Medidas necesarias para la conformación de un Consorcio

• Credit Card

In card shopping, the volume of new contracts and operating revenue increased, driven by the use of co- branded cards issued through alliances with large-scale consumer electronics stores and discount stores. With regard to several co-branded cards launched in the previous fi scal year, membership grew steadily and the volume of new contracts rose, underpinned by promotional campaigns aimed at increasing card usage.

In rent-related products, in addition to a continuation of stable business conducted with the Group’s main alliance partners, through an expansion of new partnerships the Company achieved a robust increase in the volume of new contracts.

As a result, on a consolidated basis, in the credit card business the volume of new contracts increased 4.8% compared with the previous fi scal year, to ¥1,306,907 million (US$11,773 million), and operating revenue rose 3.7%, to ¥33,337 million (US$300 million).

2015 3,404.5 3,768.1 4,158.7 4,559.2 3,061.2 2016 2017 2018 2019 5,000 4,000 3,000 2,000 1,000 0

Total Volume of New Contracts (Billions of Yen) Credit card Installment sales fi nance Credit guarantee Financing Other operations

• Installment Sales Finance

In shopping credits, the volume of new contracts and operating revenue increased, driven by continuing robust performance in such major product categories as motorcycles and premium wristwatches, as well as an expansion in usage at house builders—a key target channel within this business—for home renovation loans and solar loans.

An enhancement of the convenience of Web-based credit applications also contributed to an increase in the volume of new contracts.

In auto loans, the imported-vehicle market performed strongly, underpinned by high-quality services provided to alliance partners and the effectiveness of a range of measures. In the used-vehicle market, the volume of new contracts and operating revenue increased, driven by efforts to strengthen the Group’s relationships with major used-vehicle dealerships and the promotion of a range of other measures.

As a result, on a consolidated basis, the installment sales fi nance business recorded a 31.9% increase in the volume of new contracts, to ¥985,208 million (US$8,875 million). Operating revenue grew 19.3%, to ¥32,578 million (US$293 million).

• Credit Guarantee

Housing loan guarantees on condominiums for investment purposes recorded growth in the volume of new contracts and operating revenue, driven by such factors as expansion in market share at existing alliance partners based on the launch of new products, and an increase in new partnerships.

Within personal loan guarantees for fi nancial institutions, the volume of new contracts and operating revenues increased. This was attributable to such factors as a promotional campaign executed by MUFG Bank, Ltd., for its major Web-based auto loan product, and the Company’s efforts to propose products that meet the needs of regional banks and other fi nancial institutions.

However, the overall volume of new contracts in the credit guarantee business declined owing to the transfer of certain products to the installment sales fi nance business.

As a result, on a consolidated basis, the credit guarantee business recorded a 2.2% decrease in the volume of new contracts, to ¥837,565 million (US$7,545 million). Operating revenue fell 1.9%, to ¥40,767 million (US$367 million).

• Financing

Although cash advances remained on a declining trend, other lending expanded, leading to an increase in the volume of new contracts. Operating revenue decreased, refl ecting the impact of a decline in the balance of cash advances. 108.2 113.6 200 160 120 80 40 0 119.6 134.0 145.8 2015 2016 2017 2018 2019 Total Operating Revenue

(Billions of Yen)

Credit Guarantee

When a consumer purchases real estate or an automobile and applies for a loan from a JACCS partner fi nancial institution to cover the purchase, JACCS carries out a credit check and provides a guarantee of the debt to the partner fi nancial institution. The main loan categories are condominiums for investment purposes, home renovation loans, and auto loans.

Financing

This segment mainly comprises cash advances made to credit card members. Cards issued by JACCS include credit cards and specialized cash advance cards.

Other Operations

Other operations include bill collection services on behalf of partner companies for regular-payment items collected via JACCS’ account fund transfer network and leasing operations serving both corporate clients and individual customers.

7.1 7.5 8.7 8.9 7.8 10.0 7.5 5.0 2.5 0 2015 2016 2017 2018 2019 Net Income Attributable to Owners of the Parent (Billions of Yen) 6,000 4,800 3,600 2,400 1,200 0 3,158.0 3,437.6 3,710.5 4,193.0 4,813.2 2015 2016 2017 2018 2019 Total Assets (Billions of Yen) As a result, on a consolidated basis, the fi nancing business recorded a 15.4% increase in the volume

of new contracts, to ¥82,954 million (US$747 million). Operating revenue decreased 3.0%, to ¥9,711 million (US$87 million).

• Other Operations

In bill collection services, the volume of new contracts rose, particularly centering on such regular monthly payment categories as rent collection and fi tness club membership fees. The volume of new contracts and operating revenue increased, driven by the execution of promotional campaigns with new alliance partners, and an expansion in the number of companies offering account direct debit services using mobile devices.

Leasing operations achieved an increase in the volume of new contracts, driven by business alliance operations with vehicle leasing organizations.

As a result, on a consolidated basis, other operations posted an 7.1% increase in the volume of new contracts, to ¥1,273,575 million (US$11,473 million). Operating revenue* increased 13.4%, to ¥13,840 million (US$124 million).

* Operating revenue presented for other operations is the sum of other operating revenue and fi nancial revenue.

As a result, the volume of new contracts in the domestic business segment as a whole increased 9.1% compared with the previous fi scal year, to ¥4,486,212 million (US$40,416 million), and operating revenue grew 5.7%, to ¥130,236 million (US$1,173 million). Segment income amounted to ¥14,062 million (US$126 million), an increase of 19.5% compared with the previous fi scal year.