3rd quarter of fy2016 earnings presentation · (consolidated operating income after consolidation...

Copyright(C)2016 JTRUST Co.,Ltd. All Rights Reserved. 1

Earnings Presentation

3rd Quarter of FY2016

February 2016

J Trust Co., Ltd.

2

Table of Contents

1. Nine Months Performance in FY2016

2. Performance by Segments

3. Questions and Answers

3

Disclaimer

• The information published in this material, including forecasts, is recognition,

opinion, judgment or projection of the Company at the time of creation of this

material and the Company does not guarantee its achievement. As such, please

be aware that actual results may differ from the forecasts provided in this material

as a result of various factors.

• Please note that figures based on IFRS in this material are unaudited figures

prepared by the Company as a reference.

• The earnings presentation and this material are prepared to provide information to

facilitate greater understanding of the Company. It is not intended for use in

soliciting investments in the securities issued by the Company or its subsidiaries.

• There are three months difference between consolidated accounting period and

accounting period of Bank JTrust Indonesia. (1Q reflects figures of Bank JTrust

Indonesia from January till March, 2Q reflects figures of Bank JTrust Indonesia

from April till June and 3Q reflects figures of Bank JTrust Indonesia from July till

September.)

• This material is an English translation of the original Japanese document,

prepared solely for the convenience of and reference by overseas investors. If

there exist any discrepancies between the original Japanese language and

English translation, the Japanese language will always prevail. The issuer shall

not be liable for this translation or any loss or damage arising from this translation.

5

Key Point

Key Point

Significantly increased consolidated operating income under IFRS,

5.4 billion yen is recorded, compared to the previous quarter.

Key Point

FY2016 Apr - Dec 1Q

Apr - Jun

2Q

Jul - Sep

3Q

Oct - Dec Change

Operating revenue 573 187 183 203 +20

Operating income -6 -18 -21 33 +54

Consolidated income statement

△ 18 △ 21

33

△ 40

△ 20

0

20

40

Apr - Jun Jul - Sep Oct - Dec

(in 100 million yen)

-

-

- -

Under IFRS *unaudited

6

Key Point

Financial business in Southeast Asia improved drastically under IFRS

compared to the second quarter of FY2016.

Key Point

FY2016 Apr - Dec 1Q

Apr - Jun

2Q

Jul - Sep

3Q

Oct - Dec Change

Domestic financial

business 33 11 8 13 +5

Financial business in

South Korea -3 -8 0.7 5 +5


Southeast Asia -40 -5 -30 -5 +25

Investment business 27 - 8 18 +10

Non-financial business 5 1 4 -0.3 -4

Adjustments / Others -28 -17 -12 2 +13

Total -6 -18 -21 33 +54

Segment Income before consolidation adjustment


Under IFRS *unaudited

7

I. Domestic financial business

⇒ Increased both operating revenue and operating income in a constant

manner, resulting in exceeding the initial plan.

II. Financial business in South Korea

⇒ Continued preferred business and good performance.

Aim to achieve the full-year target under IFRS.

III. Financial business in Southeast Asia

⇒ Focused on reorganization of sales force to create a positive

turnaround.

IV. Non-financial business / Investment business

⇒ Benefited greatly from investment business of JTRUST ASIA PTE. LTD.,

resulting in offsetting the financial loss in Southeast Asia.

8

9

Nine Months Performance in FY2016

-15

-6

6

-20

-15

-10

-5

0

5

10


Ordinary income

10

Nine Months Performance in FY2016 / Key indicators in charts

-19

-3

2

-20

-15

-10

-5

0

5

10


Operating income

-27

4

12

-30

-25

-20

-15

-10

-5

0

5

10

15


Quarterly income (net)

Significant improvement in income items every quarter.

Key Point

(in 100 million yen) Quarter-basis consolidated income statement Under J-GAAP

11

Nine Months Performance in FY2016 / Key indicators

Significant improvement in income items every quarter.

