Message to Investors

We continue to embrace challenges and work to make J Trust a company that can meet the expectations of all stakeholders.

Managing Director, Executive Officer and General Manager of Finance Department
Ryuichi Atsuta

Thank you for your continued support.
Consolidated financial results for the March 2019 fiscal year ended in significant losses due to 13.0 billion yen in Financial Business in Southeast Asia that we set aside to process non-performing loans at J Trust Bank Indonesia as well as 20.1 billion yen in Investment Business for an allowance against potential losses that was booked to cover the full amount of lending to GL. Both instances were the results of handling foreseen risks ahead of time in anticipation of profit recovery from the December 2019 fiscal year onward.

During the December 2019 fiscal year, in Japanese financial business we will aim to generate a stable profit by further diversifying the products offered in our central business of credit guarantees such as crowdfunded projects and guarantees on overseas property-backed loans. In addition, we plan to continue booking profit stably in South Korea as well as Mongolia as we accumulate quality assets. In Southeast Asian financial business, we will move our business forward as in Indonesia we resolve one issue at a time and overhaul the internal structure of our bank to steadily achieve growth, while a Cambodian bank is scheduled to join the J Trust Group during the current fiscal year. We believe that this bank will contribute tremendously to our future growth strategy for Financial Business in Southeast Asia. As for general overseas business, we have been introduced to customers by regional Japanese financial institutions and there are an increasing number of projects in which we offer support by utilizing the Group's overseas network. We will decisively take advantage of these types of opportunities and aim for rapid restructuring and growth so that we can meet the expectations of all our stakeholders. Furthermore, starting this period we have decided to change our fiscal year end to December in order to align with that of our overseas subsidiaries. From now on, we will work even more to enhance the transparency of management through timely disclosures and accelerate business operations.

Always willing to embrace challenges, all of our executive and employees alike yearn to make J Trust a company that is capable of meeting our stakeholders' expectations. We kindly ask all stakeholders for their continued support.

July 2019