We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Register for real-time alerts, custom portfolio, and market movers
| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Takefuji Corp | LSE:TAK | London | Ordinary Share | JP3463200000 | COM STK JPY50 |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 1,534.38 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
Hot Features
Premium
TIDMTAK
RNS Number : 8456L
Takefuji Corporation
13 May 2010
(Translation)
Brief Statement of Financial Results
for the Fiscal Year Ended March 31, 2010
May 13, 2010
Company Name: TAKEFUJI CORPORATION (the "Company")
Stock Listings: Tokyo Stock Exchange, First Section/ London Stock Exchange
Code Number: 8564
URL: http://www.takefuji.co.jp/
Head Office: 15-1 Nishi-Shinjuku 8-chome, Shinjuku-ku, Tokyo 163-8654, Japan
Representative Personnel: Akira Kiyokawa, President
Administrative Personnel to Contact: Kentaro Itai, Director & Executive Officer
in charge of : Public Relations and Advertising Dept. as General Manager
Tel: +81-3-3365-8030
Scheduled date of the Ordinary General Meeting of the Shareholders: June 29,
2010
Scheduled date of payment of Year-End Dividends:June 30, 2010
Scheduled date for filing "YuHo" the report to Financial Services Agency: June
30, 2010
Note: Figures are rounded (as for "statistics per share" at three places of
decimal)
to the nearest appropriate unit.
1. Consolidated Business Results for the Fiscal Year Ended March 31, 2010 (From
April 1, 2009 to March 31, 2010)
(1) Consolidated Operating Results
+----------------+----------+---+-------+-------+--+-----+---+------+----+----------+---------+---+
| | Note: The percentage figures for operating |
| | revenues, operating income, |
| | ordinary income and net income represent |
| | year-on-year changes. |
| | The negative figures are losses. |
+---------------------------------------+---------------------------------------------------------+
| | Operating | Operating | Ordinary | Net Income | |
| | Revenues | Income | Income | | |
+----------------+----------------------+----------------+---------------+--------------------+---+
| |millions | % |millions | % |millions | % |millions | % | |
| | of yen | | of yen | | of yen | | of yen | | |
+----------------+----------+-----------+----------+-----+----------+----+----------+---------+---+
| Fiscal Year | 120,266 | (-35.5) | 33,360 |( - | 33,180 | ( | 4,577 | ( - ) | |
| Ended March | | | | ) | | - | | | |
| 2010 | | | | | | ) | | | |
+----------------+----------+-----------+----------+-----+----------+----+----------+---------+---+
| Fiscal Year | 186,349 | (-31.1) |-210,612 |( - |-214,669 | ( |-256,137 | ( - ) | |
| Ended March | | | | ) | | - | | | |
| 2009 | | | | | | ) | | | |
+----------------+----------+-----------+----------+-----+----------+----+----------+---------+---+
| | | |
+---------------------------------------+-----------------------------------------------------+---+
| | Net | Net | Return on | Ratio of | Ratio of | |
| | Income | Income | Equity | Ordinary | Operating | |
| | per | per | |Income to | Income to | |
| | Share | Share-Diluted | | Total | Operating | |
| | | | | Assets | Rvenues | |
+----------------+--------------+---------------+------------+-----------+--------------------+---+
| | yen | yen | % | % | % | |
| | | | | | | |
+----------------+--------------+---------------+------------+-----------+--------------------+---+
| Fiscal Year | 33.93 | 31.79 | 3.1 | 4.0 | 27.7 | |
| Ended March | | | | | | |
| 2010 | | | | | | |
+----------------+--------------+---------------+------------+-----------+--------------------+---+
| Fiscal Year | -1,880.05 | - | -87.8 | -18.3 | -113.0 | |
| Ended March | | | | | | |
| 2009 | | | | | | |
+----------------+--------------+---------------+------------+-----------+--------------------+---+
| | | | | | | | | | | | | |
+----------------+----------+---+-------+-------+--+-----+---+------+----+----------+---------+---+
Note: Equity in net income or loss of the companies under equity method:
+------------------+----+------------+
| Fiscal Year | -1 | millions |
| ended March 2010 | | of yen |
+------------------+----+------------+
| Fiscal Year | - | millions |
| ended March 2009 | | of yen |
+------------------+----+------------+
(2) Consolidated Financial Position
+---------------+------------+------------+---------------+------------+
| | Total |Net Assets |Shareholders' |Net Assets |
| | Assets | | Equity Ratio | per Share |
+---------------+------------+------------+---------------+------------+
| | millions | millions | % | yen |
| | of yen | of yen | | |
+---------------+------------+------------+---------------+------------+
| Fiscal Year | 686,931 | 150,620 | 21.9 | 1,114.87 |
| Ended March | | | | |
| 2010 | | | | |
+---------------+------------+------------+---------------+------------+
| Fiscal Year | 958,464 | 149,648 | 15.6 | 1,108.12 |
| Ended March | | | | |
| 2009 | | | | |
+---------------+------------+------------+---------------+------------+
Note: Shareholders' equity
+------------------+---------+------------------+
| Fiscal Year | 150,417 | millions of yen |
| ended March 2010 | | |
+------------------+---------+------------------+
| Fiscal Year | 149,507 | millions of yen |
| ended March 2009 | | |
+------------------+---------+------------------+
(3) Consolidated Cash Flows
+---------------+------------+------------+------------+-------------+
| | Operating | Investing | Financing | Cash and |
| |Cash Flows |Cash Flows |Cash Flows | Cash |
| | | | | Equivalents |
| | | | | as of the |
| | | | | end of the |
| | | | | Fiscal Year |
+---------------+------------+------------+------------+-------------+
| | millions | millions | millions | millions |
| | of yen | of yen | of yen | of yen |
+---------------+------------+------------+------------+-------------+
| Fiscal Year | 109,005 | 5,672 | -151,096 | 60,361 |
| Ended March | | | | |
| 2010 | | | | |
+---------------+------------+------------+------------+-------------+
| Fiscal Year | 150,020 | -2,110 | -203,193 | 97,862 |
| Ended March | | | | |
| 2009 | | | | |
+---------------+------------+------------+------------+-------------+
2. Dividends
+-----------------+---------+-----------+--------+----------+---------+-----------+---------+----------+
| | Dividends per Share | Total | Payout | Ratio |
| | | of | Ratio | of |
| | |Dividends | |Dividend |
| | | (full | | to Net |
| | | year) | | Assets |
+-----------------+---------------------------------------------------+ + + +
| | First | | | | Second | Third | Fourth | Total |
| |Quarter | | | |Quarter | Quarter |Quarter | |
+-----------------+---------+-----------+--------+----------+---------+-----------+---------+----------+
| | yen | yen | Yen | yen | yen | millions | % | % |
| | | | | | | of yen | | |
+-----------------+---------+-----------+--------+----------+---------+-----------+---------+----------+
| Fiscal Year | - | 30.00 | - | 20.00 | 50.00 | 6,774 | - | 2.3 |
| Ended March | | | | | | | | |
| 2009 | | | | | | | | |
+-----------------+---------+-----------+--------+----------+---------+-----------+---------+----------+
| Fiscal Year | - | 15.00 | - | 15.00 | 30.00 | 4,048 | 88.4 | 2.7 |
| Ended March | | | | | | | | |
| 2010 | | | | | | | | |
+-----------------+---------+-----------+--------+----------+---------+-----------+---------+----------+
| Fiscal Year | - | - | - | - | - | | - | |
| Ended | | | | | | | | |
| March | | | | | | | | |
| 2011(Forecasts) | | | | | | | | |
+-----------------+---------+-----------+--------+----------+---------+-----------+---------+----------+
Note: Dividends for the next fiscal year ending March 2011 is not decided as of
now.
3. Forecasts of Consolidated Operating Results for the Fiscal Year Ending March
31, 2011 (From April 1, 2010 to March 31, 2011)
Note: The percentage figures show year-on-year changes.
The negative figures are losses.
+--------+----------+--------+----------+---------+----------+---------+----------+---------+--------+
| | Operating | Operating | Ordinary | Net Income | Net |
| | Revenues | Income | Income | |Income |
| | | | | | per |
| | | | | | Share |
+--------+-------------------+--------------------+--------------------+--------------------+--------+
| |millions | % |millions | % |millions | % |millions | % | yen |
| | of yen | | of yen | | of yen | | of yen | | |
+--------+----------+--------+----------+---------+----------+---------+----------+---------+--------+
| First | 38,300 |(-42.2 | 11,500 |(-37.4) | 11,500 |(-34.7) | 13,900 |(-18.1) | 103.02 |
| Six | | ) | | | | | | | |
|Months | | | | | | | | | |
+--------+----------+--------+----------+---------+----------+---------+----------+---------+--------+
| Full | 64,000 |(-46.8 | 7,700 |(-76.9) | 7,700 |(-76.8) | 9,900 |(116.3) | 73.38 |
| Year | | ) | | | | | | | |
+--------+----------+--------+----------+---------+----------+---------+----------+---------+--------+
4. Others
(1) Changes of significant subsidiaries during the fiscal year (Changes in Scope
of Consolidation): None
(2) Accounting change for consolidated financial statements (Significant
Accounting Policies for Consolidated Financial Statements)
a. Changes in accordance with revision of accounting standard: Yes
b. Other than a. : None
(Refer to the detail on page 32 of "Changes in Significant Accounting
Policies for Consolidated Financial Statements".)
(3) Number of shares issued (common stock):
a. Number of shares issued at the end of fiscal year (including treasury
stock):
+--------------------+-------------+----------+
| Fiscal Year ended | 144,295,200 | Shares |
| March 2010 | | |
+--------------------+-------------+----------+
| Fiscal Year ended | 144,295,200 | Shares |
| March 2009 | | |
+--------------------+-------------+----------+
b. Treasury stocks at the end of fiscal year:
+--------------------+-----------+----------+
| Fiscal Year ended | 9,375,413 | Shares |
| March 2010 | | |
+--------------------+-----------+----------+
| Fiscal Year ended | 9,375,385 | Shares |
| March 2009 | | |
+--------------------+-----------+----------+
| | | |
+--------------------+-----------+----------+
(Refer to the detail on page 56 of "Footnotes to Statistics per Share".)
Reference
Financial Results for the Fiscal Year Ended March 31, 2010 (Non-Consolidated)
1. Non-Consolidated Business Results for the Fiscal Year Ended March 31,
2010 (From April 1, 2009 to March 31, 2010)
(1) Non-Consolidated Operating Results
+---------------+---------+----+----+-------+--+-+----+----------+-----+----------+----------+
| | Note: The percentage figures for |
| | operating revenues, operating income, |
| | ordinary income and net income |
| | represent year-on-year changes. |
+-------------------------------------------+------------------------------------------------+
| | Operating | Operating | Ordinary | Net Income |
| | Revenues | Income | Income | |
+---------------+-------------------+-----------------+----------------+---------------------+
| | millions | % | millions | % | millions | % | millions | % |
| | of yen | | of yen | | of yen | | of yen | |
+---------------+--------------+----+------------+----+----------+-----+----------+----------+
| Fiscal Year | 119,403 | (-35.6) | 32,388 | (-) | 32,295 | (-) | 7,595 | (-) |
| Ended March | | | | | | | | |
| 2010 | | | | | | | | |
+---------------+---------+---------+----------+------+----------+-----+----------+----------+
| Fiscal Year | 185,443 | (-31.2) | -211,611 | (-) | -215,740 | (-) | -256,933 | (-) |
| Ended March | | | | | | | | |
| 2009 | | | | | | | | |
+---------------+---------+---------+----------+------+----------+-----+----------+----------+
| | | | | | | | | | | | |
+---------------+---------+----+----+-------+--+-+----+----------+-----+----------+----------+
+--------------+------------+---------------+
| |Net Income | Net Income |
| | per Share | per |
| | |Share-Diluted |
+--------------+------------+---------------+
| | yen | yen |
+--------------+------------+---------------+
| Fiscal Year | 56.29 | 50.47 |
| Ended March | | |
| 2010 | | |
+--------------+------------+---------------+
| Fiscal Year | -1,885.90 | - |
| Ended March | | |
| 2009 | | |
+--------------+------------+---------------+
(2) Non-Consolidated Financial Position
+--------------+------------+------------+---------------+-----------+
| | Total |Net Assets |Shareholders' | Net |
| | Assets | | Equity Ratio | Assets |
| | | | |per Share |
+--------------+------------+------------+---------------+-----------+
| | millions | millions | % | yen |
| | of yen | of yen | | |
+--------------+------------+------------+---------------+-----------+
| Fiscal Year | 712,571 | 148,687 | 20.8 | 1,100.54 |
| Ended March | | | | |
| 2010 | | | | |
+--------------+------------+------------+---------------+-----------+
| Fiscal Year | 977,092 | 144,659 | 14.8 | 1,071.14 |
| Ended March | | | | |
| 2009 | | | | |
+--------------+------------+------------+---------------+-----------+
Note: Shareholders' equity
+------------------+---------+----------+
| Fiscal Year | 148,485 | millions |
| ended March 2010 | | of yen |
+------------------+---------+----------+
| Fiscal Year | 144,518 | millions |
| ended March 2009 | | of yen |
+------------------+---------+----------+
2. Non-Consolidated Forecast for the Fiscal Year Ending March 31, 2011 (From
April 1, 2010 to March 31, 2011) Note: The
percentage figures show against corresponding previous period.
+--------+----------+--------+----------+---------+----------+---------+----------+----------+--------+
| | Operating | Operating | Ordinary | Net Income | Net |
| | Revenues | Income | Income | |Income |
| | | | | | per |
| | | | | | Share |
+--------+-------------------+--------------------+--------------------+---------------------+--------+
| |millions | % |millions | % |millions | % |millions | % | yen |
| | of yen | | of yen | | of yen | | of yen | | |
+--------+----------+--------+----------+---------+----------+---------+----------+----------+--------+
| First | 38,100 |(-42.1 | 11,100 |(-38.0) | 11,100 |(-35.5) | 13,600 | (-18.6 | 100.80 |
| Six | | ) | | | | | | ) | |
|Months | | | | | | | | | |
+--------+----------+--------+----------+---------+----------+---------+----------+----------+--------+
| Full | 63,600 |(-46.7 | 6,900 |(-78.7) | 7,000 |(-78.3) | 9,300 |( 22.4 ) | 68.93 |
| Year | | ) | | | | | | | |
+--------+----------+--------+----------+---------+----------+---------+----------+----------+--------+
1. Business Performance
(1) Analysis of business performance
1) Business performance of the current consolidated fiscal year
During the consolidated fiscal year under review, amid a global financial
downturn that began two years ago, Japan's economy started to show signs of
recovery. Nonetheless, conditions remained difficult, with a consumption
downturn caused by a severe employment and income environment slowing the pace
of any recovery.
