Earnings Presentation Materials · Earnings Presentation Materials FY12/2019 February 2020 J Trust Co., Ltd. 1 Table of Contents I. Consolidated Results in FY12/2019 1. Summary of

Copyright(C)2020 JTRUST Co.,Ltd. All Rights Reserved.

Earnings Presentation Materials

FY12/2019

February 2020

J Trust Co., Ltd.

1

Table of Contents

I. Consolidated Results in FY12/2019

1. Summary of Consolidated Results

2. Results by Segment

3. Results Forecast for FY12/2020

II. Future Growth Strategy

2

Disclaimer

• In conjunction with the change in the accounting period, the current period consists of nine months from April 2019 to December 2019.

• Figures for YOY comparisons in this document use the total from the nine month period between April and December 2018.

• J Trust has classified the results of Highlights Entertainment, which it sold in FY03/2019, as discontinued operations and has similarly classified “operating revenue”, “operating profit” and “profit before tax” as such in year-on-year (“YOY”) comparisons.

• As a principle, the units listed on each page have been rounded down to the nearest unit of display. In addition, differences listed next to the charts and graphs illustrating YOY comparisons are calculated using the display unit of 0.1 billion.

• Segment revenue shows operating revenue from external customers.

• Information regarding forecasts listed in this document is estimated based on the knowledge, opinions and judgement of the company at the time of the document’s creation and contains underlying risks and uncertainties. Therefore, please understand that actual results and the forecast described here are subject to change greatly depending upon various factors such as the business environment.

• This document is intended to provide information about J Trust and is not intended to solicit investments in securities issued by the company.

• This English-translated document was prepared solely for the convenience of English-speaking investors. If any discrepancies exist between this translation and the original Japanese document, the Japanese version always prevails. J Trust shall not be liable for any damages or losses of profit arising from this translation.

3

１．Summary of Consolidated Results

in FY12/2019

Senior Managing Director, Executive Officer and Finance Department

General Manager

Ryuichi Atsuta

44

Summary of Consolidated Results

Financial Business in Japan

Financial Business in South Korea and Mongolia

Financial Business in Southeast Asia

5

Revenue and profit increased year-on-year.

3Q FY03/2019(2018/4/1~2018/12/31)

FY12/2019(2019/4/1~2019/12/31)

Difference FY03/2019(For reference)

Operating revenue※ 55.1 billion

JPY58.1 billion

JPY+3.0

billion JPY74.9

billion JPY

Operating profit※ -29.7 billion

JPY0.2 billion

JPY+29.9

billion JPY-32.6

billion JPY

Profit (or loss) before tax

※

-28.6 billion JPY

-0.3 billion JPY

+28.3 billion JPY

-31.1 billion JPY

Profit (or loss) attributable to

owners of parent

-32.7 billion JPY

-3.2 billion JPY

+29.5 billion JPY

-36.1 billion JPY

Consolidated Results (YOY)

※ Operating revenue, operating profit, and profit (or loss) before tax do not contain results from discontinued business.

66

Operating revenue increased year-on-year.

Q3 FY03/2019(2018/4/1~2018/12/31)

FY12/2019(2019/4/1~2019/12/31)



7.3 billion JPY 7.6 billion JPY+0.3 billion

JPY10.5 billion

JPY

Financial Business in South Korea and

Mongolia30.1 billion JPY 29.5 billion JPY

-0.6 billion JPY

39.5 billion JPY



JPY13.0 billion

JPY

Investment Business 0.7 billion JPY 0.7 billion JPY-0.0 billion

JPY1.0 billion

JPY

Non-Financial Business（Entertainment, Real Estate）


JPY7.9 billion

JPY

Other business 2.4 billion JPY 0.8 billion JPY-1.6 billion

JPY2.8 billion

JPY

Consolidated operating revenue


JPY74.9 billion

JPY

Operating Revenue by Segment (YOY)

Amounts shown do not include amounts resulting from discontinued operations.

