts. As of the end of March 2015, the company achieved an investment return with an IRR of over 40%, based on accumulated debt recoveries versus debt purchase prices. Its recovery analysis gives the company a competitive advantage when bidding on debt purchases. In its medium-term plan, as the number of servicers shrinks in the domestic market, the company planned to benefit as one of the surviving players through purchases of other companies; bolster its corporate debt recovery business; expand into the corporate turnaround business; and expand its receivables balance through outsourcing from financial institutions and thus grow revenues. The company planned to grow its receivables balance from JPY347.8bn in FY03/15 to JPY500.8bn in FY03/18. Korean Financial Service In this business the company targeted operating revenue of JPY63.2bn in FY03/18 (+44.5bn (+238%) versus FY03/15) and operating profit of JPY8.3bn (+JPY13.5bn). The company planned to grow the savings bank, capital, and debt recovery businesses. South Korean financial services revenue p FY03/15 FY03/16 FY03/17 FY03/18 annual average (JPYmn) Act. Plan Plan Plan growth rate Operating revenue 18,700 30,000 40,800 63,200 50.1% Saving bank/capital - 28,300 38,000 59,000 44.4% Debt collection - 1,700 2,800 4,200 57.2% Operating Profit -5,200 2,500 5,500 8,300 82.2% Saving bank/capital - 1,900 4,200 6,800 89.2% Debt collection - 600 1,300 1,500 58.1% Operating assets of Saving bank/capital 190,700 250,000 320,000 400,000 28.0% Unsecured loans outstanding 90,900 112,500 144,000 180,000 25.6% Exc. unsecured loans outstanding 99,800 137,500 176,000 220,000 30.1% Receivables balance for debt collection 29,200 49,200 81,100 112,300 56.7% Source: Shared Research based on company data *Avg annual growth rate is from FY3/16 FY03/18 * IFRS from FY03/16 17/89

J Trust > Trends and outlook Present 3 years later Consumer loan portfolio balance 0.9 KRWtn 1.8 KRWtn Credit rating (average rating) 6.9 5.8 Acquisition costs per customer 6 KRWmn 3 KRWmn Ratio of loans to major corporations, secured 50% 55% loans, and government guaranteed loans 0.9 KRWtn 2.2 KRWtn Korean companies operating in Indonesia 830 companies Amount paid for receivables 1 KRWtn for 3 years Source: Shared Research based on company data Savings bank and capital businesses In these businesses the company targeted operating revenue of JPY59.0bn and OP of JPY6.8bn in FY03/18. Industry conditions are favorable as the savings bank industry is expected to increase its share of lending following changes to the specialty finance industry law. The company planned to grow its loan book as a result of expanding its operating area, synergies with J Trust Bank Indonesia and the purchase of companies and debts through M&A. The company planned to increase its loan balances in this business from JPY190.7bn in FY03/15 to JPY400bn in FY03/18. According to the company, in Korea the capital industry accounts for 3.6% of lending, the savings bank industry should be able to increase its loan balances by taking share from the capital industry. The background to this is July 2014 changes to the specialty finance industry law. Under the revised law, capital companies will have to restrict personal loans to 20% or less of their total assets (10% or less for companies with total assets of KRW2tn or more). The necessity to lower their lending amounts means they will be unable to avoid shrinking their consumer loan books. J Trust planned to grow its loan book in consumer loans, loans to major corporations, secured loans, and government guaranteed loans. The company planned to attract new customers with sales promotions, exploit synergies with the Indonesian business and acquire receivables by purchasing companies. In January 2013, the company made JT Savings Bank a subsidiary, expanding its coverage of the Korean population in conjunction with Chinae Savings Bank from 50% to 70%. Medium-term plan calls for enhanced sales promotion activities in its expanded operating area. Further, according to the company the capital company has strong recognition among the second tier financial institutions and attractive customers, whose credit ratings range from grade 1 through grade 4. The company planned to use JT Capital s customer drawing power and attract them as new customers to Chinae Savings Bank. The company planned to exploit synergies with J Trust Bank Indonesia to lend money to Korean companies which have operations in Indonesia. The company aimed to buy KRW1tn worth of receivables (personal loans from capital companies) over three years. In FY03/15 Chinae Savings Bank booked one-off expenses amounting to JPY1.3bn in bad debts and additional doubtful debt provisions of JPY4.2bn. This employed conservative provisioning ratios for one-off provisions for doubtful debts, receivables in arrears, and personal rehabilitation claims accompanying the transfer of assets from Standard Chartered Capital (Korea) Co., Ltd. to Chinae Savings Bank. These expenses related to provisions for bad doubtful debts were not expected to continue after FY03/15. Also, the company planned to target consumers with credit ratings from grade 1 through grade 5, thus improving the 18/89

J Trust > Trends and outlook average credit rating and boosting margins by reducing default rates. Korean debt recovery business In this business the company targeted operating revenue of JPY4.2bn and operating profit of JPY1.5bn in FY03/18. The company aimed to grow profits by expanding TA Asset Management LLC s receivables balance. The company aimed for the receivables balance to grow from JPY29.2bn in FY03/15 to JPY112.3bn in FY03/18. According to the company, competition is limited in Korea s debt collection industry and few of its competitors have significant funding resources. The company says that TA Asset Management s strength is that it has fused expertise the company has cultivated in the servicer industry in Japan with Korean know-how, a nationwide branch network in Korea enabling in-person debt collection which gives it strong debt collection capabilities. Further, based on this debt collection capacity it is able to bid competitively for bad debts and thus has a high win ratio. In the medium-term plan, in addition to these strengths, the company has appointed a former member of the Financial Supervisory Service (deputy head) to be a full-time advisor. This focus on legal compliance enables it to bid on large disposals of bad debts from megabanks and others which would lead to increased receivable balances and thus expanding earnings. The company forecast that it would be able to maintain its collection rate (cumulative collection amount versus purchase price) in line with FY03/15 at over 250%. Southeast Asian finance business In this business the company targeted operating revenue of JPY30.3bn and operating profit of JPY5.3bn in FY03/18. The company aimed to expand the lending book and widen margins on lower average deposit interest rates for J Trust Bank Indonesia (the former PT Bank Mutiara Tbk) purchased in November 2014. It also planned to exploit the strength of being able to dealing foreign currency due to its having a foreign currency commercial banking license and expand fees and foreign-exchange revenues. Further, the company indicated that the former PT Bank Mutiara Tbk had roughly JPY500bn in total assets before it went bankrupt, but under the management of Lembaga Penjamin Simpanan (LPS, Indonesia Deposit Insurance Corporation, it judged that a large proportion of debts were unrecoverable and disposed of them so that total assets shrunk to JPY120bn. The company said that in FY03/16 it would be possible to book profits by recovering the bad debts. In October 2015, the company transferred the bad debts held by Bank J Trust Indonesia to the receivables collection company PT JTrust Investments Indonesia (hereinafter JTII ), and expects the collection of these bad debts to contribute to results from Jan-Mar 2016. South Korean financial services revenue plan FY03/15 FY03/16 FY03/17 FY03/18 annual average (JPYmn) Act. Plan Plan Plan growth rate Operating revenue - 12,000 22,900 30,300 58.9% Operating Profit - 1,500 3,200 5,300 88.0% Operating assets 76,000 109,500 166,300 215,200 41.5% Average lending rate 12.7% 12.9% 13.4% - Average deposit interest rate 8.2% 7.5% 7.0% - Net interest margin 4.5% 5.4% 6.4% - Source: Shared Research based on company data *Avg annual growth rate is from FY3/16 FY03/18 * IFRS from FY03/16 19/89