In the consumer finance industry, each company is seeking ways to ensure
profitability just prior to the full introduction of the revised Money Lending
Business Law, which will impose aggregate debt control and lower the maximum
legal lending rate. Companies have also been facing a severe financing
environment, and the situation remains unpredictable with bankruptcies and
closures continuing at the same pace.
In this environment, TAKEFUJI CORPORATION and its subsidiaries ("the Group"),
in the first year of the Medium-Term Business Plan adopted in the previous year,
have been taking steps to improve asset quality and undertake organizational
reforms to achieve stable earnings and boost retained earnings. Despite these
efforts, the Company's rating was downgraded as the number of interest refund
claims remained high and uncertainty surrounded the impact of the full
enforcement of revised Money Lending Business Law. As a result, it has become
increasingly important to secure liquidity in hand. To do this and ensure sound
business activities, we have introduced stricter lending criteria ahead of
schedule to respond to the full enforcement of the revised Money Lending
Business Law, improved cash flow by controlling the amount of cash loans, and
raised funds through the sale of assets, such as our loan portfolio.
The Company has also been focused on practicing its founding philosophy of
"Customer First," to provide customers with secure and reassuring services. As
part of this effort, we launched a product with a new interest rate of 6.5% per
annum as the benecere Black Plan, part of our benecere brand products, to
provide a more attractive card brand. In addition, our ATM tie-up with AEON
BANK, Ltd. has enabled customers to borrow money or make repayments at AEON BANK
ATMs, for even greater convenience.
Moreover, the full enforcement of Money Lending Business Law will require that
services to customers be provided with a precise understanding and
interpretation of the laws and regulations. In response, we took comprehensive
steps to qualify employees as managers for money lending operations. As a
result, more than 1,300 of the Company's employees passed the qualifying test,
and this has enabled us to strengthen and enhance our compliance system.
As a result of these initiatives, the balance of direct cash loans to
customers at the end of the year was 589,477 million yen (down 31.6% from the
previous consolidated year-end) and the number of customer accounts stood at
1,079,000 (down 27.2%).
Herewith operating revenues on a consolidated basis for the current fiscal year
amounted to 120,266 million yen (decreased by 35.5% from the previous
consolidated fiscal year), while operating income was 33,360 million yen
(210,612 million yen of operating loss for the previous consolidated fiscal
year), ordinary income was 33,180 million yen (214,669 million yen of ordinary
loss previously) and net income was 4,577 million yen (256,137 million yen of
net loss previously).
As of March 31, 2010, the Company operated a network of 140 manned branch
offices (210 at the previous consolidated year-end), 645 unmanned offices (840
previously), one internet shop (one previously), 873 owned ATMs (1,161
previously), and 57,067 inter-linked CDs and ATMs (53,743 previously).
2) Forecasts for operations in fiscal 2011
Although the business environment is expected to remain difficult and uncertain
given the impact of the full enforcement of Money Lending Business Law and the
trend in the number of interest refund claims, the Group will strive to ensure
highly efficient management by giving top priority on securing the liquidity in
hand. The Company is united in its determination to overcome the management
challenges.
The forecasts for the consolidated fiscal year ending March 31, 2011 are as
follows;
Operating revenues are expected to be 64 billion yen (down by 46.8% from the
previous year-end), Operating income is expected to be 7.7 billion yen(down
76.9%), Ordinary income is expected to be 7.7 billion yen(down 76.8%) and Net
income is expected to be 9.9 billion yen.(up 116.3%)
(2) Analysis of financial condition
Assets at the end of the current consolidated fiscal year were 686,931 million
yen (down 28.3% from the previous consolidated year-end) with total assets
decreased by 271,533 million yen from the end of previous consolidated fiscal
year, due to the decrease of direct cash loans to customers (272,040 million
yen), the decrease of short-term loans receivable related to asset management in
repurchase transaction (30,003 million yen), the decrease of land (9,434 million
yen) for impairment etc.
Liabilities were 536,311 million yen (down 33.7% from the previous
consolidated year-end) decreased by 272,505 million yen from the end of the
previous consolidated fiscal year, due to the decrease of allowance for losses
for refund of interest received from customers (130,404 million yen) as we
responded to interest refund claims, the decrease of long-term borrowings
(115,541 million yen), the decrease of convertible bond-type bonds with
subscription rights to shares (27,600 million yen) despite an increasing factor
of recording expected loss stemmed from transfer of loans receivables as
allowance for loss on transfer of receivables (11,276 million yen).
Net assets were 150,620 million yen (up 0.6% from the previous consolidated
year-end), increased by 972 million yen from the end of the previous
consolidated fiscal year due to 998 million yen of increase in valuation
difference on available-for-sale securities from -1,943 million yen to -945
million yen
(The situation of consolidated cash flows)
Cash and cash equivalent at the end of the fiscal under review on a
consolidated basis (the "Funds") was 60,361 million yen, down 37,501 million yen
compared to that of the end of the previous consolidated fiscal year.
Each cash flow situation and factors were as follows:
(Net cash provided by operating activities)
The Funds provided by operating activities were 109,005 million yen (150,020
million yen was provided in the previous year's same period). The principal
sources of these cash flows were as follows; 58,746 million yen (previously
174,297 million yen) for direct cash loans made to customers and 194,100 million
yen (previously 296,271 million yen) for direct cash loans collected from
customers, based on our core business of consumer finance.
(Net cash provided by investing activities)
The Funds provided by investing activities were 5,672 million yen (2,110
million yen was used in the previous year's same period). The principal sources
of these cash flows were as follows; 1,896 million yen (previously 3,717 million
yen) for purchase of tangible and intangible fixed assets, and 6,210 million yen
(previously 1,499 million yen) for gain on sales of investment securities.
(Net cash used in financing activities)
The Funds used in financing activities were 151,096 million yen (203,193
million yen was used in the previous year's same period). The principal sources
of these cash flows were as follows; 126,730 million yen (previously 177,306
million yen) for repayment of long-term borrowings, 19,646 million yen
(previously 82,400 million yen) for redemption of bonds, including convertible
bond-type bonds with subscription rights to shares and 4,720 million yen
(previously 16,461 million yen) for cash dividends paid.
(3) Basic policy of profit distribution and dividends of the current and next
fiscal year
The Group considers the return of profits to shareholders as the most
important issue for management and its basic policy is to consistently return
profits and meet the expectations of shareholders.
We will utilize retained earnings effectively and boost earnings to establish
robust business foundations that can cope with future changes in the consumer
finance market.
In line with this policy, second-quarter dividends of 15 yen per share were
paid. With fourth-quarter dividends of 15 yen per share, full-year dividends of
30 yen are planned for the current fiscal year ended March 2010.
Dividends for the fiscal year ending March 2011 are not decided as of now
because it is necessary to examine the impact of full enforcement of the Money
Lending Business Law in the current severe situation of the business management.
Planned amount will be promptly disclosed when possible.
(4) Business Risk and Other Forms of Risk
This section concerns the major business risks that the Group confronts and that
could potentially have a significant impact on results, the stock price and the
financial position of the Group. It also includes other risks that are regarded
as important to the investment decisions made by investors, for better
information disclosure to investors. The Group is fully aware of these possible
risks and will make its best possible efforts to hedge them or to respond to
them if they transpire.
This section contains some future projections, which are based on forecasts as
of the date this material was prepared.
1) Legal regulations
1. The Money Lending Business Law
To engage in its principal business, namely consumer finance, the Company is
registered as a moneylender as provided by the Money Lending Business Law,
regulation for loan business in Japan. Takefuji is required to comply with the
regulations set out in that law encompassing all consumer finance business.
These regulations include those covering the prohibition of excessive lending,
the indication of loan terms, the advertising of loan terms, the prohibition of
exaggerated advertisements, the issuance of document when concluding contracts,
the delivery of receipts, the provision of account books, restrictions on
designated notarial deeds, the regulation of loan collection, the return of loan
contract, the display of signs, transfers of claims and others. In addition, the
enforcement provisions of the Money Lending Business Law require Takefuji to
conduct business mindful of the Comprehensive Supervisory Guidelines for Loan
Providers and the JFSA Self-regulatory Basic Rules Regarding the Conduct of
Money Lending Business Operations.
Deeming compliance to be its most important managerial challenge, we are working
to build a highly effective compliance framework that will bolster its
compliance by changing its organizational structure, offering education to
employees, and creating a system with a self-correcting effect. However, in case
that a part of Takefuji Group fails to comply with the Money Lending Business
Law, it will not merely face administrative sanctions or penalties; its
financial position and business results may be undermined by the infringement.
Following promulgation of the Amendment of the Money Lending Business Control
and Regulation Law on December 20, 2006, the amendment is being enforced in four
phases from the enforcement of Article 1 to the enforcement of Article 4.
Article 1, which increases the penalty for unregistered operations (tightening
of anti loan-shark measures), was enforced on January 20, 2007, one month after
promulgation.
Next, Article 2, which was enforced on December 19, 2007, one year after
promulgation, changed the name of the law from the Money Lending Business
Control and Regulation Law to the Money Lending Business Law and the main points
of the amendment are that it strengthens administrative measures including the
establishment of business improvement orders, tightens regulation of
solicitation, tightens regulation of collection activities, expands the scope of
prohibited activities, provides for the establishment of the new Japan Financial
Services Agency and the formulation of self-regulatory rules and makes it
obligatory to agree to the browsing of accounts.
On "business improvement orders" the amendment states that in connection with
the conduct of business by lenders, if considered necessary to protect the
interest of borrowers, etc., the supervisory authorities may, to the extent
necessary, order a change in business method or other measures necessary for
improvement of business conduct, and there is the possibility that such business
improvement orders will be issued with greater flexibility than the business
suspension orders which have been available prior to the amendment. Furthermore,
the new Japan Financial Services Association (JFSA) is a powerful
self-regulatory body that has been granted the authority to investigate and
supervise its members and considerable discretionary authority in order to
increase the effectiveness of self-regulatory rules. The Company was imposed a
"business improvement order" by the Kanto Regional Finance Bureau on the basis
of Article 24, 6-3 of Money Lending Business Law (No. 32 Law of 1983) related to
the provision of account books and the delivery of receipts on May 16, 2008.
With the enforcement of Article 3 on June 19, 2008, measures such as the
establishment of credit information agencies and the creation of a new money
lending business manager system were implemented.
Then, with the enforcement of Article 4, the deadline for which comes in June
2010, regulations such as the lowering of the maximum legal lending rate and the
introduction of aggregate debt control (explained later in 2. Risks associated
with the regulation of loan interest rates and the aggregate debt control) will
be implemented.
In light of the amendments outlined above, Takefuji is conducting a review of
its lending criteria,
but there is a possibility that these amendments may seriously affect the number
of new loan customer accounts, direct cash loans to customers, and operating
revenues.
As a result of the phased implementation of the Money Lending Business Law,
the Company will be subject to more extensive regulations than before. As a
consequence, it is now taking steps in areas such as its account books, work
flow and information systems, although these amendments may affect the Company's
performance.
2. Risks associated with the regulation of loan interest rates and the aggregate
debt control
The maximum cash loan interest rate under the Law Concerning the Regulation of
Receiving of Capital Subscription, Deposits and Interest on Deposits ("Capital
Subscription Law") is set at 29.2%. Since February 1, 1996, Takefuji fixed its
maximum loan interest rate at 27.375%. Although the Interest Rate Restriction
Law stipulates that a contract on interest on a loan for consumption that
exceeds 20% per annum when the principal is less than 100,000 yen, 18% per annum
when the principal is 100,000 yen or more but less than 1,000,000 yen, and 15%
per annum when the principal is 1,000,000 yen or more shall be invalid, the
repayment of interest by a debtor that exceeds the interest stipulated in the
Interest Rate Restriction Law is regarded as valid if the predetermined
requirements provided in Article 43 of the Money Lending Business Control and
Regulation Law are fulfilled.
However, the Bill for the Amendment of the Money Lending Business Control and
Regulation Law passed the 165th extraordinary session of the Diet in 2006. When
the Money Lending Business Law comes into full effect, which is scheduled to
take place by June 2010, the maximum lending rate under the Capital Subscription
Law will be lowered from the current 29.2% per annum to 20%. Also, money lenders
will be prohibited from entering into any contract on interest that exceeds
those stipulated in the Interest Rate Restriction Law. Similarly, the amendment
on the aggregate debt control, which is due to be adopted upon the full
enforcement of the Money Lending Business Law, states that if the balance of
lending exceeds one third of the borrower's annual income, the borrower shall be
considered to have exceeded his or her repayment ability and, as a general rule,
the lender may not extend any further loans.
From a compliance perspective, Takefuji has lowered the maximum lending rate and
adopted the debt control as outlined above ahead of schedule, in anticipation of
the full enforcement of the Money Lending Business Law and this may have a
serious impact on the Company's performance.
3. Impact of the Financial Instruments and Exchange Law (the construction of an
internal control, etc.)
The bill for the "Amendment of the Securities and Exchange Law" (the name of the
Law was changed to the Financial Instruments and Exchange Law) became law on
June 7, 2006 and published on June 14, 2006. This amended Law obliges listed
companies to submit an Internal Control Report that evaluates the effectiveness
of internal controls in each fiscal year to ensure the credibility of financial
reporting, and this Report must receive an audit certificate from a certified
public accountant or an audit corporation. This system will apply to the fiscal
year that will begin on April 1, 2008. Takefuji Group will also be required to
submit this Report from the fiscal year ended March 31, 2009.
Also, in the event that a qualified opinion, etc. is attached because of a
defect, etc. in the internal control of Takefuji Group as a result of an audit
of the internal control by a certified public accountant or an audit
corporation, the results of the Group could be impacted by a decline in the
evaluation or corporate image of the Company in the market, etc.