77

Operating profit improved greatly, allowing us to secure a surplus.

Q3 FY03/2019(2018/4/1~2018/12/31)

FY12/2019(2019/4/1~2019/12/31)


Financial Business in Japan 3.2 billion JPY 3.0 billion JPY -0.2 billion JPY 4.2 billion JPY



JPY4.8 billion JPY


-14.3 billion JPY -4.6 billion JPY+9.8 billion

JPY-17.7 billion

JPY

Investment Business -20.0 billion JPY -1.7 billion JPY+18.3 billion

JPY-20.5 billion

JPY

Non-Financial Business（Entertainment, Real Estate）


JPY0.0 billion JPY

Other business -0.0 billion JPY -0.4 billion JPY -0.4 billion JPY 0.0 billion JPY

Company-wide expenses, etc. -2.6 billion JPY -4.0 billion JPY -1.4 billion JPY -3.5 billion JPY

Consolidated operating profit -29.7 billion JPY 0.2 6billion JPY+29.9 billion

JPY-32.6 billion

JPY

Operating profit by segment (YOY)

Amounts shown do not include amounts resulting from discontinued operations

8

Results Forecast and Rate of Progress by Segment

Operating Revenue and Operating Profit by Segment

FY12/2019Initial Results Forecast

※4/1~12/31 (9 mos.)

FY12/2019Results

※4/1~12/31 (9 mos.)

PercentAchieved


Operating revenue

6.9 billion JPY 7.6 billion JPY 110%

Operating profit 2.9 billion JPY 3.0 billion JPY 103%


Operating revenue




Operating revenue


Operating profit -1.7 billion JPY -4.6 billion JPY -

Investment Business

Operating revenue



Non-Financial Business

Operating revenue



Company-wide expenses/ Consolidated adjustments, etc.

Operating revenue

1.3 billion JPY 0.8 billion JPY -


Consolidated Total

Operating revenue


Operating profit


9

２．Results by Segment

２－１．Financial Business in Japan

10

3.23

3Q FY03/2019 FY12/2019

Operating revenue increased due to an increase in guarantee commission received. Although operating profit decreased slightly year-on-year, we achieved our target value

of 2.9 billion yen.

7.3 7.6

3Q FY03/2019 FY12/2019

Operating Revenue

Unit: Billions of yen

Operating Profit

11

We will transition from condominium loan guarantees to new guarantee products such as guarantees on crowdfunding products or overseas property-backed loans.

38.7 43.6 46.4

5.6 6.8

47.2

151.3157.6

85.9

200.5210.8

0

50

100

150

200

250

2017/

03 06 09 12

2018/

03 06 09 12

2019/

03 06 09 12

Outstanding Balance of Guarantees

Light blue＝Condominium loan guaranteesYellow＝ Overseas property-backed loan guaranteesBlue＝Other guarantees


1212

We will expand new guarantee products and increase the guarantee balance

All crowdfunding products backed by Nihon Hoshou’s guarantees achieved their target amounts within 24 hours.

The three products which we announced in January all reached the full solicited amounts within one hour.

Crowdfunding products backed by Nihon Hoshou guaranteesGuarantees on

overseas property-backed loans

13

Conducted a periodic reevaluation of off-balance receivables Purchases of receivables went well; we continued to have over 900 billion

yen in claimed receivables

730.6759.2 772.3 783.3 782.8 787.4 788.8 792.8

Approx.

110

Approx.

110

Approx.

140

Approx.

140

Approx.

150

Approx.

150

Approx.

150

Approx.

130

2017/

03 09

2018/

03 09

2019/

03 06 09 12

Balance includes both purchased and entrusted receivables.

Balance includes some on-balance receivables.


