Message to shareholders and investors

In our previous medium-term business plan "MOVE 70," which started in fiscal year 2022, we set how the Group should look in three years' time as "expanding the revenue base of the domestic business by leveraging our strengths," "establishing a revenue base for the overseas business that will drive future growth," "strengthening the management structure to accelerate domestic and overseas growth," and "promoting ESG management," and we implemented various strategies toward realizing our long-term vision of "Establish JACCS' position as a leading brand among Asian consumer finance companies."

As a result, we progressed generally smoothly through the first two years, achieving record-high profits. However, due to increased financial costs resulting from the Bank of Japan's lifting of the negative interest rate policy in March 2024 and additional rate hikes in July of the same year, along with poor performance in overseas businesses due to prolonged market slumps in Vietnam and Indonesia and increased bad debt-related costs, our performance for fiscal year 2024, the third year of the previous medium-term business plan, is expected to show increased revenue but decreased profits for both consolidated and non-consolidated results. And regrettably, in anticipation of the future business environment, we plan to reduce the annual dividend from the previous year.

To address the challenges identified in the previous medium-term business plan and respond to changes in the business environment, we concluded a capital and business alliance agreement through a third-party allotment of shares with MUFG Bank, Ltd. in March 2025, to strengthen and deepen our alliances in terms of both capital and business. In response to this, we will embark on our new medium-term business plan "Do next!" from fiscal year 2025, with the theme of three years of challenging "Transformation" and "Renewed Growth" through expanded collaboration with the MUFG Group. "Do next!" embodies our desire for JACCS to move to the next step amid significant environmental changes, along with each employee taking initiative with an awareness of the next goal.
In order to steadily execute the three key strategies of our new medium-term business plan—"Accelerate the growth strategy through collaboration with MUFG Group and M&A," "Promote radical business restructuring through shifting to a paradigm of 'From Quantity to Quality,'" and "Secure financial soundness and improve capital efficiency through advancement of ALM"—we will utilize the funds raised through the capital increase to invest in growth and efficiency more than ever before. Additionally, we have strengthened our dividend policy to "the higher of DOE (dividend on equity ratio) of 3.0% or a dividend payout ratio of 40% as a guideline," and we will work toward renewed growth and enhanced corporate value.

We look forward to your continued support and understanding as we work toward our goals.

Ryo Murakami
President and Representative Director
April 2025