4. Impact of the Law Concerning the Protection of Personal Information
As the Law Concerning the Protection of Personal Information ("Personal
Information Protection Law") came into full effect on April 1, 2005, Takefuji
has set out and now implements internal rules in accordance with the Personal
Information Protection Law, the Guidelines for Personal Information Protection
in the Financial Field, and the Practical Guidance on Safety Control Measures
and Such like under the Guidelines for Personal Information Protection in the
Financial Field. However, should any of such information be leaked, the Company
would be obliged to notify the affected borrowers as well as the competent
authorities and make a public announcement as prevention of secondary damage.
This may result in a loss of public confidence, compensation payable to
individuals, and penalties affecting business.
5. Impact of other business-related laws
For its card business, Takefuji is subject to the Specific Commercial
Transactions Law and the Installment Sales Law and various regulations pursuant
to the law, including the indication of terms of business, the issuance of
document, the provision of account books, and the prevention of purchases
exceeding the capacity for payment. Especially, in case that a customer has a
plea against the dealer for specified products or specified rights related to
plea against credit card issuers, with the plea, there is a possibility that the
customer may stop paying to credit card issuer or may be exempt from paying. If
many of such cases occur, it may affect the Group's results.
Other than the above, the business of Takefuji is subject to various laws,
including the Civil Rehabilitation Law, the Bankruptcy Law, the Judicial
Scrivener Law, laws related to special conciliation and amendments to any
relevant law or the enforcement of a new law may affect earnings of the Group.
2) Risks associated with claims for refund of interest received from customers
Takefuji's loan interest rates in part exceed the upper limit for interest rates
prescribed by Article 1, Paragraph 1 of the Interest Rate Restriction Law.
Defense in the case of a claim for the refund of interest received from
customers has become extremely difficult, but presently the number of cases of
interest refund claims is remaining at the same level as before.
3) Fund procurement and interest rates of funds procured
1. Risk related to reduction of ratings
On March 25, 2010, Moody's downgraded the Company's rating from Caa1 to Caa2.
Takefuji has a CCC- rating from Standard & Poor's. No loan will be affected by
the downgrade by Moody's.
With respect to the true sale loan we started with Bull Capital Co., Ltd. in
July 2005, which amounts to 58,530 million yen (as of March 31, 2010), the
downgrade became the reason for early repayment in the current first quarter.
However, we later conducted several negotiations concerning changes of contract
terms, etc. and reached an agreement on certain issues.
We have no other loan payable with rating-related conditions. A future
downgrading of our ratings may have an impact on the Company's ability to
procure funds.
2. Restrictive financial covenant on fund procurement
Some of the funds raised by the Company by means of loans and corporate bond
issues are subject to certain limits under the restrictive financial covenants.
Loss of benefit of time will result in the lump-sum repayment of the whole
amount.
3. Risk related to fluctuation of interest rates on fund procurement
Borrowing rates may vary because of the market environment and other factors and
the rise in funding rate makes flexible funding difficult and may affect
results. Moreover when interest rate of The Capital Subscription Law becomes 20%
in accordance with enactment of revised Money Lending Business Law, it may
affect results.
4) The problem of people with excessive debts
If there is an increase in incidences of personal bankruptcy, personal civil
rehabilitation, special conciliation, debt arrangements by attorneys,
uncollectible loans such as cases of petitions for refunds of improper profits,
or loans overdue for long periods, and the cost of bad debts rises, Takefuji
Group's business results may be impacted.
5) Transition of operating results
The Group has invested in "en Musubi" automatic contract machines and ATMs
for efficient management and promoted enhancing non-face-to-face channels such
as via Internet and free call center for customer convenience.
However, the global financial crisis originated from sub-prime mortgage issue in
the U.S.A. now influences real economy and the environment surrounding the
consumer is rapidly deteriorating, such as deterioration of employment
situations and decrease of income. This deterioration in the environment
surrounding consumers could possibly have a drastic influence to the Group's
operation. Also, with expenses for losses for refund of interest received from
customers and stricter standard of allowance for the expenses, business
environment surrounding the Group is expected to enter a more severe phase.
Changes in the number of customers, cash loans to customers, credit
expenses, expenses for losses for refund of interest received from customers and
other items may have an impact on the group's operating results.
1. Risks associated with economic trends
Japan's economy in the current consolidated fiscal year has been
continuously at a low level. Corporate earnings have worsened due to slow
international and domestic demands and the severe environment surrounding
consumers, including large scale bankruptcy of companies, deteriorated
employment situations and decrease of income, is continuing.
2. Risk of growth in write-offs of bad debts
It has been believed that the number of personal bankruptcy influences the
number of write-offs. According to a study by the Supreme Court, the number of
personal bankruptcy peaked in 2003 at 242,000 and a downward trend has been
observed every year, as the number was 211,000 in 2004, 184,000 in 2005, 166,000
in 2006, 148,000 in 2007 and 129,000 in 2008 and 126,000 in 2009. However,
because the reasons of this downward trend include an increase in claims for
refund of interest paid with voluntary liquidation and in use of debt
arrangements such as civil rehabilitation etc., and it is hard to assume that
the trend will result in decrease of write-offs of bad debts.
Deterioration of corporate performance is significantly impacting household
financial conditions. As a result, there is a possibility that the write-offs
of bad debts may increase and impact the Group's business results.
3. Risk concerning market competition
Pursuant to the amended Money Lending Business Control and Regulation Law
enacted in December 2006, the maximum lending rate under the Capital
Subscription Law is set to be lowered by June 2010 and the so-called aggregate
debt control will be introduced. It is anticipated that this move will drive the
industry from a conventional state of coexistence based on a differentiation of
lending rate ranges for borrowers into a state of competition with
bank-affiliated money lenders, credit card operators, and credit sales companies
within the same interest rate range, and that the race for customers will
intensify. As a consequence, the results of Takefuji Group could be influenced
by this competition, depending on the actions of its competitors, including not
only those specialized in consumer finance business but also bank-affiliated
money lenders, credit card operators, and credit sales companies.
4. Risks associated with the concentration of businesses
Most of Takefuji Group's operating revenues come from the consumer finance
business, and it accounts for approximately 97.6% of consolidated operating
revenues. If operating revenues declines significantly in the future with a
legislative amendment, change to accounting standards or other factors in the
consumer finance industry, the results of the Takefuji Group may be affected.
6) Disruptions and malfunctions in information network systems, internet service
and other technology-based systems
1. Fires and natural disasters
The Company has completed work on its computer system to enable all facilities
to withstand a level 7 earthquake tremor. In the event of a natural disaster,
the Company does not own a back-up center that could take over computer
operations.
Consequently, even in the event of a major Tokai region earthquake (level 5
tremor in the Tokyo area), the Company believes there would be no major
disruption to its computer system. However, the computer system may cease to
operate if the computer center building sustains major damage in a fire. In this
event, the Company would conduct operations in a different manner for
approximately 2 to 3 months. This could have a substantial impact on the level
of service.
2. Protection of customer data
The Company centralizes the administration of customer data in its main
computer. Users are authorized to operate this only when and while necessary.
This authorization requires prior application and approval and audit on access
results, whether the operation was authorized or not, is conducted daily by
another person.
In addition, input or output device for external storage device cannot be used
from PCs etc. and audits are performed for devices brought in, added or
recording to external storage device.
Moreover, all incoming and outgoing e-mail messages are inspected.
Consequently, the Company believes there is only a very small risk that customer
information could be leaked to an external party. If such a leak did occur for
whatever reason, there could be a significant impact on the Company's operating
results because of the resulting loss in the public's trust in the Company.
3. Damage resulting from computer viruses
To limit and prevent damage from computer viruses, Takefuji Group installs and
updates anti-virus software periodically as well as at other times as necessary.
An external company conducts periodic tests to determine susceptibility to
hackers and responses are made based on the results of these tests. However,
anti-virus software is normally distributed only after a new strain of a virus
has been detected, and hacker responses are made only after a problem has been
discovered. Consequently, there is a possibility that the Company's operations
could be damaged before the responses are made.
Even in this case, there is no danger of the core information system being
infected. However, the possibility exists of a disruption in head office
management operations due to infections that impact the PCs used for
Internet-based operations and general administrative tasks.
4. Damage caused by forged cards, etc.
There are increasing cases of fraud in which data on credit and cash cards are
obtained by skimming or other illegal methods of using forged cards.
The Company introduced credit cards embedded with integrated circuits when it
launched its credit and business in October 2002. The Company also takes
measures such as only partially displaying the credit card number on receipts.
To combat phishing fraud, the Company adds electronic certificates to all e-mail
that it sends. On March 15, 2005, the Company became the first consumer finance
business operator to obtain the British standard BS7799-2:2002 certification on
the international standard and the ISMS (Ver. 2.0) certification on Japan's
domestic standard for information security management systems. The Company has
shifted its system to the international standards ISO/IEC27001:2005, which was
established in October 2005 and JIS Q 27001:2006 on April 5, 2006. Following
certification, on February 28, 2008 the Company also passed the obligatory
certificate renewal inspection, which takes place every three years.
Despite these efforts, there remains a risk of losses caused by unauthorized use
in fraudulent transactions that bypasses the Company's credit control systems or
that uses illicitly-gathered transaction information and PIN numbers.
7) Asset risk
1. Risks associated with exchange rate fluctuation
As of March 31, 2010, the domestic companies of the group held US$ 2 million in
deposits and property denominated in foreign currency. Because of the recent
rise in the value of the yen, foreign exchange losses of 995 million yen were
recorded. Given the fluctuations in foreign exchange rates, the group may record
other significant foreign exchange gain or loss in the future.
2. Risks associated with venture capital investments
The Group has made venture capital investments both directly and indirectly. As
of Mach 31, 2010, venture capital investment securities amounted to 1,648
million yen. Because of the nature of venture capital investments, significant
returns can be expected if a portfolio company conducts an IPO. However,
investments may become worthless if a portfolio company encounters serious
difficulties.
8) Significant litigation
As of the end of March 2010, there were a total of 28 matters before the
courts in which the Company was the defendant. They include one case in which
former employees are claiming payment of outstanding salaries, etc. for service
during their employment; one case of damage for loss; and 26 cases of collection
litigation by local government etc.
The company will be consulting with its litigation attorneys to deal
appropriately with these cases. However, it is possible that the Company may
encounter similar cases in the future that could force the payment of
substantial damages.
In addition, reports about these legal actions in the media may create
concerns among consumers, investors, financial institutions and other
stakeholders that could make it more difficult for Takefuji Group to acquire new
customers, sustain its share price, procure funds and conduct other aspects of
operations.
(5) Important Events Affecting Going-concern Assumption
The Group had been conducting funding through various, expeditious and flexible
measures, such as borrowing from financial institutions, issuance of corporate
bonds and securitization of direct cash loans to customers. However, while
financial situation was becoming more and more severe due to sub-prime loan
issue in the U.S. and Lehman Brother's shock etc., funding environment
surrounding the Group became more severe with financial needs for high-level
interest refund claims and with concerns about impact of loan volume control
that is expected to be introduced at the full enforcement of Money Lending
Business Law scheduled by June 2010. In addition, the Company was downgraded
against this background to give rise to conflict against covenant for early
redemption and other events for a part of borrowings.
In above mentioned situation, the Group considered various funding methods to
improve cash position. As a result, in preparation for the early redemption
requests of convertible bond-type bonds with subscription rights to shares, we
conducted exchange offer of such bonds during the third quarter under review on
a consolidated basis. The Group also conducted sale of listed securities and
sale of a part of restructured loans'included in direct cash loans to customers.
Despite these successful conducts, new funding continues to be extremely
difficult due to extending economic slowdown, unpredictable future of the
industry, high-level interest refund claims and additional downgrade.
As explained above, a material question about the Group's going-concern
assumption exists under current circumstances.
The Group responds to said circumstances with approaches below:
1. Procurement of necessary funds and stabilizing cash position
As severe funding environment is expected to continue for the time being, the
Group endeavors to procure necessary funds for near-term operation by conducting
measures such as transfer of real estate properties held by the Group and loans
receivable, as well as strives to stabilize total cash position through efforts
including reducing burden of existing bonds and considering strategic
operational tie-up to secure new financing method.
2. Improvement of business streamlining
The Group further advances existing business streamlining measures such as
scrap-and-build reduction of branch offices as we have been conducting
continuously and systematically, as well as making other efforts in business
streamlining such as cost cut by reviewing contracts related to payments.
Regarding transfer of real estate properties held by the Group among
measures to procure necessary funds and to stabilize cash position mentioned
above, we have selected properties for transfer from properties held by the
Company and by TDS Co., Ltd.. We are at the stage of deciding sale price by
bidding and currently progressing procedures toward the concluding of contracts.
Regarding sale of loans receivable, we have surely progressed concrete
discussions with counterparties as planned and have obtained a Letter of Intent
to purchase loans receivable as a part of procedures to determine loans
receivable in scope and transfer price.
We consider that the question about the Group's going concern assumption can
be eliminated by surely conducting further business streamlining measures in
addition to continuously advancing measures for stabilizing total cash position.
However, with economic conditions remaining severe and with influence of the
revised Money Lending Business Law, it is not clear that funding environment
surrounding the Group will change for better. Thus a material uncertainty about
the Group's going-concern assumption is currently recognized.
However, consolidated financial statements are made based on going-concern
assumption and they do not reflect the material uncertainty about the Group's
going-concern assumption.
2. Takefuji Group
The Takefuji Group consists of Takefuji Corporation and 8 subsidiaries, which
are subject to consolidation as of March 31, 2010, and 1 equity method affiliate
as of March 31, 2010. Consumer Finance is the core business of the Group while
subsidiaries and the equity method affiliate undertake other business
operations.