Balance of claimed receivables in servicer business

Total:

900+ billion yen

Off-balance

(claimable)

receivables at Nihon Hoshou

Balance of

claimed receivables

handled by

Partir Servicer

14


２－２．Financial Business in South Korea and Mongolia

15

Operating revenue decreased due to a decline in average loan interest rates Decreases in expenses related to bad debts and gains from the sale of NPLs

contributed to a significant increase of operating profit

30.1 29.5

3Q FY03/2019 FY12/2019

4

7.5

3Q FY03/2019 FY12/2019

Operating Revenue


Operating Profit

1616

Loans delinquent over 90 days remained at a low level. We worked toward accumulating stable assets while focusing on asset “quality”.

130149.3

100.384.4

18.1 9.7

91 115

339.4

358.4

5.0%

4.2%3.6%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

20.0%

0

50

100

150

200

250

300

350

400

2016/

03 06 09 12

2017/

03 06 09 12

2018/

03 06 09 12

2019/

03 06 09 12

Secured corporate loans

Unsecured corporate loans

Secured consumer loans

Unsecured consumer loans

Loan portfolio (bar graph) and balance of loans delinquent over 90 days at three companies (line graph)

Combined total of JT Chinae Savings, Bank JT Savings Bank and JT Capital

Figures are displayed in local currency and multiplied by the following rate:

Reference rate：1 KRW＝0.0946 JPY (Closing rate as of December 31st, 2019)


17

18.0 17.3 17.3 18.0

24.423.7

22.821.8

29.030.3 29.9

3.3

2017/

03 06 09 12

2018/

03 06 09 12

2019/

03 06 09 12

単位：億円

17

Against the backdrop of a market surge, the company sold off 280 billion KRW (approximately 26.4 billion JPY)’s worth of assets.

TA Asset booked a full-year operating profit of 19.2 billion KRW

(approximately 1.8 billion JPY)

Balance of claimed receivables at TA Asset Management


Figures are displayed in local currency and multiplied by the following rate:

Reference rate: 1 KRW = 0.0946 JPY (Closing rate on December 31st, 2019)

Sold 26.4 billion yen inassets

18


２－３．Financial Business in Southeast Asia

Company names have been abbreviated in the following pages:

・ JTrust Bank Indonesia (BJI)

・ JTRUST OLYMPINDO MULTI FINANCE (JTO)

・ JTRUST INVESTMENTS INDONESIA (JTII)・ J Trust Royal Bank (JTRB)

19

Starting in the current fiscal year, Indonesia and Cambodia have been tallied together under Financial Business in Southeast Asia

Following the acquisition of shares in ANZ Royal Bank, both revenue and profit improved year-on-year

9.4 9.6

3Q FY03/2019 FY12/2019-14.3

-4.6

3Q FY03/2019 FY12/2019

Operating Revenue


Operating Profit

20Reference rate: 1 IDR ＝0.0079 JPY (Closing rate as of December 31st, 2019)

20

Starting in Q2, the Indonesian and Cambodian business segmentshave been tallied together.

FY12/2019 Total

Indonesia(Total of 3 companies)

Cambodia Transactionsbetween

segments, other (Goodwill, etc.)

Total for Financial

Business in Southeast Asia

BJIJTOJTII

JTRB

Operating revenue

8.4 billion JPY 1.7 billion JPY-0.5 billion

JPY9.6 billion

JPY

Operating profit

-7.4 billion JPY 0.3 billion JPY2.5 billion

JPY-4.6 billion

JPY

Summary by Country

Cambodia

• As a result of reevaluating JTRB’s net worth in Q3, J Trust booked 3.3 billion yen in gains from bargain purchases

• Operating profit came to 0.3 billion yen due to initial fees such as fees related to the transfer of the bank’s IT system

Indonesia• By the end of December 2019, we had completed the first stage of overhauling

BJI’s business foundation• Accumulated quality assets and promoted swift collections on NPLs at JTII

2121

(Indonesia) In FY12/2019, we focused on rebuilding BJI’s business foundation. In January 2020, BJI resumed share trading on the Indonesia Stock Exchange (IDX)