Key Point

FY2016 Apr - Dec Apr - Jun Jul - Sep Oct - Dec Change


Operating income -21 -19 -3 2 +5

Ordinary income -15 -15 -6 6 +12

Quarterly income (loss)

attributable to owners of

parent

-10 -27 4 12 +8

Operating profit ratio -3.64% -10.01% -2.10% 1.13% +3.23%

ROE -0.63% -1.51% 0.27% 0.75% +0.48%

Quarter-basis consolidated income statement


Under J-GAAP

12

Performance by Segments


Domestic financial

business 82 26 27 29 +2


South Korea 199 74 59 65 +6


Southeast Asia* 90 32 29 29 ±0


Non-financial business 167 51 60 56 -4

Total after consolidation

adjustment 579 195 182 201 +19

Recorded steady operating revenue in each segment.

Achieved consolidated operating revenue of 57.9 billion yen.

Key Point

Operating revenue under J-GAAP (in 100 million yen)

*Regarding financial business in Southeast Asia, operating revenue for 9 months in FY2016 reflects figures from January till September 2015.

Performance by segments / OP revenue

13

Segment performance / OP income


Domestic financial

business 28 9 6 13 +7


South Korea 1 1 -1 1 +2


Southeast Asia* -57 -25 -9 -23 - 14


Non-financial business 2 1 2 -1 -3

Total after consolidation

adjustment -21 -19 -3 2 +5

Domestic financial business and Investment business contributed substantially.

Financial business in South Korea improved by 2 million yen from the previous

quarter (-1 million yen from July till September, 1 million yen from October till December).

Recorded *provision of allowance for doubtful accounts in Financial business in

Southeast Asia as a conservative accounting operation.

Key Point

Segment income under J-GAAP (Consolidated operating income after consolidation adjustments)

*Regarding financial business in Southeast Asia, operating income for 9 months FY2016 reflect figures from January till September 2015.


* Disclosed in the 1st half of FY2016

earnings presentation under IFRS

14

15

Performance by segments / IFRS vs. J-GAAP

IFRS and J-GAAP cause 3 months time lag in Southeast Asia. The 3rd quarter

of FY2016 includes the results from October till December under IFRS while

J-GAAP includes the results from July till September in consolidation.

Amortization of goodwill for JTrust Bank Indonesia is included under J-GAAP.

Key Point

FY2016 Apr - Dec Oct - Dec

IFRS J-GAAP Time lag IFRS J-GAAP Time lag

Domestic financial

business 33 28 +5 13 13 ±0


South Korea -3 1 -4 5 1 +4


Southeast Asia -40 -57 +17 -5 -23 +18

Investment business 27 25 +2 18 18 ±0

Non-financial business 5 2 +3 -0.3 0 ±0

Adjustments / Others -28 -20 -8 2 -6 +8

Total -6 -21 +15 33 2 +31


Segment income under J-GAAP (Consolidated operating income after consolidation adjustments)

16

Domestic financial business

Domestic financial business / Highlight

Posted good operating revenue and operating income, exceeded the target.

For dividends of 12.3 billion yen received from J TRUST Card Co., Ltd.,

effective utilization with a flexible manner as a group.

Key Point



Operating income 28 9 6 13 +7



Major subsidiaries’ operating income in domestic financial business

(Note) Non-consolidated basis (before consolidated adjustment) as per Japanese standards


Nihon Hoshou *1 26 8 5 12 +7

Partir Servicer 2 0.4 0.8 0.8 0

J Trust Card 2 0.9 0.7 1 +0.3

*1: 1 billion yen out of 2.6 billion yen of Nihon Hoshou’s operating income comes from receivable collection.

Under J-GAAP Highlights of domestic financial business

Under J-GAAP

17

18

Domestic financial business / Credit guarantee business

Built up credit guarantee balance as planned.

Steadily increased the number of approved Apartment Loan toward FY 2016

target of 48.7 billion yen.

Key Point

Credit guarantee balance at Nihon Hoshou Approved Apartment Loans

(in 100 million yen) (in 100 million yen)

362 367 370 371 377 379 386 387 389

6 7 14 20 21 28 38 48

64

368 374 384 391 398

407 424

435

453

487

200

300

400

500

15-Apr 15-Jun 15-Aug 15-Oct 15-Dec Mar-16(plan)

Credit guarantee balanceApartment loansTotal

7 11 36

72

107

134 154

179

208

0

50

100

150

200

250

Apr. May June July Aug. Sept. Oct. Nov. Dec.