Consumer finance:
+--------------------------------------------------------------+
| Direct cash loan business: |
| Takefuji Corporation, one of the largest scale consumer |
| finance companies in Japan in terms of both the number of |
| accounts and the outstanding loan balance, has concentrated |
| since its establishment on making popular, convenient and |
| on-the-spot small-scale consumer loans that require |
| borrowers to provide neither collateral nor guaranties and |
| has developed a nation-wide branch network through local |
| communities in order to meet various customer needs. |
+--------------------------------------------------------------+
| Credit card business: |
| The Company runs credit card business that is deeply rooted |
| into regional communities by offering opportunities of |
| credit card use as "Useful card for life" to such customers |
| who had few chances to hold credit card and by advancing the |
| development of franchise shops. |
+--------------------------------------------------------------+
Other Businesses:
+--------------------------------------------------------------+
| Golf course management: |
| Take One Co., Ltd. is engaged in management of golf courses |
| and provides funds to Takefuji Corporation. |
+--------------------------------------------------------------+
| Real estate business: |
+--------------------------------------------------------------+
| As part of group strategy for efficient use of real estate |
| in possession, Takefuji Corporation and TDS Co., Ltd. |
| undertake real estate business such as development, |
| administration and rental to tenants. |
+--------------------------------------------------------------+
| Venture capital business: |
+--------------------------------------------------------------+
| TWJ EURO Co., Ltd. and TWJ VC Co., Ltd. were established in |
| the U.K. and the U.S., respectively, in order to mainly |
| invest in venture businesses in Europe and in the U.S., |
| respectively. TWJ Co., Ltd. was established as a venture |
| capital subsidiary for investments in venture companies in |
| Japan and abroad. |
| Integrated financial services provider: |
| METRO ASIA CAPITAL Co., Ltd. is engaged mainly in leasing |
| and business finance in Republic of Korea. |
+--------------------------------------------------------------+
| Others: |
+--------------------------------------------------------------+
| Kyoritsu Estate Co., Ltd., Takefuji Capital Co., Ltd., G.H |
| Investment Co., Ltd. |
| |
+--------------------------------------------------------------+
In addition to the above, there is one related company that deals with managing
and leasing of real estate (as of March 31 2010).
The Chart of Takefuji Group
+-----------+--------+--------------+-------------------------+----------+------------+------------+----------+-----------------------------------------------+
| | | | Finance | Golf | Take One Co.,Ltd. | |
| | | | | course | | |
| | | Consumer | |management | | |
| | | Finance | | | | |
+-----------+--------+--------------+------------------------------------+------------+-----------------------+-----------------------------------------------+
| | Loans | | |
+-----------+--------+--------------+-------------------------------------------------------------------------------------------------------------------------+
| Customers | | Takefuji | Finance | Real estate | TDS Co., | |
| | | Corporation | | business | Ltd. | |
| | | | | | | |
+-----------+--------+--------------+-------------------------+-----------------------+------------+----------------------------------------------------------+
| | | | |
+-----------+--------+--------------+-------------------------------------------------------------------------------------------------------------------------+
| | | | Finance | Venture | TWJ EURO Co.,Ltd. | |
| | | | | capital | TWJ VC Co.,Ltd. | |
| | | | | business | TWJ Co.,Ltd. | |
+-----------+--------+--------------+------------------------------------+------------+-----------------------+-----------------------------------------------+
| | | | |
+-----------+--------+--------------+-------------------------------------------------------------------------------------------------------------------------+
| | | | | METRO ASIA CAPITAL Co., Ltd. | |
| | | | | Kyoritsu Estate Co., Ltd. | |
| | | | | Takefuji Capital Co., Ltd. | |
| | | | | G.H Investment Co.,Ltd | |
+-----------+--------+--------------+------------------------------------+------------------------------------+-----------------------------------------------+
| | | | |
+-----------+--------+--------------+-------------------------------------------------------------------------------------------------------------------------+
| | | | | | | | | |
+-----------+--------+--------------+-------------------------+----------+------------+------------+----------+-----------------------------------------------+
3. Management Policy
(1) Fundamental corporate management policy
The Group has developed as a customer-friendly financial institution with close
links to local communities that provides unsecured, unguaranteed small-lot loans
based on its founding principles of "Customer First" and "Management
Efficiency." Recognizing that it is a social commitment of a consumer finance
company to appropriately meet the needs of sound borrowers as much as possible,
we accurately grasp the needs of our customers and work to provide a wide range
of meticulous services. We will also make efforts in areas such as the promotion
of business efficiency through the optimum distribution of business resources,
the expansion of Corporate Social Responsibility (CSR) activities, and the
bolstering of our corporate governance and compliance system to be worthy of the
trust of our stakeholders and increase our corporate value.
(2) Target management indices
The Group considers the shareholders' equity ratio to be an important business
indicator for the establishment of a robust business foundation. To enhance
management efficiency and shareholders' value, we will also seek to maintain and
improve other business indicators such as return on assets (ROA), return on
equity (ROE) and net income per share.
(3)Medium-to-long term corporate management strategy
The operating environment surrounding the consumer finance industry is likely to
remain severe, given for instance the introduction of aggregate debt control and
a reduction of the cap interest rate with the full enforcement of the Money
Lending Business Law, as well as funding difficulties due to the consistently
large number of interest refund claims. While the consumer finance market has
been contracting and competition among lenders in different sectors is
intensifying, the Company is placing priority on securing liquidity in hand,
responding to interest refund claims, and ensuring earnings despite a reduction
in the balance of direct cash loans to customers and is united in its
determination to take the following measures to maximize corporate value:
1) Securing liquidity in hand
In a severe financing environment, we intend to raise funds by utilizing and
selling assets including loan claims and real estate, attaching overriding
importance in management to cash flow. We also plan to adopt comprehensive
measures for "reducing expenses" and "increasing income," in order to secure the
funds required to operate our business.
2) Enhancing the ability to respond to interest refund claims
We have set up "Loan Administration Division" to enhance our ability to respond
systematically to interest refund claims, the number of which has remained high.
We will strive to reduce the total costs incurred by interest refund claims by
developing and systematizing the staff responsible and clarifying their
responsibilities and authorities.
3) Ensuring earnings despite a reduction in the balance of direct cash loans to
customers
As our response to the reduction in the balance of direct cash loans to
customers, which is a source of earnings, we will exploit new earnings sources
by seeking M&A, business and capital alliances, and other possibilities, while
considering expansion overseas. In addition, we will constantly seek to improve
management efficiency and achieve extensive cost savings, while continuing to
close and integrate branch offices.
Through these measures, the Company will establish a strong business model,
enabling it to achieve profits even in a severe environment and establish a more
robust business foundation.
(4) Basic guidelines regarding relationships with related parties
Facilities owned by related parties are used as a part of training center. As
for the said transaction, having considered demands and the trend of market
price, all procedures and conditions same as other transactions are conducted
and applied.
4. Consolidated Financial Statements
(1) Consolidated Balance Sheets
+-----------------------+---------+---------------+---------+--------------+
| | | (millions of yen) |
+-----------------------+-------------------------+------------------------+
| | Previous Consolidated | Current Consolidated |
| | Fiscal Year | Fiscal Year |
| | (as of March 31, 2009) |(as of March 31, 2010) |
+-----------------------+-------------------------+------------------------+
| Assets: | | | | |
+-----------------------+---------+---------------+---------+--------------+
| Current assets | | | | |
+-----------------------+---------+---------------+---------+--------------+
| Cash and deposits | | 47,871 | | 40,372 |
+-----------------------+---------+---------------+---------+--------------+
| Direct cash loans to | *1,2,6 | 861,517 | *1,2,6 | 589,477 |
| customers | | | | |
+-----------------------+---------+---------------+---------+--------------+
| Installment | | 465 | | 312 |
| receivables | | | | |
+-----------------------+---------+---------------+---------+--------------+
| Raw materials and | | 241 | | 218 |
| supplies | | | | |
+-----------------------+---------+---------------+---------+--------------+
| Accrued interest | | 7,914 | | 5,693 |
| income on | | | | |
| direct cash loans to | | | | |
| customers | | | | |
+-----------------------+---------+---------------+---------+--------------+
| Short-term loans | *4 | 49,992 | *4 | 19,989 |
| receivable | | | | |
+-----------------------+---------+---------------+---------+--------------+
| Deferred income tax | | 13 | | - |
| assets | | | | |
+-----------------------+---------+---------------+---------+--------------+
| Other current assets | | 15,523 | | 37,596 |
+-----------------------+---------+---------------+---------+--------------+
| Allowance for credit | | -96,994 | | -60,658 |
| losses | | | | |
+-----------------------+---------+---------------+---------+--------------+
| Total current assets | | 886,541 | | 633,000 |
+-----------------------+---------+---------------+---------+--------------+
| Fixed assets | | | | |
+-----------------------+---------+---------------+---------+--------------+
| Tangible fixed | | | | |
| assets | | | | |
+-----------------------+---------+---------------+---------+--------------+
| Buildings and | | 6,144 | | 4,239 |
| structures' equity | | | | |
+-----------------------+---------+---------------+---------+--------------+
| Machinery and | | 68 | | 53 |
| vehicles'equity | | | | |
+-----------------------+---------+---------------+---------+--------------+
| Equipment, furniture | | 4,140 | | 3,512 |
| and fixtures' | | | | |
| equity | | | | |
+-----------------------+---------+---------------+---------+--------------+
| Land | | 34,649 | | 25,216 |
+-----------------------+---------+---------------+---------+--------------+
| Golf course | | 195 | | 195 |
+-----------------------+---------+---------------+---------+--------------+
| Total tangible fixed | *5 | 45,195 | *5 | 33,214 |
| assets | | | | |
+-----------------------+---------+---------------+---------+--------------+
| Intangible fixed | | 5,174 | | 4,837 |
| assets | | | | |
+-----------------------+---------+---------------+---------+--------------+
| Investments and | | | | |
| other assets | | | | |
+-----------------------+---------+---------------+---------+--------------+
| Investment securities | | 10,981 | *8 | 5,624 |
+-----------------------+---------+---------------+---------+--------------+
| Long-term deposits | | 5,580 | | 6,206 |
+-----------------------+---------+---------------+---------+--------------+
| Other investments | | 4,992 | | 4,050 |
| and | | | | |
| other assets | | | | |
+-----------------------+---------+---------------+---------+--------------+
| Total investment and | | 21,554 | | 15,880 |
| other assets | | | | |
+-----------------------+---------+---------------+---------+--------------+
| Total fixed assets | | 71,923 | | 53,931 |
+-----------------------+---------+---------------+---------+--------------+
| Total assets | | 958,464 | | 686,931 |
+-----------------------+---------+---------------+---------+--------------+
+-----------------------+---------+---------------+---------+---------------+
| | | (millions of yen) |
+-----------------------+-------------------------+-------------------------+
| | Previous Consolidated | Current Consolidated |
| | Fiscal Year | Fiscal Year |
| | (as of March 31, 2009) | (as of March 31, 2010) |
+-----------------------+-------------------------+-------------------------+
| Liabilities: | | | | |
+-----------------------+---------+---------------+---------+---------------+
| Current liabilities | | | | |
+-----------------------+---------+---------------+---------+---------------+
| Current portion of | | - | | 9,068 |
| bonds | | | | |
+-----------------------+---------+---------------+---------+---------------+
| Current portion of | *1 | 91,595 | *1 | 80,406 |
| long-term borrowings | | | | |
+-----------------------+---------+---------------+---------+---------------+
| Income taxes payable | | 461 | | 317 |
+-----------------------+---------+---------------+---------+---------------+
| Allowance for bonuses | | 639 | | 376 |
+-----------------------+---------+---------------+---------+---------------+
| Allowance for loss | | - | | 11,276 |
| on transfer of | | | | |
| receivables | | | | |
+-----------------------+---------+---------------+---------+---------------+
| Other current | | 31,478 | | 30,702 |
| liabilities | | | | |
+-----------------------+---------+---------------+---------+---------------+
| Total current | | 124,173 | | 132,145 |
| liabilities | | | | |
+-----------------------+---------+---------------+---------+---------------+
| Fixed liabilities | | | | |
+-----------------------+---------+---------------+---------+---------------+
| Bonds payable | | 88,567 | | 83,470 |
+-----------------------+---------+---------------+---------+---------------+
| Convertible | | 70,000 | | 42,400 |
| bond-type bonds with | | | | |
| subscription rights | | | | |
| to shares | | | | |
+-----------------------+---------+---------------+---------+---------------+
| Long-term borrowings | *1 | 115,579 | | 38 |
+-----------------------+---------+---------------+---------+---------------+
| Deferred income tax | | 8 | | 7 |
| liabilities | | | | |
+-----------------------+---------+---------------+---------+---------------+
| Allowance for | | 403,357 | | 272,953 |
| losses for refund of | | | | |
| interest received | | | | |
| from customers | | | | |
+-----------------------+---------+---------------+---------+---------------+
| Allowance for | | 3,610 | | 3,881 |
| retirement benefits | | | | |
| of employees | | | | |
+-----------------------+---------+---------------+---------+---------------+
| Allowance for | | 147 | | 178 |
| retirement benefits | | | | |
| of directors and | | | | |
| corporate auditors | | | | |
+-----------------------+---------+---------------+---------+---------------+
| Other fixed | | 3,374 | | 1,239 |
| liabilities | | | | |
+-----------------------+---------+---------------+---------+---------------+
| Total fixed | | 684,642 | | 404,166 |
| liabilities | | | | |
+-----------------------+---------+---------------+---------+---------------+
| Total liabilities | | 808,816 | | 536,311 |
+-----------------------+---------+---------------+---------+---------------+
+-----------------------+---------+---------------+---------+---------------+
| | | (millions of yen) |
+-----------------------+-------------------------+-------------------------+
| | Previous Consolidated | Current Consolidated |
| | Fiscal Year | Fiscal Year |
| | (as of March 31, 2009) | (as of March 31, 2010) |
+-----------------------+-------------------------+-------------------------+
| Net assets: | | | | |
+-----------------------+---------+---------------+---------+---------------+