Personnel/Structural Reorganization

Organized risk management system and strengthened our screening division

・ Dispatched Japanese management to compliance and screening divisions

・ Dispatched talented individuals who had been involved in rebuilding savings banks in South Korea to Indonesia

Improvements to IT

Developed a mobile banking app and began service in August 2019

・ We anticipate reductions to COF through effective customer solicitation and accumulation of normal deposits

Maintenance of system for receivables collections

Combining the asset management and collection expertise cultivated in Japan and South Korea and focusing it in JTII

・ Increasing the number of receivables management and collections specialists （from 39 at end-March 2019 to 75 in end-December 2019)

Accumulation of good-quality assets

In addition to asset accumulation focused on JTO, we will further

invest in loans or bonds with Japanese/ state-run/conglomerate companies and major banks

2222

(BJI)

Processing of NPLs was successful; ratio of loans delinquent over 90 days decreased

Asset decrease has stopped; from now on, we will work on accumulating good-quality assets

78.4 75.869.2

59.7 58.6 56.7 56.0 54.5 51.948.6 47.9 49.1 49.9

6.59%

8.26%

5.62%

3.38% 3.21%3.74%

4.03%

5.11%

2.34%1.78% 1.77%

1.49%

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

8.00%

9.00%

10.00%

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

2019/

01 02 03 04 05 06 07 08 09 10 11 12

2020/

01


※ Figures are calculated in local currency and multiplied using the following rate:

Reference rate: 1 IDR＝0.0079 JPY (Closing rate as of December 31st, 2019)

Outstanding loan balance at BJI (Bar graph) and ratio of loans delinquent over 90 days (Line graph)

23

0.15

0.24

0.16

0.27

0.41 0.41 0.44

0.54 0.56

0.680.68

0.82 0.83

0.91

0.56

0.99

1.04

0.86

0.92 0.93

1.11

230

332

212

359

421 427

519

577 615

748 720

799

950

1,141

874

1,144 1,120

1,049 1,020

1,116

1,210

0

200

400

600

800

1,000

1,200

1,400

0.0

0.2

0.4

0.6

0.8

1.0

1.2

2018/

04 05 06 07 08 09 10 11 12

2019/

01 02 03 04 05 06 07 08 09 10 11 12

Loan amounts per month

New loans per month

23

（JTO) The number of business partners steadily increased, as did the amount of

new loans per month

Unit: Billions of yen Unit: Number of loans

Number of new loans (Right axis) and Loan Amounts (Left axis) at JTO

※ Figures are calculated in local currency and multiplied using the following rate:


Joined the J Trust Group in Oct. 2018

2424

(JTO) We maximized our joint finance scheme and increased assets. The NPL ratio declined even further as a result of stricter asset management

0.1

9.1 9.5

3.8 9.6 9.6 9.6 9.7 9.9 10.1 10.4 10.7 10.8 11.1

11.4 11.7 12.0 12.3

12.9

1.85%

1.25%

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

8.00%

9.00%

10.00%

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

2018/

10 11 12

2019/

01 02 03 04 05 06 07 08 09 10 11 12

Pre-existing JTO assets

Assets from joint finance

※ Figures calculated in local currency and multiplied by the following rate:


Assets at JTO (Bar graph) and Percentage of Loans Delinquent Over 90 Days (Line graph)


2525

(JTII) We will continue to collect on assets purchased from BJI

Unit: Billions of yen Unit: Billions of yen

11.2

14.6

23.7

34.2

37.5

45.3

0.03

0.06

0.10

0.12

0.17

0.00

0.02

0.04

0.06

0.08

0.10

0.12

0.14

0.16

0.18

0.20

2018/

04 05 06 07 08 09 10 11 12

2019/

01 02 03 04 05 06 07 08 09 10 11 12

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

50.0 Claimed receivables balance

Amount collected

Balance of claimed receivables（Bar graph: Left axis）and Actual amount of collections（Line graph：Right axis）at JTII