1,196 1,251 1,471

2,572 2,833

3,492 3,421

4,612 4,651

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Jun-15 Sep-15 Dec-15

Domestic financial business / Receivable collection business

In the 3rd quarter, Partir Servicer’s amount of receivable continued to increase.

Already achieved the amount of receivable as FY2016’s target: 384.1 billion

yen (achievement rate: 121%, which exceeded the target of FY2017).

Key Point

Amount of receivable


FY2016 target: 3,841

FY2017 target: 4,409

19

Domestic financial business / Full-year target

Operating income under IFRS reached 103% of the target. Further growth is

expected.

Key Point

December 2015

J-GAAP

December 2015

IFRS

March 2016

IFRS plan

Progress vs. full-

year target (IFRS)

Operating revenue 82 79 111 71.2%

Operating income 28 33 32 103.1%

Expected increase in operating income (under IFRS)



11

19

33 32

0

5

10

15

20

25

30

35

15-Jun 15-Sep 15-Dec Mar-16(plan)

20

Financial business in South Korea

21

22

Financial business in South Korea / Highlights

Reported solid operating revenue.

Operating income steadily increased. However, the increase was marginal due

to the impact of negative goodwill posted in FY2015 under J-GAAP.

Key Point

Major subsidiaries’ operating income in financial business

in South Korea

Highlights of financial business in South Korea Under J-GAAP

Under J-GAAP



Operating income 1 1 -1 1 +2

FY2016 Apr - Dec Apr - Jun Jul - Sep. Oct - Dec Change

JT Chinae Savings Bank 20 6 6 7 +1

JT Savings Bank 3 0.4 1 1 ±0

JT Capital 28 39 -5 -5 ±0

TA Asset Management 10 1 2 6 +4

(Note) Non-consolidated basis (before consolidated adjustment) as per Japanese standards



768

464

767 727

516 652

854 947 905

92

225

298

165

223

213

270 261

238

115

102

113

130

167

143

160 156 266

975

790

1,178

1,022

906

1,008

1,284 1,364

1,409

0

200

400

600

800

1,000

1,200

1,400

1,600

Apr. 2015 May 2015 June 2015 July 2015 Aug. 2015 Sept. 2015 Oct. 2015 Nov. 2015 Dec. 2015

JT Capital

JT Savings Bank

JT ChinaeSavings Bank

23

Financial business in South Korea / New loan balance

Due to success in enhancing J Trust brand uniformity, the amount of loan

disbursed per month hit a record high of 140.9 billion won in December 2015.

Key Point

Amount of loan disbursed per month (in 100 million won)

1KR₩＝0.1033 yen

avg 981 avg 979

avg 1,352

17,327 17,341 17,175 17,212 17,267 17,295

17,801

18,292

18,481

20,053

63 112

206

15,500

16,000

16,500

17,000

17,500

18,000

18,500

19,000

19,500

20,000

20,500

Apr. 2015 May 2015 June 2015 July 2015 Aug. 2015 Sept. 2015 Oct. 2015 Nov. 2015 Dec. 2015 Mar. 2016(plan)

Total Sale

24

Financial business in South Korea / Loan balance

Loan balance on a net basis has been increasing steadily since June 2015 and

we expect to continue the trend.

Key Point

Loan balance

1KR₩＝0.1033 yen

(in 100 million won)

14,694

3,786

6,156

17,327 18,481

34.50%

8.74% 6.62%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

Apr-14 May Jun Jul Aug Sept Oct Nov Dec Jan-15 Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec

Loan disbursed by group companies Purchased receivables Delinquency ratio

Financial business in South Korea / Operating assets

Steady increase in loans screened and disbursed by group companies

(bad debt ratio below 3%) and strong Servicer led to a reduction of NPL.

Going forward, further reduction of NPL disposal costs is expected.