| Shareholders' equity | | | | |
+-----------------------+---------+---------------+---------+---------------+
| Capital stock | | 30,478 | | 30,478 |
+-----------------------+---------+---------------+---------+---------------+
| Capital surplus | | 52,263 | | 52,263 |
+-----------------------+---------+---------------+---------+---------------+
| Retained earnings | | 105,761 | | 105,616 |
+-----------------------+---------+---------------+---------+---------------+
| Treasury stock | | -36,469 | | -36,469 |
+-----------------------+---------+---------------+---------+---------------+
| Total shareholders' | | 152,034 | | 151,889 |
| equity | | | | |
+-----------------------+---------+---------------+---------+---------------+
| Valuation and | | | | |
| foreign currency | | | | |
| translation | | | | |
| adjustments | | | | |
+-----------------------+---------+---------------+---------+---------------+
| Valuation difference | | -1,943 | | -945 |
| on available-for-sale | | | | |
| securities | | | | |
+-----------------------+---------+---------------+---------+---------------+
| Foreign currency | | -584 | | -526 |
| translation | | | | |
| adjustments | | | | |
+-----------------------+---------+---------------+---------+---------------+
| Total valuation and | | -2,527 | | -1,471 |
| foreign currency | | | | |
| translation | | | | |
| adjustments | | | | |
+-----------------------+---------+---------------+---------+---------------+
| Subscription rights | | 141 | | 202 |
| to shares | | | | |
+-----------------------+---------+---------------+---------+---------------+
| Total net assets | | 149,648 | | 150,620 |
+-----------------------+---------+---------------+---------+---------------+
| Total liabilities and | | 958,464 | | 686,931 |
| net assets | | | | |
+-----------------------+---------+---------------+---------+---------------+
(2) Consolidated Statements of Income
+-----------------------+---------+---------------+---------+---------------+
| | | (millions of yen) |
+-----------------------+-------------------------+-------------------------+
| | Previous Consolidated | Current Consolidated |
| | Fiscal Year | Fiscal Year |
| | (from April 1, 2008 to | (from April 1, 2009 to |
| | March 31, 2009) | March 31, 2010) |
+-----------------------+-------------------------+-------------------------+
| Operating revenues | | | | |
+-----------------------+---------+---------------+---------+---------------+
| Interest income on | | 178,337 | | 113,581 |
| direct | | | | |
| cash loans | | | | |
+-----------------------+---------+---------------+---------+---------------+
| Credit card revenues | | 69 | | 57 |
+-----------------------+---------+---------------+---------+---------------+
| Other financial | | 2,611 | | 783 |
| revenues | | | | |
+-----------------------+---------+---------------+---------+---------------+
| Other operating | | 5,331 | | 5,845 |
| revenues | | | | |
+-----------------------+---------+---------------+---------+---------------+
| Total operating | | 186,349 | | 120,266 |
| revenues | | | | |
+-----------------------+---------+---------------+---------+---------------+
| Operating expenses | | | | |
+-----------------------+---------+---------------+---------+---------------+
| Financial expenses | | | | |
+-----------------------+---------+---------------+---------+---------------+
| Borrowing interest | | 7,874 | | 3,980 |
| expenses | | | | |
+-----------------------+---------+---------------+---------+---------------+
| Bond interest | | 10,188 | | 5,879 |
| expenses | | | | |
+-----------------------+---------+---------------+---------+---------------+
| Other financial | | 987 | | 1,868 |
| expenses | | | | |
+-----------------------+---------+---------------+---------+---------------+
| Total financial | | 19,049 | | 11,727 |
| expenses | | | | |
+-----------------------+---------+---------------+---------+---------------+
| Other operating | | | | |
| expenses | | | | |
+-----------------------+---------+---------------+---------+---------------+
| Advertising expenses | | 4,250 | | 2,934 |
+-----------------------+---------+---------------+---------+---------------+
| Bad debts expenses | | 406 | | - |
+-----------------------+---------+---------------+---------+---------------+
| Provisions for credit | | 96,994 | | 34,968 |
| losses | | | | |
+-----------------------+---------+---------------+---------+---------------+
| Provisions for losses | | 229,662 | | - |
| for | | | | |
| refund of interest | | | | |
| received from | | | | |
| customers | | | | |
+-----------------------+---------+---------------+---------+---------------+
| Salaries and | | 13,474 | | 11,035 |
| bonuses | | | | |
+-----------------------+---------+---------------+---------+---------------+
| Provisions for | | 639 | | 376 |
| bonuses | | | | |
+-----------------------+---------+---------------+---------+---------------+
| Provisions for | | 755 | | 765 |
| retirement benefits | | | | |
| of employees | | | | |
+-----------------------+---------+---------------+---------+---------------+
| Provisions for | | 44 | | 38 |
| retirement benefits | | | | |
| of directors and | | | | |
| corporate auditors | | | | |
+-----------------------+---------+---------------+---------+---------------+
| Rent | | 5,133 | | 3,891 |
+-----------------------+---------+---------------+---------+---------------+
| Depreciation and | | 3,207 | | 3,081 |
| amortization | | | | |
+-----------------------+---------+---------------+---------+---------------+
| Handling charges | | 11,941 | | 9,552 |
+-----------------------+---------+---------------+---------+---------------+
| Other | | 11,408 | | 8,538 |
+-----------------------+---------+---------------+---------+---------------+
| Total other operating | | 377,911 | | 75,180 |
| expenses | | | | |
+-----------------------+---------+---------------+---------+---------------+
| Total operating | | 396,961 | | 86,907 |
| expenses | | | | |
+-----------------------+---------+---------------+---------+---------------+
| Operating income | | -210,612 | | 33,360 |
+-----------------------+---------+---------------+---------+---------------+
+-----------------------+---------+---------------+---------+---------------+
| | | (millions of yen) |
+-----------------------+-------------------------+-------------------------+
| | Previous Consolidated | Current Consolidated |
| | Fiscal Year | Fiscal Year |
| | (from April 1, 2008 to | (from April 1, 2009 to |
| | March 31, 2009) | March 31, 2010) |
+-----------------------+-------------------------+-------------------------+
| Non-operating income | | | | |
+-----------------------+---------+---------------+---------+---------------+
| Dividends income | | 698 | | 247 |
+-----------------------+---------+---------------+---------+---------------+
| Interest on income | | 174 | | - |
| taxes refunds | | | | |
+-----------------------+---------+---------------+---------+---------------+
| Miscellaneous income | | 115 | | 666 |
+-----------------------+---------+---------------+---------+---------------+
| Total non-operating | | 987 | | 913 |
| income | | | | |
+-----------------------+---------+---------------+---------+---------------+
| Non-operating | | | | |
| expenses | | | | |
+-----------------------+---------+---------------+---------+---------------+
| Loss on disposal or | | 182 | | 45 |
| sales of | | | | |
| fixed assets | | | | |
+-----------------------+---------+---------------+---------+---------------+
| Equity in losses of | | - | | 1 |
| affiliates | | | | |
+-----------------------+---------+---------------+---------+---------------+
| Foreign exchange | | 1,331 | | 995 |
| losses | | | | |
+-----------------------+---------+---------------+---------+---------------+
| Bond issuance cost | | 1,798 | | - |
+-----------------------+---------+---------------+---------+---------------+
| Option fees | | 1,709 | | - |
+-----------------------+---------+---------------+---------+---------------+
| Miscellaneous loss | | 24 | | 52 |
+-----------------------+---------+---------------+---------+---------------+
| Total non-operating | | 5,043 | | 1,093 |
| expenses | | | | |
+-----------------------+---------+---------------+---------+---------------+
| Ordinary income | | -214,669 | | 33,180 |
+-----------------------+---------+---------------+---------+---------------+
+-----------------------+---------+---------------+---------+---------------+
| | | (millions of yen) |
+-----------------------+-------------------------+-------------------------+
| | Previous Consolidated | Current Consolidated |
| | Fiscal Year | Fiscal Year |
| | (from April 1, 2008 to | (from April 1, 2009 to |
| | March 31, 2009) | March 31, 2010) |
+-----------------------+-------------------------+-------------------------+
| Extraordinary income | | | | |
+-----------------------+---------+---------------+---------+---------------+
| Gain on sales of | | 688 | | 668 |
| investment securities | | | | |
+-----------------------+---------+---------------+---------+---------------+
| Gain on redemption | | - | | 4,475 |
| of bonds | | | | |
+-----------------------+---------+---------------+---------+---------------+
| Gain on sales of | | - | *2 | 808 |
| fixed assets | | | | |
+-----------------------+---------+---------------+---------+---------------+
| Other | | 31 | | - |
+-----------------------+---------+---------------+---------+---------------+
| Total | | 718 | | 5,951 |
| extraordinary income | | | | |
+-----------------------+---------+---------------+---------+---------------+
| Extraordinary loss | | | | |
+-----------------------+---------+---------------+---------+---------------+
| Loss on devaluation | | 766 | | 831 |
| of investment | | | | |
| securities | | | | |
+-----------------------+---------+---------------+---------+---------------+
| Loss on sales of | | 124 | | 900 |
| investment securities | | | | |
+-----------------------+---------+---------------+---------+---------------+
| Impairment loss | *3 | 386 | *3 | 10,601 |
+-----------------------+---------+---------------+---------+---------------+
| Loss on closing of | *4 | 1,896 | *4 | 1,603 |
| branch offices | | | | |
+-----------------------+---------+---------------+---------+---------------+
| Loss on commitment | *5 | 2,165 | | - |
| facility cancellation | | | | |
+-----------------------+---------+---------------+---------+---------------+
| Loss on redemption | | 10,475 | | - |
| of bonds | | | | |
+-----------------------+---------+---------------+---------+---------------+
| Loss on transfer of | | - | *6 | 8,807 |
| receivables | | | | |
+-----------------------+---------+---------------+---------+---------------+
| Provisions for loss | | - | *7 | 11,276 |
| on transfer of | | | | |
| receivables | | | | |
| | | | | |
+-----------------------+---------+---------------+---------+---------------+
| Other | | 173 | | 153 |
+-----------------------+---------+---------------+---------+---------------+
| Total extraordinary | | 15,985 | | 34,171 |
| loss | | | | |
+-----------------------+---------+---------------+---------+---------------+
| Income before income | | -229,935 | | 4,959 |
| taxes | | | | |
+-----------------------+---------+---------------+---------+---------------+
| Income taxes-current | | 766 | | 370 |
+-----------------------+---------+---------------+---------+---------------+
| Income taxes-deferred | | 25,435 | | 13 |
+-----------------------+---------+---------------+---------+---------------+
| Total income taxes | | 26,201 | | 382 |
+-----------------------+---------+---------------+---------+---------------+
| Net income | | -256,137 | | 4,577 |
+-----------------------+---------+---------------+---------+---------------+
(3)Consolidated Statement of Changes in Net Assets
+-----------------------+-----------------------+-----------------------+
| | | (millions of yen) |
+-----------------------+-----------------------+-----------------------+
| |Previous Consolidated | Current Consolidated |
| | Fiscal Year | Fiscal Year |
| | (from April 1, 2008 | (from April 1, 2009 |
| | to March 31, 2009) | to March 31, 2010) |
+-----------------------+-----------------------+-----------------------+
| Shareholders' equity | | |
+-----------------------+-----------------------+-----------------------+
| Capital stock | | |
+-----------------------+-----------------------+-----------------------+
| Beginning Balance | 30,478 | 30,478 |
+-----------------------+-----------------------+-----------------------+
| Changes of items | | |
| during | | |
+-----------------------+-----------------------+-----------------------+
| Total changes | - | - |
| of items during | | |
+-----------------------+-----------------------+-----------------------+
| Ending Balance | 30,478 | 30,478 |
+-----------------------+-----------------------+-----------------------+
| Capital surplus | | |
+-----------------------+-----------------------+-----------------------+
| Beginning | 52,263 | 52,263 |
| Balance | | |
+-----------------------+-----------------------+-----------------------+
| Changes of items | | |
| during | | |
+-----------------------+-----------------------+-----------------------+
| Total changes | - | - |
| of items during | | |
+-----------------------+-----------------------+-----------------------+
| Ending Balance | 52,263 | 52,263 |
+-----------------------+-----------------------+-----------------------+
| Retained earnings | | |
+-----------------------+-----------------------+-----------------------+
| Beginning | 393,367 | 105,761 |
| Balance | | |
+-----------------------+-----------------------+-----------------------+
| Changes of items | | |
| during | | |
+-----------------------+-----------------------+-----------------------+
| Dividends | -16,464 | -4,722 |
+-----------------------+-----------------------+-----------------------+
| Net income | -256,137 | 4,577 |
+-----------------------+-----------------------+-----------------------+
| Cancellation of | -15,005 | - |
| treasury stock | | |
+-----------------------+-----------------------+-----------------------+
| Total changes of | -287,606 | -145 |
| items during | | |
+-----------------------+-----------------------+-----------------------+
| Ending Balance | 105,761 | 105,616 |
+-----------------------+-----------------------+-----------------------+
| Treasury stock | | |
+-----------------------+-----------------------+-----------------------+
| Beginning Balance | -48,248 | -36,469 |
+-----------------------+-----------------------+-----------------------+
| Changes of items | | |
| during | | |
+-----------------------+-----------------------+-----------------------+
| Acquisition of | -3,225 | -0 |
| treasury stock | | |
+-----------------------+-----------------------+-----------------------+
| Cancellation of | 15,005 | - |
| treasury stock | | |
+-----------------------+-----------------------+-----------------------+
| Total changes of | 11,779 | -0 |
| items during | | |
+-----------------------+-----------------------+-----------------------+
| Ending Balance | -36,469 | -36,469 |
+-----------------------+-----------------------+-----------------------+
+-----------------------+-----------------------+-----------------------+
| | | (millions of yen) |
+-----------------------+-----------------------+-----------------------+
| |Previous Consolidated | Current Consolidated |
| | Fiscal Year | Fiscal Year |
| | (from April 1, 2008 | (from April 1, 2009 |
| | to March 31, 2009) | to March 31, 2010) |
+-----------------------+-----------------------+-----------------------+
| Total shareholders' | | |
| equity | | |
+-----------------------+-----------------------+-----------------------+
| Beginning | 427,861 | 152,034 |
| Balance | | |
+-----------------------+-----------------------+-----------------------+
| Changes of items | | |
| during | | |
+-----------------------+-----------------------+-----------------------+
| Dividends | -16,464 | -4,722 |
+-----------------------+-----------------------+-----------------------+
| Net income | -256,137 | 4,577 |
+-----------------------+-----------------------+-----------------------+
| Acquisition of | -3,225 | -0 |
| treasury stock | | |
+-----------------------+-----------------------+-----------------------+
| Cancellation of | - | - |
| treasury stock | | |
+-----------------------+-----------------------+-----------------------+
| Total changes of | -275,827 | -145 |
| items during | | |
+-----------------------+-----------------------+-----------------------+
| Ending Balance | 152,034 | 151,889 |
+-----------------------+-----------------------+-----------------------+