Reference rate: 1 IDR ＝0.0079 JPY (Closing rate as of December 31st, 2019)

2626

(JTRB) In Cambodia, where our Group has newly advanced, we actively promoted loans such as

secured small-lot loans, trade finance or corporate loans and increased the outstandingloan balance

17.4 16.7 18.9

14.5 12.1

13.7

3.4

5.9

16.2 16.5

17.6

48.1 48.7

56.0

0.0

10.0

20.0

30.0

40.0

50.0

60.0

2019/

01 02 03 04 05 06 07 08 09 10 11 12

Retail (housing) loan

Overseas loan (in riel)

Corporate loan

Trade finance


Outstanding loan balance at JTRB


Reference rate: 1 USD ＝109.56 JPY (Closing rate as of December 31st, 2019)

JTRB joined the J Trust Group

on August 19th, 2019

As of December 31st, thepercentage of NPLs delinquent

over 90 days is

0.6%

27


２－４．Investment Business

28

In FY03/2019, Investment Business saw significant losses due to provisions against potential loan losses against the full amount of money lent to Group Lease.

In FY12/2019, expenses related to litigation resulted in an operating loss.

0.7 0.7

3Q FY03/2019 FY12/2019

-20

-1.7

3Q FY03/2019 FY12/2019

Operating Revenue


Operating Profit

29


２－５．General Entertainment/Real Estate Business

30

(General Entertainment Business) Revenue increased as a result of business expansion through M&A

0.9

4.8

3Q FY03/2019 FY12/2019

-0 -0.1

3Q FY03/2019 FY12/2019

Operating Revenue


Operating Profit

31

(Real Estate Business) Revenue and profit increased year-on-year due to reductions to expenses and

700 million yen booked from gains on transfer of property

4.1

4.7

3Q FY03/2019 FY12/2019

0

0.8

3Q FY03/2019 FY12/2019

Operating Revenue


Operating Profit

32

５．FY12/2020 Results Forecast

33

Prior conditions assumed for determining consolidated results forecast

• J Trust adopts the average exchange rates from the time when the company entered the respective country until December 31st, 2019.

Furthermore, closing rates as of December 31st, 2019 are as follows:

• Figures for Investment Business do not reflect any gains or losses other than those which normally occur.

１SGD=81.07 JPY １IDR=0.0079 JPY １MNT=0.0397JPY

１KRW=0.0946 JPY １USD=109.56 JPY

１ SGD=82.31 JPY １IDR=0.0083 JPY １MNT=0.0426 JPY

１KRW=0.093 JPY １USD：107.42 JPY

34

We expect to accumulate a profit greater than FY12/2019

FY12/2019Results

2019/4/1~2019/12/31

FY12/2020Forecast

2020/1/1~2020/12/31

Difference

Operating Revenue58.1 billion

JPY86.5 billion

JPY+28.4 billion

JPY

Operating Profit 0.2 billion JPY 1.6 billion JPY+1.4 billion

JPY

Profit (or loss) before tax

-0.3 billion JPY

1.3 billion JPY+1.6 billion

JPY

Profit (or loss) -3.2 billion

JPY-1.6 billion JPY

+1.6 billion JPY

Consolidated Results (YOY)

3535

Results in FY12/2019 and Results Forecast for FY12/2020

Operating Revenue and Operating Profit by Segment

FY12/2019Results

2019/4/1~2019/12/31

FY12/2020Forecast

2020/1/1~12/31

Financial Business in JapanOperating Revenue 7.6 billion JPY 8.3 billion JPY

Operating Profit 3.0 billion JPY 2.9 billion JPY


Operating Revenue 29.5 billion JPY 38.8 billion JPY


Financial Business in Southeast AsiaOperating Revenue 9.6 billion JPY 21.6 billion JPY

Operating Profit -4.6 billion JPY -3.4 billion JPY

Investment BusinessOperating Revenue 0.7 billion JPY 0.9 billion JPY


Non-Financial Business (Entertainment and Real Estate)



Company-wide expenses/Consolidated adjustments, etc.



