We drew on our expertise in the consumer credit business in looking to expand in markets in the fast-growing ASEAN region. After entering Vietnam in 2010, we expanded into Indonesia in 2012 and the Philippines in 2016.
We aim to stabilize our operations while solidifying our business foundations and stepping up efforts to expand our businesses. We also seek to maintain top positions in each market while establishing a strong brand presence for JACCS.
We will also deploy business resources in other swiftly expanding Southeast Asian countries to swiftly penetrate new markets.

Entering Vietnam JACCS International Vietnam Finance Company Limited

Vietnam's motorcycle market is seven to eight times bigger than that of Japan.
Annual demand exceeds 3 million units, fueling a growing need for sales finance services.
In June 2010, we established a wholly owned subsidiary in Ho Chi Minh City that drew on its position as a Japanese-owned company to bolster its member store network, centered on the dealers of Japanese motorcycle makers. That company has broadened its operations to encompass finance for automobiles and appliances and credit cards and card loans, contributing to Vietnam's economic progress.

Entering the Indonesian market PT Mitra Pinasthika Mustika Finance

Indonesia is the world's fourth-largest country. Its population of 255 million is young, with an average age of around 28. There is thus considerable potential for domestic demand expansion and economic growth over the medium and long terms.
In December 2012, JACCS acquired a 40% stake in PT Sasana Artha Finance (SAF), which offers motorcycle sales finance, and began participating in its management. May 2014 saw an agreement to merge SAF with its group company, PT Mitra Pinasthika Mustika Finance, which provides automobile sales finance. The latter company was the surviving entity. We bought shares in that company and continued our managemental participation. In May 2017, with a view to future expansion of operations, JACCS acquired an additional 20% equity stake in MPMF Consequently, JACCS' total stake rose to 60% of MPMF's common stock, and the company became a consolidated subsidiary of JACCS.
Indonesia was the second Asian market we entered outside Japan. We are drawing on the sales finance business expertise we amassed domestically in the drive to expand operations in Indonesia.

Moving into the Philippines MMPC Auto Financial Services Corporation

The Philippines is home to more than 100 million people, and has one of the fastest expanding economies in Southeast Asia. It is on track to maintain its swift growth rates.
The nation's automobile sales market is continuing to become larger alongside solid economic and consumer market increases. These considerations prompted JACCS to enter an agreement with Sojitz Corporation, Mitsubishi Motors Philippines Corporation, and BDO Leasing and Finance, Inc., a subsidiary of BDO Unibank, Inc., the largest commercial bank in the Philippines, to establish MMPC Auto Financial Services Corporation in February 2016. That joint venture began operations in September 2016 as a captive finance company for sales of Mitsubishi Motors' vehicles. It aim to conclude sales finance contracts for more than 20,000 vehicles annually by 2020.

Making overseas operations pivotal to profits

In expanding abroad, JACCS aims to make overseas business a fourth key earnings driver after the credit, credit card, and financing businesses. We aim to generate stable earnings and build solid presences in each country while seeking opportunities to expand into other markets around Southeast Asia.