+-----------------------+-----------------------+------------------------+
| | | (millions of yen) |
+-----------------------+-----------------------+------------------------+
| |Previous Consolidated | Current Consolidated |
| | Fiscal Year | Fiscal Year |
| | (from April 1, 2008 |(from April 1, 2009 to |
| | to March 31, 2009) | March 31, 2010) |
+-----------------------+-----------------------+------------------------+
| Valuation and foreign | | |
| currency translation | | |
| adjustments | | |
+-----------------------+-----------------------+------------------------+
| Valuation difference | | |
| on available-for-sale | | |
| securities | | |
+-----------------------+-----------------------+------------------------+
| Beginning Balance | 1,619 | -1,943 |
+-----------------------+-----------------------+------------------------+
| Changes of items | | |
| during | | |
+-----------------------+-----------------------+------------------------+
| Net changes of | -3,562 | 998 |
| items other than | | |
| shareholders' equity | | |
+-----------------------+-----------------------+------------------------+
| Total changes of | -3,562 | 998 |
| items during | | |
+-----------------------+-----------------------+------------------------+
| Ending Balance | -1,943 | -945 |
+-----------------------+-----------------------+------------------------+
| Deferred gains or | | |
| losses on hedges | | |
+-----------------------+-----------------------+------------------------+
| Beginning Balance | 4,383 | - |
+-----------------------+-----------------------+------------------------+
| Changes of items | | |
| during | | |
+-----------------------+-----------------------+------------------------+
| Net changes of | -4,383 | - |
| items other | | |
| than shareholders' | | |
| equity | | |
+-----------------------+-----------------------+------------------------+
| Total changes of | -4,383 | - |
| items during | | |
+-----------------------+-----------------------+------------------------+
| Ending Balance | - | - |
+-----------------------+-----------------------+------------------------+
| Foreign currency | | |
| translation | | |
| adjustments | | |
+-----------------------+-----------------------+------------------------+
| Beginning Balance | -128 | -584 |
+-----------------------+-----------------------+------------------------+
| Changes of items | | |
| during | | |
+-----------------------+-----------------------+------------------------+
| Net changes of | -457 | 58 |
| items other | | |
| than shareholders' | | |
| equity | | |
+-----------------------+-----------------------+------------------------+
| Total changes of | -457 | 58 |
| items during | | |
+-----------------------+-----------------------+------------------------+
| Ending Balance | -584 | -526 |
+-----------------------+-----------------------+------------------------+
| Total valuation and | | |
| foreign currency | | |
| translation | | |
| adjustments | | |
+-----------------------+-----------------------+------------------------+
| Beginning Balance | 5,875 | -2,527 |
+-----------------------+-----------------------+------------------------+
| Changes of items | | |
| during | | |
+-----------------------+-----------------------+------------------------+
| Net changes of | -8,402 | 1,056 |
| items other | | |
| than shareholders' | | |
| equity | | |
+-----------------------+-----------------------+------------------------+
| Total changes of | -8,402 | 1,056 |
| items during | | |
+-----------------------+-----------------------+------------------------+
| Ending Balance | -2,527 | -1,471 |
+-----------------------+-----------------------+------------------------+
+-----------------------+----------------------------+---------------------------+
| | | (millions of yen) |
+-----------------------+----------------------------+---------------------------+
| | Previous Consolidated | Current Consolidated |
| | Fiscal Year | Fiscal Year |
| | (from April 1, 2008 | (from April 1, 2009 to |
| | to March 31, 2009) | March 31, 2010) |
+-----------------------+----------------------------+---------------------------+
| Subscription rights | | |
| to shares | | |
+-----------------------+----------------------------+---------------------------+
| Beginning Balance | 41 | 141 |
+-----------------------+----------------------------+---------------------------+
| Changes of items | | |
| during | | |
+-----------------------+----------------------------+---------------------------+
| Net changes of | 101 | 61 |
| items other | | |
| than shareholders' | | |
| equity | | |
+-----------------------+----------------------------+---------------------------+
| Total changes of | 101 | 61 |
| items during | | |
+-----------------------+----------------------------+---------------------------+
| Ending Balance | 141 | 202 |
+-----------------------+----------------------------+---------------------------+
| Total net assets | | |
+-----------------------+----------------------------+---------------------------+
| Beginning Balance | 433,776 | 149,648 |
+-----------------------+----------------------------+---------------------------+
| Changes of items | | |
| during | | |
+-----------------------+----------------------------+---------------------------+
| Dividends | -16,464 | -4,722 |
+-----------------------+----------------------------+---------------------------+
| Net income | -256,137 | 4,577 |
+-----------------------+----------------------------+---------------------------+
| Acquisition | -3,225 | -0 |
| of treasury stock | | |
+-----------------------+----------------------------+---------------------------+
| Net changes of | -8,301 | 1,117 |
| items other than | | |
| shareholders' equity | | |
+-----------------------+----------------------------+---------------------------+
| Total changes of | -284,128 | 972 |
| items during | | |
+-----------------------+----------------------------+---------------------------+
| Ending Balance | 149,648 | 150,620 |
+-----------------------+----------------------------+---------------------------+
(4) Consolidated Statements of Cash Flows
+-----------------------+-----------------------+------------------------+
| | | (millions of yen) |
+-----------------------+-----------------------+------------------------+
| |Previous Consolidated | Current Consolidated |
| | Fiscal Year | Fiscal Year |
| | (from April 1, 2008 |(from April 1, 2009 to |
| | to March 31, 2009) | March 31, 2010) |
+-----------------------+-----------------------+------------------------+
| Net cash provided by | | |
| operating activities | | |
+-----------------------+-----------------------+------------------------+
| Income before income | -229,935 | 4,959 |
| taxes | | |
+-----------------------+-----------------------+------------------------+
| Depreciation and | 3,207 | 3,081 |
| amortization | | |
+-----------------------+-----------------------+------------------------+
| Impairment loss | 386 | 10,601 |
+-----------------------+-----------------------+------------------------+
| Gain or loss on | 218 | 92 |
| investments in | | |
| partnerships | | |
+-----------------------+-----------------------+------------------------+
| Equity in losses of | - | 1 |
| affiliates | | |
+-----------------------+-----------------------+------------------------+
| Increase or decrease | 366 | 271 |
| in allowance for | | |
| retirement benefits | | |
| of employees | | |
+-----------------------+-----------------------+------------------------+
| Increase or decrease | 13 | 31 |
| in allowance for | | |
| retirement benefits | | |
| of directors and | | |
| corporate auditors | | |
+-----------------------+-----------------------+------------------------+
| Increase or decrease | -47,004 | -36,336 |
| in allowance for | | |
| credit losses | | |
+-----------------------+-----------------------+------------------------+
| Increase in allowance | - | 11,276 |
| for loss on transfer | | |
| receivables | | |
+-----------------------+-----------------------+------------------------+
| Increase or decrease | 17,101 | -130,404 |
| in allowance for | | |
| losses for refund of | | |
| interest received | | |
| from customers | | |
+-----------------------+-----------------------+------------------------+
| Write-offs | 144,404 | 57,186 |
+-----------------------+-----------------------+------------------------+
| Interest repaid | 67,531 | 43,875 |
| (portion of principal | | |
| impaired) | | |
+-----------------------+-----------------------+------------------------+
| Interest and | -698 | -247 |
| dividends income | | |
+-----------------------+-----------------------+------------------------+
| Loss on closing of | 1,896 | 371 |
| branch offices | | |
+-----------------------+-----------------------+------------------------+
| Gain or loss on sales | 182 | -763 |
| and retirement of | | |
| noncurrent assets | | |
+-----------------------+-----------------------+------------------------+
| Gain or loss on sales | -564 | 232 |
| of short-term and | | |
| long-term investment | | |
| securities | | |
+-----------------------+-----------------------+------------------------+
| Loss on devaluation | 766 | 831 |
| of investment | | |
| securities | | |
+-----------------------+-----------------------+------------------------+
| Increase or decrease | 2,948 | 2,221 |
| in accrued | | |
| interest income on | | |
| direct cash loans to | | |
| customers | | |
+-----------------------+-----------------------+------------------------+
| Direct cash loans | -174,297 | -58,746 |
| made to customers | | |
+-----------------------+-----------------------+------------------------+
| Direct cash loans | 296,271 | 194,100 |
| collected from | | |
| customers | | |
+-----------------------+-----------------------+------------------------+
| Decrease in direct | - | 35,684 |
| cash loans due to | | |
| transfer of | | |
| receivables | | |
+-----------------------+-----------------------+------------------------+
| Gain or loss on | 10,475 | -4,475 |
| redemption of bonds | | |
+-----------------------+-----------------------+------------------------+
| Increase or decrease | 40,976 | -6 |
| of long-term deposit | | |
+-----------------------+-----------------------+------------------------+
| Other | 11,493 | -24,838 |
+-----------------------+-----------------------+------------------------+
| Subtotal | 145,735 | 108,999 |
+-----------------------+-----------------------+------------------------+
+-----------------------+-----------------------+------------------------+
| | | (millions of yen) |
+-----------------------+-----------------------+------------------------+
| |Previous Consolidated | Current Consolidated |
| | Fiscal Year | Fiscal Year |
| | (from April 1, 2008 |(from April 1, 2009 to |
| | to March 31, 2009) | March 31, 2010) |
+-----------------------+-----------------------+------------------------+
| Interest and | 698 | 247 |
| dividends income | | |
| received | | |
+-----------------------+-----------------------+------------------------+
| Income taxes paid | -666 | -517 |
+-----------------------+-----------------------+------------------------+
| Income taxes refund | 4,253 | 275 |
+-----------------------+-----------------------+------------------------+
| Net cash provided by | 150,020 | 109,005 |
| operating activities | | |
+-----------------------+-----------------------+------------------------+
| Net cash provided by | | |
| investing activities | | |
+-----------------------+-----------------------+------------------------+
| Proceeds from sales | - | 1,424 |
| of tangible fixed | | |
| assets | | |
+-----------------------+-----------------------+------------------------+
| Purchase of tangible | -1,007 | -755 |
| fixed assets | | |
+-----------------------+-----------------------+------------------------+
| Purchase of | -2,711 | -1,141 |
| intangible fixed | | |
| assets | | |
+-----------------------+-----------------------+------------------------+
| Purchase of | -575 | -1,220 |
| investment securities | | |
+-----------------------+-----------------------+------------------------+
| Proceeds from sales | 1,499 | 6,210 |
| of investment | | |
| securities | | |
+-----------------------+-----------------------+------------------------+
| Other | 684 | 1,154 |
+-----------------------+-----------------------+------------------------+
| Net cash provided by | -2,110 | 5,672 |
| investing activities | | |
+-----------------------+-----------------------+------------------------+
| Net cash provided by | | |
| financing activities | | |
+-----------------------+-----------------------+------------------------+
| Proceeds from | 6,200 | - |
| long-term borrowings | | |
+-----------------------+-----------------------+------------------------+
| Repayments of | -177,306 | -126,730 |
| long-term borrowings | | |
+-----------------------+-----------------------+------------------------+
| Repayments for | -82,400 | -5,841 |
| redemption of bonds | | |
+-----------------------+-----------------------+------------------------+
| Proceeds from | 70,000 | - |
| issuance of bonds | | |
| with subscription | | |
| rights to shares | | |
+-----------------------+-----------------------+------------------------+
| Repayments for | - | -13,805 |
| redemption of bonds | | |
| with subscription | | |
| rights to shares | | |
+-----------------------+-----------------------+------------------------+
| New decrease | -3,225 | -0 |
| (increase) in | | |
| treasury stock | | |
+-----------------------+-----------------------+------------------------+
| Cash dividends paid | -16,461 | -4,720 |
+-----------------------+-----------------------+------------------------+
| Net cash provided by | -203,193 | -151,096 |
| financing activities | | |
+-----------------------+-----------------------+------------------------+
| Effect of exchange | -326 | -1,081 |
| rate changes on cash | | |
| and cash equivalents | | |
+-----------------------+-----------------------+------------------------+
| Net increase or | -55,609 | -37,501 |
| decrease in cash and | | |
| cash equivalents | | |
+-----------------------+-----------------------+------------------------+
| Cash and cash | 153,471 | 97,862 |
| equivalents at the | | |
| beginning of | | |
| the fiscal year | | |
+-----------------------+-----------------------+------------------------+
| Cash and cash | * 1 97,862 | * 1 60,361 |
| equivalents at the | | |
| end of the fiscal | | |
| year | | |
+-----------------------+-----------------------+------------------------+
Notes on the Going-concern Assumption
+-----------------------------------+-----------------------------------+
|Previous Consolidated Fiscal Year | Current Consolidated Fiscal Year |
| (from April 1, 2008 to March 31, | (from April 1, 2009 to March 31, |
| 2009) | 2010) |
+-----------------------------------+-----------------------------------+
| - | The Group had been conducting |
| | funding through various, |
| | expeditious and flexible |
| | measures, such as borrowing from |
| | financial institutions, issuance |
| | of corporate bonds and |
| | securitization of direct cash |
| | loans to customers. However, |
| | while financial situation was |
| | becoming more and more severe due |
| | to sub-prime loan issue in the |
| | U.S. and Lehman Brother's shock |
| | etc., funding environment |
| | surrounding the Group became more |
| | severe with financial needs for |
| | high-level interest refund claims |
| | and with concerns about impact of |
| | loan volume control that is |
| | expected to be introduced at the |
| | full enforcement of Money Lending |
| | Business Law scheduled by June |
| | 2010. In addition, the Company |
| | was downgraded against this |
| | background to give rise to |
| | conflict against covenant for |
| | early redemption and other events |
| | for a part of borrowings. |
| | In above mentioned situation, the |
| | Group considered various funding |
| | methods to improve cash position. |
| | As a result, in preparation for |
| | the early redemption requests of |
| | convertible bond-type bonds with |
| | subscription rights to shares, we |
| | conducted exchange offer of such |
| | bonds during the third quarter |
| | under review on a consolidated |
| | basis. The Group also conducted |
| | sale of listed securities and |
| | sale of a part of restructured |
| | loans'included in direct cash |
| | loans to customers. Despite these |
| | successful conducts, new funding |
| | continues to be extremely |
| | difficult due to extending |
| | economic slowdown, unpredictable |
| | future of the industry, |
| | high-level interest refund claims |
| | and additional downgrade. |
| | As explained above, a material |