Key Point

Loan balance and delinquency ratio at savings banks/capital company (in 100 million won)

1KR₩＝0.1033 yen *Definition of NPL: loans that are delinquent for 30 days or more

25

-276

-180

11

70

-300

-250

-200

-150

-100

-50

0

50

Oct. 2012Commenced Operation

1st fiscal periodended Jun. 2013

for 9 months

2nd fiscal periodended Jun. 2014

for 12 months

3rd fiscal periodended Jun. 2015

for 12 months

4th fiscal periodended Dec. 2015

for 6 months

Financial business in South Korea / Reform of Chinae Savings Bank

K-GAAP Operating Income of JT Chinae Savings Bank

(in 100 million won)

Became profitable in two and a half years

Changes in

accounting periods * In December 2015, fiscal year end of all savings banks in South Korea was changed to December.

K-GAAP

JT Chinae Savings Bank became profitable within 2.5 years of its founding by

assuming a part of assets and liabilities from a savings bank which had ceased

operations.

In the 4th fiscal period, JT Chinae Savings Bank realized an operating income of 7.0

billion won.

26

Focus

Financial business in South Korea/Public Relations 1

JT Chinae Savings Bank received an award in AJU BUSINESS DAILY

FINANCE・STOCK AWARDS 2015 in Dec. 2015, hosted by an internationally

acclaimed AJU BUSINESS DAILY newspaper.

Selected among all financial institutions in South Korea.

Recognized as a trusted company based on close relationship with customers and

rigorous compliance structures.

Key Point

27

28

Financial business in South Korea / Public Relations 2

JT Chinae Savings Bank received the1st award in 79 savings banks of 2016

FIRST BRAND AWARDS KOREA (among 54 industries) in South Korea.

The award recognizes JT Chinae Savings Bank’s high evaluation and support by

local customers.

There are only 2 Japanese companies: 7-Eleven and JT Chinae Savings Bank were

selected in the award.

Key Point

Categories

Evaluation for

satisfaction

levels

Satisfaction in quality and service

Price satisfaction

Satisfaction level against

expectation

Loyalty

Recommendation to others

Preference Most preferable brand in each sector

(2nd)

The Award Ceremony Evaluation methods and categories

Evaluation Method

Monitoring by

consumers

Monitored 852,740 consumers living

in S. Korea, over 15 years old

Monitoring Period From Nov. 19 to 29, 2015

No.1

61

1

-38

-17

- 5

Operating income(J-GAAP) for

S. Korean subsidiaries(before consolidation

adjustment)

Goodwill IDecrease by NPL sale

Goodwill IIDecrease by other reasons

Others Operating income(J-GAAP) for

S. Korean subsidiaries(after consolidation

adjustment)

Financial business in South Korea / Full-year Target

Impact of goodwill amortization on OP income as of end Dec. 2015


SC Capital

SC Savings Bank

JT Chinae Savings Bank

TA Asset Management

Gain on bargain purchase which was posted in FY 2015 affects this year’s

consolidated operating income.

Total operating income of subsidiaries in South Korea converted into JGAAP is 6.1

billion yen.

Key Point

29

Financial business in South Korea / (Reference) Impact of goodwill amortization under JGAAP

Impact of negative goodwill posted in FY 2015, when we acquired JT Savings

Bank and JT Capital.

Key Point

Decrease in balance of goodwill (in 100 million yen)

*1 Won＝0.1 yen

104

55 50

34

At acquisitions of JTCK andJTSB as of Mar. 2015

Sep. 2015 actual Dec. 2015 actual Mar. 2016 plan

Apr - Sep

NPL 38

Others 11

TTL

49

3Q Apr- Dec

NPL 0 38

Others 6 17

TTL

6 55

4Q

(Plan)

Apr - Mar

(Plan)

NPL 10 48

Others 6 23

TTL 16 71

In 2-4 years

30

Dec 2015

J-GAAP

Dec 2015

IFRS

Mar 2016

FIRS (forecast)

Progress vs. full-

year target (IFRS)

Operating Revenue 199 201 300 67.0%

Operating Income 1 -3 25 -12.0%

0.1 -8

(-3)

25

-10

0

10

20

30

40

Jun. 2015 Sept. 2015 Dec. 2015 Gain on sales ofNPL

Reduction inadvertisingexpenses

Intensifiedmarketing

efforts/Gain on sales of

receivables

Goodwillamortization

March 2016(plan)

Financial business in South Korea / Full-year target

With gain on sale of NPL and measures such as reinforcement of sales activities,

and reduction in advertising expenses, we aim to attain the full year target.