Consolidated Total

Operating Revenue

58.1 billion JPY 86.5 billion JPY

Operating Profit 0.2 billion JPY 1.6 billion PY

36

Future Growth Strategy

President, Representative Director and Chief Executive Officer

Nobuyoshi Fujisawa

3737

Growth Strategy for Three Main Pillars of Financial Business


Financial Business in South Korea and

Mongolia


• Promote collaborations with regional banks

• Diversification of guarantee products, such as crowdfunding guarantees

• Launch “Global Credit Card” for foreign residents in Japan

• Minimize default risk and pursue high profit rates

• Accumulate stable assets to handle further reductions to maximum

interest rates

• Indonesia: Foundational maintenance was completed in the previous

fiscal year in order to continue business

Accumulate good-quality assets and advance receivables collections

• Cambodia: Gradually expand our customer base and increase assets

3838

Nihon Hoshou: Further growth of credit guarantee business

Diversification of guarantee products

Up until now, our focus has been guarantees on loans issued by banks

In January 2020, Nihon Hoshou released three products. All reached their targets immediately.

Completed in20 min.

Completed in1 min.

Completed in50 min.

Loans for overseas properties which are popular among the wealthy class

From now on, increase product diversification and business partners

Work on guarantees for a variety of products

3939

Domestic Financial Business: J TRUST Card

Released the “J TRUST Global Card” for foreign residents on February 3rd

Opening up new markets

Issued a deposit card aimed at foreign workers and foreign exchange students

Payments can be made as long as they are within the deposited amount; increased handling fees through payment services are to be expected

Meets the needs of foreign workers who have difficulty receiving credit cards

Support available in eight languages

4040

Financial Business in South Korea:Continue to improve services and “quality” of assets

More fulfilling customer service

I.D. can be submitted through app when applying

Work performed by employees is more concise and efficient

Design updated along with new menu release

After revisions

Current application screen

• Adopt a UI (user interface) design ease of use and a unique design; make screen appear more user friendly

4141

JT Chinae Savings Bank won the First Brand Award five years in a row.

JT Chinae Savings Bank received the “Highest Customer Satisfaction Rank” in the Savings Bank Category.

In order to maintain its customer satisfaction rank, the company will continue to conduct in-house training on such issues as compliance.

4242

Financial Business in Southeast Asia: (Indonesia) The first stage of overhauling BJI`s business foundation has been completed;

from now on, we will speed up growth

From foundationalmaintenance to path

for growth

All issues indicated by Indonesian financial authorities (OJK) have been cleared (BJI)

Increasing retail assets through JTO

Accelerate loan offers for used automobiles and farm equipment by utilizing joint finance scheme

Further acceleration of receivables collection

Accumulation of good-quality assets

Introduce receivables collection expertise from Japan and South Korea and intensity collection abilities

Fortify the “Japan-Korea Linkage Division” and accumulate good-quality assets to communicate more with Japanese and other foreign-owned companies

Having completed the first stage of overhauling the business foundation, we will continue to promote accumulation of good-quality assets and receivables collections; we will aim to achieve a surplus quickly

4343

Financial Business in Southeast Asia (Indonesia) Building up loans through joint finance

Accumulate student loans through partnership with “Sawayaka Club”

Achieved success from sales of farm equipment loans, which were actively promoted since the previous year; a total of 700 units were sold

Increase assets with low risk of default; aim for a goal of 200 billion yen in 2023

Plan for accumulation of good-quality assets

49.1

110.8

135.6

166.5

202.1

2019/

12

2020/

12

2021/

12

2022/

12

2023/

12

Lending to blue chip

companies（BJI）

Lending through joint

finance（JTO）

Other


Reference rate: 1 IDR ＝0.0079 JPY (Closing rate as of December 31st, 2019)

A ceremony was held to commemorate JTO’s 500th sale of farm equipment loans in September 2019. The event was attended

by members of the local media.