| | question about the Group's |
| | going-concern assumption exists |
| | under current circumstances. |
| | The Group responds to said |
| | circumstances with approaches |
| | below: |
+-----------------------------------+-----------------------------------+
+-----------------------------------+-----------------------------------+
|Previous Consolidated Fiscal Year | Current Consolidated Fiscal Year |
| (from April 1, 2008 to March 31, | (from April 1, 2009 to March 31, |
| 2009) | 2010) |
+-----------------------------------+-----------------------------------+
| - | 1. Procurement of necessary funds |
| | and stabilizing cash position |
| | As severe funding environment is |
| | expected to continue for the time |
| | being, the Group endeavors to |
| | procure necessary funds for |
| | near-term operation by conducting |
| | measures such as transfer of real |
| | estate properties held by the |
| | Group and loans receivable, as |
| | well as strives to stabilize |
| | total cash position through |
| | efforts including reducing burden |
| | of existing bonds and considering |
| | strategic operational tie-up to |
| | secure new financing method. |
| | 2. Improvement of business |
| | streamlining |
| | The Group further advances |
| | existing business streamlining |
| | measures such as scrap-and-build |
| | reduction of branch offices as we |
| | have been conducting continuously |
| | and systematically, as well as |
| | making other efforts in business |
| | streamlining such as cost cut by |
| | reviewing contracts related to |
| | payments. |
| | Regarding transfer of real estate |
| | properties held by the Group |
| | among measures to procure |
| | necessary funds and to stabilize |
| | cash position mentioned above, we |
| | have selected properties for |
| | transfer from properties held by |
| | the Company and by TDS Co., Ltd.. |
| | We are at the stage of deciding |
| | sale price by bidding and |
| | currently progressing procedures |
| | toward the concluding of |
| | contracts. |
| | Regarding sale of loans |
| | receivable, we have surely |
| | progressed concrete discussions |
| | with counterparties as planned |
| | and have obtained a Letter of |
| | Intent to purchase loans |
| | receivable as a part of |
| | procedures to determine loans |
| | receivable in scope and transfer |
| | price. |
| | We consider that the question |
| | about the Group's going concern |
| | assumption can be eliminated by |
| | surely conducting further |
| | business streamlining measures in |
| | addition to continuously |
| | advancing measures for |
| | stabilizing total cash position. |
| | However, with economic conditions |
| | remaining severe and with |
| | influence of the revised Money |
| | Lending Business Law, it is not |
| | clear that funding environment |
| | surrounding the Group will change |
| | for better. Thus a material |
| | uncertainty about the Group's |
| | going-concern assumption is |
| | currently recognized. |
| | However, consolidated financial |
| | statements are made based on |
| | going-concern assumption and they |
| | do not reflect the material |
| | uncertainty about the Group's |
| | going-concern assumption. |
+-----------------------------------+-----------------------------------+
Significant Accounting Policies for Consolidated Financial Statements
+-----------------------------------+-----------------------------------+
|Previous Consolidated Fiscal Year | Current Consolidated Fiscal Year |
| (from April 1, 2008 to March 31, | (from April 1, 2009 to March 31, |
| 2009) | 2010) |
+-----------------------------------+-----------------------------------+
| 1. Scope of consolidation | 1. Scope of consolidation |
+-----------------------------------+-----------------------------------+
| (1)As of March 31, 2009, the | (1)As of March 31, 2010, the |
| number of consolidated | number of consolidated |
| subsidiaries were 8 as listed | subsidiaries were 8 as listed |
| below; | below; |
+-----------------------------------+-----------------------------------+
| Kyoritsu Estate Co., Ltd. | The same as the previous fiscal |
| TWJ VC Co., Ltd. | year. |
| Takefuji Capital Co., Ltd. | |
| Take One Co., Ltd. | |
| G.H Investment Co., Ltd. | |
| TWJ Co., Ltd. | |
| TWJ EURO Co., Ltd. | |
| TDS Co., Ltd. | |
| | |
| | |
| | |
| | |
| | |
| | |
+-----------------------------------+-----------------------------------+
| (2) Footnotes to the special | (2) Footnotes to the special |
| purpose entities with disclosure | purpose entities with disclosure |
| requirements | requirements |
| Outlines of the special purpose | The same as the previous fiscal |
| entities with disclosure | year. |
| requirements along with outlines | |
| of transactions with these | |
| special purpose entities are | |
| described in "Footnotes to the | |
| special purpose entities with | |
| disclosure requirements". | |
| | |
+-----------------------------------+-----------------------------------+
| 2. Application of the equity | 2. Application of the equity |
| method | method |
+-----------------------------------+-----------------------------------+
| No entities are subject to the | As of March 31, 2010, the number |
| equity method of accounting. | of equity method affiliate was 1 |
| | as below; |
| | METRO ASIA CAPITAL Co., Ltd |
| | METRO ASIA CAPITAL Co., Ltd was |
| | newly established and included in |
| | the scope of the equity method |
| | during the current consolidated |
| | fiscal year. |
+-----------------------------------+-----------------------------------+
| 3. The fiscal year of | 3. The fiscal year of |
| consolidated subsidiaries | consolidated subsidiaries |
+-----------------------------------+-----------------------------------+
| The fiscal year-end date of each | The same as the previous fiscal |
| subsidiary listed hereunder is as | year. |
| follows; | |
+-----------------------------------+-----------------------------------+
| TWJ Co., February | |
| Ltd. 28 | |
| Take One January | |
| Co., Ltd. 31 | |
| G.H December | |
| Investment 31 | |
| Co., Ltd. | |
| | |
+-----------------------------------+-----------------------------------+
+-----------------------------------+----------------------------------+
|Previous Consolidated Fiscal Year |Current Consolidated Fiscal Year |
| (from April 1, 2008 to March 31, |(from April 1, 2009 to March 31, |
| 2009) | 2010) |
+-----------------------------------+----------------------------------+
| 4. Significant accounting | 4. Significant accounting |
| policies | policies |
+-----------------------------------+----------------------------------+
| (1) Basis and method of valuation | (1) Basis and method of |
| of significant assets | valuation of significant assets |
| A Securities | A Securities |
+-----------------------------------+----------------------------------+
| Other securities: | Other securities: |
+-----------------------------------+----------------------------------+
| Where there is a market value; | Where there is a market value; |
+-----------------------------------+----------------------------------+
| Market value as determined by the | The same as the previous fiscal |
| quoted price at the end of the | year. |
| fiscal year. The difference | |
| between the acquisition cost and | |
| the market value, excluding the | |
| related income taxes, is included | |
| directly in net assets, and the | |
| cost of securities sold is | |
| computed using the moving average | |
| method. | |
+-----------------------------------+----------------------------------+
| Where there is no market value; | Where there is no market value; |
+-----------------------------------+----------------------------------+
| Cost is determined by the moving | The same as the previous fiscal |
| average method. | year. |
+-----------------------------------+----------------------------------+
| B Inventories | B Inventories |
+-----------------------------------+----------------------------------+
| Standard and method of | Standard and method of |
| inventories evaluation | inventories evaluation |
| As for raw materials and | As for raw materials and |
| supplies, last invoice cost | supplies, last invoice cost |
| method, which requires to write | method, which requires to write |
| down book value when there is a | down book value when there is a |
| downturn of profitability, is | downturn of profitability, is |
| adopted. | adopted. |
| (Changes in accounting method) | |
| From the current consolidated | |
| fiscal year, the Accounting | |
| Standard for Measurement of | |
| Inventories (ASBJ Statement No.9 | |
| July 5, 2006) is adopted. There | |
| is no impact of the said change. | |
| | |
+-----------------------------------+----------------------------------+
| (2) Depreciation of the fixed | (2) Depreciation of the fixed |
| assets | assets |
+-----------------------------------+----------------------------------+
| A Tangible fixed assets | A Tangible fixed assets |
+-----------------------------------+----------------------------------+
| Depreciation is mainly computed | The same as the previous fiscal |
| on the declining-balance method, | year. |
| based on the estimated useful | |
| lives of assets, except that the | |
| depreciation method for buildings | |
| (excluding auxiliary facilities | |
| attached to buildings), which | |
| were acquired on or after April | |
| 1, 1998, is the straight-line | |
| method. The range of useful lives | |
| is from 10 to 50 years for | |
| buildings and structures and from | |
| 4 to 15 years for equipment, | |
| furniture and fixtures. | |
+-----------------------------------+----------------------------------+
| B Intangible fixed assets | B Intangible fixed assets |
| | |
| Software costs for internal use | The same as the previous fiscal |
| are amortized on the | year. |
| straight-line method for 5 years, | |
| which is the estimated useful | |
| life. Other intangible fixed | |
| assets are amortized on the | (3) - |
| straight-line method. | |
| | |
| (3) Accounting for deferred | |
| assets | |
| | |
| All of bond issuance cost was | |
| posted as expenses at the time of | |
| payment. | |
+-----------------------------------+----------------------------------+
| |
| |
| |
| |
+-----------------------------------+----------------------------------+
+-----------------------------------+-----------------------------------+----------+
|Previous Consolidated Fiscal Year | Current Consolidated Fiscal Year | |
| (from April 1, 2008 to March 31, | (from April 1, 2009 to March 31, | |
| 2009) | 2010) | |
+-----------------------------------+-----------------------------------+----------+
| (4) Basis of calculating | (4) Basis of calculating | |
| allowances | allowances | |
+-----------------------------------+-----------------------------------+----------+
| A Allowance for credit losses | A Allowance for credit losses | |
+-----------------------------------+-----------------------------------+----------+
| In providing for possible credit | The same as the previous fiscal | |
| losses on direct cash loans, the | year. | |
| Company records an allowance for | | |
| loans (including delinquent loans | | |
| past due 30 days or less) based | | |
| on an actual percentage | | |
| write-offs. With respect to | | |
| specific loans classified as | | |
| doubtful such as delinquent loans | | |
| past due for longer periods, the | | |
| Company records an allowance for | | |
| credit losses thereon at the | B Allowance for losses for refund | |
| estimated uncollectible amounts | of interest received from | |
| based on the write-offs of such | customers | |
| loans with similar credit risk | The same as the previous fiscal | |
| ratings over a certain period. | year. | |
| | | |
| B Allowance for losses for | | |
| refund of interest received from | | |
| customers | | |
| In providing for possible losses | | |
| for refund of interest | | |
| received from customers exceeding | | |
| the upper limit of interest rate | C Allowance for bonuses | |
| prescribed under the Interest | The same as the previous fiscal | |
| Rate Restriction Law, the Company | year. | |
| records an allowance for losses | | |
| for refund of interest received | | |
| from customers based on the | | |
| anticipated losses for refund | | |
| reclaim from customers at the end | D Allowance for loss on | |
| of the current fiscal year. | transfer receivables | |
| | In providing for losses | |
| C Allowance for bonuses | stemmed from sale of loans | |
| In providing for bonuses payable | receivable, the Company records | |
| to employees, the Company records | an allowance for loss on transfer | |
| an allowance for current fiscal | of receivable based on the | |
| year portion thereof based on the | anticipated (estimated) losses at | |
| expected payment of bonuses for | the end of the current | |
| employees. | consolidated fiscal year. | |
| | | |
| D - | E Allowance for retirement | |
| | benefits of employees | |
| | The Company records an allowance | |
| | for retirement benefits based on | |
| | projected benefit obligations and | |
| | pension fund assets as at the | |
| E Allowance for retirement | balance sheets date. Actuarial | |
| benefits of employees | gain or loss is charged or | |
| The Company records an allowance | credited to income in the fiscal | |
| for retirement benefits based on | year next to the year when that | |
| projected benefit obligations and | was incurred. | |
| pension fund assets as at the | (Changes in accounting method) | |
| balance sheets date. Actuarial | | |
| gain or loss is charged or | | |
| credited to income in the fiscal | | |
| year next to the year when that | | |
| was incurred. | | |
+-----------------------------------+-----------------------------------+----------+
| | From the current fiscal year, the | |
| | Company has adopted the "Partial | |
| | Amendments to Accounting Standard | |
| | for Retirement Benefits (Part3)" | |
| | (ASBJ Statement No.19, July 31, | |
| | 2008). In addition, after | |
| | considering the criteria of | |
| | significance, there is no impact | |
| | due to the change because the | |
| | same discount rate as before is | |
| | used. | |
| | | |
+-----------------------------------+-----------------------------------+----------+
| | | |
+-----------------------------------+-----------------------------------+----------+
| F Allowance for retirement | F Allowance for retirement | |
| benefits of directors and | benefits of directors and | |
| corporate auditors | corporate auditors | |
| The Company records an allowance | The same as the previous fiscal | |
| for directors' and corporate | year. | |
| auditors' retirement benefits at | | |
| the amount that would be payable | | |
| if directors and corporate | | |
| auditors retired at the end of | | |
| the fiscal year in accordance | | |
| with the Company's internal | | |
| rules. | | |
+-----------------------------------+-----------------------------------+----------+
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
+-----------------------------------+-----------------------------------+----------+
| | | |
+-----------------------------------+-----------------------------------+----------+
|Previous Consolidated Fiscal Year | Current Consolidated Fiscal Year | |
| (from April 1, 2008 to March 31, | (from April 1, 2009 to March 31, | |
| 2009) | 2010) | |
+-----------------------------------+-----------------------------------+----------+
| (5) Accounting for hedging | (5) Accounting for hedging | |
| activities | activities | |
+-----------------------------------+-----------------------------------+----------+
| Interest-rate swap transaction | The same as the previous fiscal year. |
| and foreign currency swap | |
| transaction are concluded in | |
| order to hedge risks related to | |
| interest-rate fluctuations and | |
| foreign currency exchange | |
| fluctuations related to interest | |
| expenses for bonds and | |
| borrowings. Regarding | |
| interest-rate swap transaction, | |
| the exceptional accrual method is | |
| adopted because the transaction | |
| meets requirements of the said | |
| method provided by Japanese GAAP. | |
| Regarding foreign currency swap | |
| transaction, the specific | |
| allocation method is adopted | |
| because the transaction meets | |
| requirements of the said method | |
| provided by Japanese GAAP. | |
| As for evaluation method for | |
| effectiveness of hedging | |
| activities, evaluation is omitted | |
| since transactions meet | |
| requirements of the exception | |
| rule or the allocation rule for | |
| interest-rate swap. | |
| | |
+-----------------------------------+----------------------------------------------+