Introduced the new method for estimating provisions of allowance for doubtful accounts

under IFRS as of end December 2015, which solved the issue of previous quarters.

Key Point

(in 100 million yen) Estimated Operating Revenue under IFRS

Already reviewed estimating allowance

for doubtful accounts based on new

accounting methodology.

31

32

Financial business in Southeast Asia

テキストテキスト

Ｐｏｉｎｔ Recorded flat operating revenue, for the loan balance remained insufficient due

to continuing NPL disposals. Posted negative current-account balance of 0.2-0.3

billion yen each month.

Increased operating loss due to the provision of allowance for doubtful accounts. (Note) Disclosed as IFRS reference figure in 2Q.

Key Point

FY2016 Apr - Dec Apr - June Jul - Sep Oct - Dec Change

Operating revenue 90 32 29 29 0

Operating income -57 -25 -9 -23 -14

■ Image of consolidating results of Bank JTrust Indonesia (operating income)

IFRS June 2015 September 2015 December 2015 March 2016

J-GAAP June 2015 September 2015 December 2015 March 2016

-5 -30

-5

-25 -9

-23

J-GAAP

IFRS

Highlights of financial business in Southeast Asia

Financial business in Southeast Asia / Highlight

Under J-GAAP (in 100 million yen)


33

■ Differences by applicable standard (operating income)

FY2016 Total Apr - Dec Apr - Jun Jul - Sep Oct - Dec

IFRS -40 -5 -30 -5

J-GAAP -57 -25 -9 -23

Recorded operating loss in 2 periods (January-March and July-September)

mainly due to provision of allowance for doubtful accounts.

Improved operating income under IFRS by 25 billion yen in 3Q (October-

December) from 2Q (July-September).

Key Point

Operating loss breakdown:

Single-month ordinary loss (approx. -2.5) x 3 = -7.4

+ Provision of allowance for doubtful accounts of -5.2 = -12.6

Amortization of goodwill: -4.7

Loss on NPL disposal (posted ahead of schedule as a subsequent event): -4.6

Other consolidated adjustment: -0.8

Consolidated operating loss: -22.7

Incl. allowance for doubtful accounts of -14

Financial business in Southeast Asia / Highlight



34

Financial business in Southeast Asia/Achievements to date

Focused on restructuring through various measures since January 2015.

Implemented property asset (collateral) review/transfer,

reorganization/restructuring and further capital injection in a timely and speedy

manner.

Key Point

Achievements to date

Change the corporate name to “PT Bank JTrust Indonesia Tbk.” (Bank JTrust Indonesia).

Carefully reviewed the asset quality and set aside allowance for doubtful accounts as necessary.

Then, transferred NPLs to PT JTRUST INVESTMENTS INDONESIA (hereinafter, “JTII”) to focus on

collection activity.

Applied our collection know-how accumulated in Japan and South Korea. Also, sent in collection experts.

Set up an exclusive team (Special Asset Management Team) within J Trust Bank to prevent assets from

turning into NPLs.

Sent in the management team for reorganization purpose.

Improved the capital adequacy ratio through additional capital injection (IDR300 billion in March, IDR400

billion in September, USD25 million in October in subordinated bonds) for future asset expansion.

35

8,478 4,871

7,361

14,371

1,923

24,773

0

5,000

10,000

15,000

20,000

25,000

30,000

Loan collectable Book value Collection plan(accumulated till December 2017

NPL

Recovered debts

Attached debts

Transferred NPL amount of 2.4 trillion rupiah (approx. 22 billion yen) to PT

JTRUST INVESTMENTS INDONESIA (JTII) for 487.1 billion rupiah (approx.4.3

billion yen)

The target is to collect 736.1 billion rupiah by December 2017.

Key Point

Estimated gross profit:

IDR 249 billion or

approx. 2.2 billion yen

NPL collection plan by PT JTII

1IDR＝0.0088 yen

Financial business in Southeast Asia / NPL collection plan

(in IDR100 million)

36

Financial business in Southeast Asia / Enforced management

Hired Mr. Ritsuo Ando, who awarded The Best CEO in Leadership in

Indonesian Banking Awards 2013, to accelerate pursuit of our mid-term

business plan.