Sawayaka Club Co. Ltd.’s school in Indonesia

New initiatives

4444

Cambodia: Double assets and revenue in three years through enlargement of customer targets

Enlarging assets

Up until now, ANZ Royal Bank has operated its business by exclusively targeting highly creditworthy customers

Maintain screening and compliance systems; aim for an average growth rate of 26% through swift action and investments with reasonable rates of return

0

2

4

6

8

10

12

14

2006 2008 2010 2012 2014 2016 2018 2020 2022

Projection for operating revenue


45

(General Entertainment Business) We have constructed a system which includes everything from content

development to comprehensive monetization

Merchandise

Music・Film(CD・DVD)

Live concert management

Film

Contents

Digital

Commercials

Productionstaff hiring

Talent agencymanagement

Athletes

Artists

TV programs

Idol schoolmanagement

Productdevelopment

Projectdevelopment

Games

Advertising

Theater management

EventPlanning &

management

Informationtransmission

Modelmanagement

4646

（General Entertainment Business) Novelbright

Their street performances were shared on social media such as TikTok and Twitter, earning them tremendous popularity particularly among teens.

Chosen by music industry insiders as the “Artists Most Likely To Make It Big in 2020”

Ranked No. 1 on music streaming sites such as Spotify and AWA

Their new song “Runner’s High” has been featured in online commercials for “Asahi Super Dry”’

©Zest,Inc.

47

Real Estate Business: Will expand business opportunities by utilizing the Act on Specified Joint Real Estate Ventures

Establishing a newrevenue base

Sold off single homes in Osaka and Yokohama by December 2019

From 2020 on, we will utilize the Act on Specified Joint Real Estate Ventures

and distribute investment earnings arising from real estate

From now onPreviously

We developed business focused on sales through single detached

homes.

Utilizing the Act on Specified Joint Real Estate Ventures, we will solicit investors through crowdfunding.

48

〇 If, depending on the defendants’ claim, the original convertible debenture agreement is valid, then...

The maturity date of the principal amount of 50 million USD will arrive on March 20th, 2020 ※1

22 million USD ※2 in interest is unpaid

Development of lawsuit against Group Lease Holdings Pte. Ltd.（GLH）

〇 The Court’s judgement was as follows:

① The loans extended by GLH to Cougar Pacific Pte Ltd and the incorporated Cyprus companies were ”undoubtedly unusual” and “suspicious”.

② After the funds were transferred to the borrowers, they were “passed through other companies before it was used to purchase shares in GL, (purchase of GL shares using the relevant funds) artificially increasing GL’s share value, and the shares were then put up as collateral for the loans”.

③ Stated that “the conduct of GLH and Mr. Konoshita may fall far short of the standards of good corporate governance”.

④ The Court also rejected the arguments by the defendants that the conduct of JTA was an abuse of process.

⑤ However, it took the view that JTA had not shown that GLH had crossed the threshold into dishonest intention, and thereby dismissed the claim by JTA that GLH and Mr. Konoshita had committed fraud and deceit

On February 12th , 2020, a judgement was rendered in regard to the lawsuit filed with the High Court of Singapore by JTrust Asia（JTA）

Reference Rate: 1 USD＝109.56 JPY (Closing rate as of December 31st, 2019)

※ For details, please view our latest release:

https://www.jt-corp.co.jp/en/news/

We have filed an appeal and maintain our Company’s position.

※ 1 Approximately 5.4 billion yen※ 2 Approximately 2.4 billion yen. The combined total of both the unpaid interest revenue

of 50 million USD and 130 million USD as of January 31st, 2020

49

Q & A Session

Earnings Presentation Materials · Earnings Presentation Materials FY12/2019 February 2020 J Trust Co., Ltd. 1 Table of Contents I. Consolidated Results in FY12/2019 1. Summary of

Documents