Hiring executive managements by maximizing Mr. Ando’s personal network in

Indonesia.

Key Point

Career Highlights of Mr. Ritsuo Ando

1979 Joined Daiwa Bank (currently Resona Bank)

1989 Bank Perdania (Daiwa Bank’s local subsidiary in Indonesia),

currently PT Bank Resona Perdania (Indonesia)

1996 Chief of Indonesia Department, International Division, Daiwa Bank

2001 President Director, PT Daiwa Lippo Finance (currently PT Resona

Indonesia Finance)

2007 General Manager, Overseas Business Development Department,

ACOM CO., LTD.

2008 Vice President Director, PT Bank Nusantara Parahyangan

2009 President Director, PT Bank Nusantara Parahyangan

2013 Won The Best CEO in Leadership in Indonesian Banking Awards 2013

2015 November 1: Joined Bank J Trust Indonesia

December: Director, Bank J Trust Indonesia

37

Financial business in Southeast Asia / Branding strategy

Changed the name of the bank to enhance “Japan brand (quality)”marketing

Differentiate J TRUST BANK from other Indonesian banks to optimize a nation

friendliness towards Japan.

Key Point

Wall sign on the main office with new company name (left) /

Inside and the exterior of a branch (right)

38

80,735 83,157 83,806 84,081 86,344 88,656

84,374

87,173

93,870

4.50% 4.90%

6.40%

6.90%

7.50% 7.50%

3.00% 2.80%

2.60%

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

8.00%

0

20,000

40,000

60,000

80,000

100,000

Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15

Financial business in Southeast Asia / operating assets and NPL ratio

Transferred NPLs of 22 billion yen (approx.) to JTII in Oct. 2015.

Reduced the NPL ratio to less than 3%. This, along with the additional capital injection,

shifted the bank’s status in the FSA regulatory control from “specified” to “general”.

Moved to a trend in loan expansion (e.g. IDR1.6 trillion built up in 3 months).

Recorded high on net increase of 669.7 billion rupiah in Dec. 2015 since its acquisition.

Key Point

Operating assets and NPL ratio

Decrease by

transferring NPL to

JTII

1IDR = 0.0088 yen

IDR1.6 trillion growth

in 3 months

(in IDR100 million)

39

10,583 11,013 10,871 10,943

10,530 10,765

9,881 10,242

11,024

8.97% 8.87%

8.42% 8.30%

8.15%

7.69% 7.56%

8.01% 8.11%

6.00%

7.00%

8.00%

9.00%

5,000

6,000

7,000

8,000

9,000

10,000

11,000

12,000

Apr. 2015 Ma, 2015 June 2015 Jul, 2015 Aug, 2015 Sep, 2015 Oct, 2015 Nov, 2015 Dec, 2015

Deposit Cost of Fund

Gradually reduced COF by negotiating to lower high interest rates on large time deposit

accounts.

Built up low-interest deposits, focusing on sales activity to raise CASA ratio.

Slightly increased deposits in the 3rd quarter of FY 2016, following the promotion to

accumulate liquid deposit toward the end of the fiscal year.

Accomplished the targeted interest rate on ordinary and dollar deposits with 8.04% average

(8.20% target)

Key Point

1IDR＝0.0088 yen

0 0.00%

Financial business in Southeast Asia / Deposit and COF (cost of fund)

Deposit and COF (in IDR100 million)

40

9.99%

10.55%

11.22%

9.00%

9.50%

10.00%

10.50%

11.00%

11.50%

Apr-Jun Jul-Sep Oct-Dec

Interest income increased due to expansion in operating assets and the rise in

average lending interest rate.

Reduced in deposit-related costs also contributed to steady growth in net interest

income (interest income less interest expense).

Key Point

FY2016 Apr - Jun Jul - Sep Oct - Dec

Operating assets 83,806 88,656 93,870

Average lending interest

rate 9.99% 10.55% 11.22%

Average deposit interest

rate 8.43% 7.69% 8.04%

Net interest income 200 412 683

200

412

683

0

200

400

600

800

Apr-Jun Jul-Sep Oct-Dec

Average lending interest rate

Main figures of Bank J Trust Indonesia

Net interest income

(in IDR100 million)

Financial business in Southeast Asia / Other key indicators

41

Financial business in Southeast Asia/Structural reform

Loan: Accumulated loans actively by setting up a new financing team.

Deposit: Lowered COF by building up CASA through new mobile/Internet

banking service for individual customers or via our Japan desk.

Key Point

Shift the target from large corporations to mid-size

companies.

Increase SME targeted loans.

Further promote asset-based loans to small business

owners: Acceptable collateral is automobile, motorbike,

equipment, receivable, inventory, etc.

Develop hire-purchase financing for consumers via

GLFI (Group Lease Finance Indonesia).

Set up Japan and South Korean desks.

Accumulate deposit and reduce COF by developing

new deposit products.

Launched mobile/internet banking service.

Develop rupiah-basis products in Japan and build up

deposit at low cost in collaboration with Japanese

partner financial institutions.

42

-25

-15

-34 -40

-60

-40

-20

0

Jun 2015 Sep 2015 Dec 2015 Mar 2016(plan)

December 2015

J-GAAP

December 2015

IFRS

March 2016

IFRS (plan)

Progress vs. full-

year target (IFRS)


Operating income -57 -40 15 -266.7%

We will have constantly reached the break-even point by Mar. 2016, to be

accumulated loan balance, reduced interest costs and SG&A expenses.

The fiscal year-end will record a reversal of allowance for doubtful accounts* for

NPL disposals, which leads to better delinquency ratio under IFRS. *Amount to be confirmed.

JTII’s collection of NPL receivable will contribute to our earnings in earnest.

Key Point

Financial business in Southeast Asia / Full-year plan

Jan – Sep 2015 Apr – Dec 2015 (in 100 million yen)

Expected increase in operating income (IFRS) (in 100 million yen)

43

Non-financial business/Investment business

44

42

125

26 12

206

Real estate Generalentertainment

Investment Businesscombination/Other

Operating revenue(Apr.-Dec.)

3 -1

25

-[値]

26

Real estate Generalentertainment

Investment Businesscombination/Other

Operating revenue(Apr.-Dec.)

Benefited greatly from investment business of JTRUST ASIA PTE. LTD.

Added gain by underwriting and reporting GL’s convertible bonds and reported

2.5 billion yen in operating income from investment business.

Key Point



Operating income 27 1 9 17 +8

Highlights of non-financial and investment business Under J-GAAP

Operating revenue Operating income

(in 100 million yen) (in 100 million yen)

Non-financial business / Investment business / Highlight

45

1 6

9

17

0

5

10

15

20

25

30

Jun 2015 Sep 2015 Dec 2015 Mar 2016(plan)

December 2015

J-GAAP

December 2015

IFRS

March 2016

IFRS (plan)

Progress vs. full-

year target (IFRS)


Operating income 27 32 6 533.3%

The target is to accumulate profits to contribute to the consolidated business

results.

Key Point

Non-financial business / Investment business / Full-year plan

Expected increase in operating income under IFRS (in 100 million yen)

46

Summary

47

FY2016 Full-year

plan Apr-Jun Jul-Sep Oct-Dec Apr-Dec Difference

Domestic financial

business 32 11 8 13 33 +1


South Korea 25 -8 0.7 5 -3 28 more


Southeast Asia 15 -5 -30 -5 -40 55 more

Non-financial /

Investment business 6 1 12 18 32 +26

Others* － -17 -11 2 -28 -

Total 75 -18 -21 33 -6 81 more

Continue our efforts to meet the mid-term business plan by offsetting financial

shortage in Southeast Asia with domestic financial and investment businesses.

Key Point

* Others includes gain/loss which does not belong to any segments and consolidation adjustments

(Foreign exchange losses (gains), loss on nursing care business, loss on sales of subsidiaries’ stocks)

Actual and target Under ＩＦＲＳ *unaudited

Summary / Road to achieve the full-year plan


48

3rd quarter of fy2016 earnings presentation · (consolidated operating income after consolidation...

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