| (6) Other significant accounting | (6) Other significant accounting policies |
| policies for the preparation of | for the preparation of consolidated |
| consolidated financial statements | financial statements |
+-----------------------------------+----------------------------------------------+
| A Basis of recognition of | A Basis of recognition of interest income on |
| interest income on direct cash | direct cash loans |
| loans | |
+-----------------------------------+----------------------------------------------+
| Interest income on direct cash | The same as the previous fiscal year. |
| loans is recognized on an accrual | |
| basis. Accrued interest income is | |
| recognized at either the | |
| contracted rate applied to | |
| individual loan or the maximum | |
| rate permitted by the Interest | |
| Rate Restriction Law in Japan, | |
| whichever is lower. | |
+-----------------------------------+----------------------------------------------+
| B Accounting treatment of | B Accounting treatment of consumption tax |
| consumption tax | The same as the previous fiscal year. |
| Transactions subject to | |
| consumption tax for the Company | |
| and its one domestic subsidiary | |
| are stated at the amount which | |
| includes the related consumption | |
| tax. Those for other four | |
| domestic subsidiaries are stated | |
| at the amount which is net of the | |
| related consumption tax. | |
+-----------------------------------+----------------------------------------------+
| | |
+-----------------------------------+----------------------------------------------+
| 5. Revaluation of assets and | 5. Revaluation of assets and liabilities of |
| liabilities of consolidated | consolidated subsidiaries |
| subsidiaries | The same as the previous fiscal year. |
| The market method is fully | |
| applied to revaluation of assets | |
| and liabilities of consolidated | 6. Amortization of goodwill |
| subsidiaries. | |
| | |
| . Amortization of goodwill | |
+-----------------------------------+----------------------------------------------+
| None | The same as the previous fiscal year. |
| | |
+-----------------------------------+----------------------------------------------+
| 7. Cash and cash equivalents as | 7. Cash and cash equivalents as stated in |
| stated in consolidated statements | consolidated statements of cash flows |
| of cash flows | |
+-----------------------------------+----------------------------------------------+
| Cash and cash equivalents include | The same as the previous fiscal year. |
| cash in hand, bank deposits that | |
| can be withdrawn on demand and | |
| short-term investments with | |
| negligible risk of fluctuations | |
| in value and original maturity of | |
| three months or less. | |
+-----------------------------------+----------------------------------------------+
| | |
+-----------------------------------+-----------------------------------+----------+
+----------------------------------+----------------------------------+
| Changes in Significant Accounting Policies for Consolidated |
| Financial Statements |
+---------------------------------------------------------------------+
| Previous Consolidated Fiscal |Current Consolidated Fiscal Year |
| Year |(from April 1, 2009 to March 31, |
|(from April 1, 2008 to March 31, | 2010) |
| 2009) | |
+----------------------------------+----------------------------------+
| (Practical Solution on | - |
| Unification of Accounting | |
| Policies Applied to Foreign | |
| Subsidiaries for Consolidated | |
| Financial Statements) | |
| "Practical Solution on | |
| Unification of Accounting | |
| Policies Applied to Foreign | |
| Subsidiaries for Consolidated | |
| Financial Statements" (ASBJ | |
| Practical Issues Task Force | |
| No.18 May 17, 2006) is adopted | |
| from the current consolidated | |
| fiscal year and the adjustments | |
| necessary for consolidated | |
| financial results have been | |
| made. There is no impact of the | |
| said change. | |
+----------------------------------+----------------------------------+
| |
+----------------------------------+----------------------------------+
Reclassification
+---------------------------------+----------------------------------+
| Previous Consolidated Fiscal |Current Consolidated Fiscal Year |
| Year |(from April 1, 2009 to March 31, |
| (from April 1, 2008 to March | 2010) |
| 31, 2009) | |
+---------------------------------+----------------------------------+
| (Consolidated Statements of | (Consolidated Statements of |
| Income) | Income) |
+---------------------------------+----------------------------------+
| 1. Temporary employment | Interest on income taxes |
| expenses, which were separately | refunds, which were separately |
| posted until the previous | posted until the previous |
| consolidated fiscal year, are | consolidated fiscal year, are |
| included in "other" of other | included in "other" of other |
| operating expenses because they | operating expenses because they |
| are no longer largely | are no longer largely |
| influential in the amount. | influential in the amount. |
| Temporary employment expenses | Interest on income taxes refunds |
| for the current consolidated | for the current consolidated |
| fiscal year amounted 14 million | fiscal year amounted 1 million |
| yen. | yen. |
| 2. Profit on investments in | |
| partnerships, which was | |
| separately posted until the | |
| previous consolidated fiscal | |
| year, is included in "other | |
| non-operating income" because | |
| it is no longer largely | |
| influential in the amount. | |
| Profit on investments in | |
| partnerships of the current | |
| consolidated fiscal year | |
| amounted 5 million yen. | |
| | |
+---------------------------------+----------------------------------+
| | |
+---------------------------------+----------------------------------+
Footnotes to Consolidated Balance Sheets
+---------------------------------------------------------+----------------------------------+----------------------+----------+
| Previous Consolidated Fiscal Year (as of March | Current Consolidated Fiscal |
| 31, 2009) | Year (as of March 31, 2010) |
+--------------------------------------------------------------------------------------------+---------------------------------+
| *1. The assets pledged as security and the | *1. The assets pledged as |
| corresponding secured liabilities are as | security and the corresponding |
| follows: | secured liabilities are as |
| | follows: |
+--------------------------------------------------------------------------------------------+---------------------------------+
| | |
| Pledged assets (millions | Pledged assets (millions |
| of yen) | of yen) |
| Direct cash 302,003 | Direct cash 220,122 |
| loans to | loans to |
| customers | customers |
| | |
| Secured (millions | Secured (millions |
| liabilities of yen) | liabilities of yen) |
| Current portion 35,598 | Current portion 58,530 |
| of long-term 73,665 | of long-term |
| borrowings | borrowings |
| Long-term | |
| borrowings | |
| Total 109,263 | |
| | |
| | |
+--------------------------------------------------------------------------------------------+---------------------------------+
| Amounts stated above is the portion related to | Amounts stated above is the |
| the financing scheme by way of trusts of direct | portion related to the |
| cash loans to customers. | financing scheme by way of |
| | trusts of direct cash loans to |
| | customers. |
+--------------------------------------------------------------------------------------------+---------------------------------+
| *2. The total outstanding balance, 861,517 | *2. The total outstanding |
| million yen, of direct cash loans to customers | balance, 589,477 million yen, |
| only consists of unsecured loans to | of direct cash loans to |
| individuals. | customers only consists of |
| | unsecured loans to individuals. |
+--------------------------------------------------------------------------------------------+---------------------------------+
| 3. Regarding Direct cash loans to customers, | 3. Regarding Direct cash loans |
| once a credit limit has been established for a | to customers, once a credit |
| customer, the customer may access his or her | limit has been established for |
| credit line on a revolving basis. The unused | a customer, the customer may |
| portion of each customers credit line as of | access his or her credit line |
| the end of fiscal year was 391,516 million yen, | on a revolving basis. The |
| which included 204,127 million yen of the | unused portion of each |
| unused portion of credit line for customers, | customers credit line as of |
| who did not have any loan balance. The credit | the end of fiscal year was |
| line of a customer is either increased or | 380,576 million yen, which |
| decreased by the Company at its discretion | included 182,826 million yen of |
| based on the credit capacity of the customer. | the unused portion of credit |
| The Company believes that the total unused | line for customers, who did not |
| balance of each customers credit line does not | have any loan balance. The |
| significantly affect the Companys cash flows | credit line of a customer is |
| in the future. | either increased or decreased |
| | by the Company at its |
| | discretion based on the credit |
| | capacity of the customer. The |
| | Company believes that the total |
| | unused balance of each |
| | customers credit line does not |
| | significantly affect the |
| | Companys cash flows in the |
| | future. |
+--------------------------------------------------------------------------------------------+---------------------------------+
| *4. Short-term loans receivable are on | *4. Short-term loans receivable |
| repurchase agreement. | are on repurchase agreement. |
| Market value of financial assets (investment | Market value of financial |
| securities) received as securities related to | assets (investment securities) |
| these transactions was 49,992 million yen at | received as securities related |
| the end of the current consolidated fiscal | to these transactions was |
| year. | 19,989 million yen at the end |
| | of the current consolidated |
| | fiscal year. |
+--------------------------------------------------------------------------------------------+---------------------------------+
| *5. The amount of 28,837 million yen of | *5. The amount of 27,942 |
| accumulated depreciation for tangible fixed | million yen of accumulated |
| assets was offset. | depreciation for tangible fixed |
| | assets was offset. |
+--------------------------------------------------------------------------------------------+---------------------------------+
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
+--------------------------------------------------------------------------------------------+---------------------------------+
| Previous Consolidated | Current Consolidated Fiscal Year (as of | |
| Fiscal Year (as of March | March 31, 2010) | |
| 31, 2009) | | |
+---------------------------------------------------------+---------------------------------------------------------+----------+
| *6. Delinquent loans receivable | *6. Delinquent loans receivable | |
| | | |
| Loans to 48 | Loans to 60 | |
| bankrupt million | bankrupt million | |
| borrowers; yen | borrowers; yen | |
| | | |
+---------------------------------------------------------+---------------------------------------------------------+----------+
| Loans to bankrupt | Loans to bankrupt borrowers are loans under | |
| borrowers are loans | declaration of bankruptcy, reconstruction | |
| under declaration of | and similar proceedings and in addition, | |
| bankruptcy, | whose interest no longer accrues as income | |
| reconstruction and | since the principal or interest on such | |
| similar proceedings and | loans is unlikely to be repaid in view of | |
| in addition, whose | the considerable period of delinquencies of | |
| interest no longer | the principal and interest, or other | |
| accrues as income since | circumstances. | |
| the principal or | | |
| interest on such loans | | |
| is unlikely to be repaid | | |
| in view of the | | |
| considerable period of | | |
| delinquencies of the | | |
| principal and interest, | | |
| or other circumstances. | | |
+---------------------------------------------------------+---------------------------------------------------------+----------+
| | | |
| Delinquent 63,763 | Delinquent 74,635 | |
| loans; million | loans; million | |
| yen | yen | |
| | | |
| | | |
+---------------------------------------------------------+---------------------------------------------------------+----------+
| Delinquent loans are | Delinquent loans are loans whose interest | |
| loans whose interest no | no longer accrues as income since the | |
| longer accrues as income | principal or interest on such loans is | |
| since the principal or | unlikely to be repaid in view of the | |
| interest on such loans | considerable period of delinquencies of the | |
| is unlikely to be repaid | principal and interest, or other | |
| in view of the | circumstances, and do not include loans to | |
| considerable period of | bankrupt borrowers. | |
| delinquencies of the | | |
| principal and interest, | | |
| or other circumstances, | | |
| and do not include loans | | |
| to bankrupt borrowers. | | |
| | | |
+---------------------------------------------------------+---------------------------------------------------------+----------+
| Delinquent loans past due three | Delinquent loans past due three | |
| months or more; | months or more; | |
| 28,408 million yen | 23,997 million yen | |
| | | |
+---------------------------------------------------------+---------------------------------------------------------+----------+
| Restructured loans; | Restructured loans; 25,965 million yen | |
| 67,508 million yen | (23,482 million yen) | |
| (62,207 million yen) | | |
+---------------------------------------------------------+---------------------------------------------------------+----------+
| | | |
| Restructured loans are | Restructured loans are loans with | |
| loans with concessionary | concessionary interest rates, as well as | |
| interest rates, as well | loans with negotiated terms regarding the | |
| as loans with negotiated | timing of interest and principal payment. | |
| terms regarding the | Restructured loans do not include loans to | |
| timing of interest and | bankrupt borrowers, delinquent loans and | |
| principal payment. | delinquent loans past due three months or | |
| Restructured loans do | more. The loans classified as restructured | |
| not include loans to | loans include loans receivable current or | |
| bankrupt borrowers, | less than 31 days past due, the amount of | |
| delinquent loans and | which is indicated in the parenthesis as | |
| delinquent loans past | above. | |
| due three months or | | |
| more. The loans | | |
| classified as | | |
| restructured loans | | |
| include loans receivable | | |
| current or less than 31 | | |
| days past due, the | | |
| amount of which is | | |
| indicated in the | | |
| parenthesis as above. | | |
| | | |
+---------------------------------------------------------+---------------------------------------------------------+----------+
| 7. Certain covenants | 7. Certain covenants | |
+---------------------------------------------------------+---------------------------------------------------------+----------+
| Certain covenants were | Certain covenants were applied to 52,462 | |
| applied to 10,000 | million yen in bonds. The Company is | |
| million yen of | obliged to redeem the outstanding balance | |
| borrowings and 58,567 | in a lump-sum to creditors if the Company | |
| million yen of bonds. | fails to comply with the covenants, | |
| The Company is obliged | mentioned below: (The strictest conditions | |
| to repay or redeem the | are listed.) | |
| outstanding balance in a | | |
| lump-sum to creditors if | | |
| the Company fails to | | |
| comply with such | | |
| covenants as mentioned | | |
| below: (The strictest | | |
| conditions are listed.) | | |
+---------------------------------------------------------+---------------------------------------------------------+----------+
| (1) in case of the | (1) - | |
| balance of consolidated | | |
| shareholders equity | | |
| being less than 100,000 | | |
| million yen; | | |
+---------------------------------------------------------+---------------------------------------------------------+----------+
| (2) in case of the ratio | (2) in case of the ratio of consolidated | |
| of consolidated | shareholders equity against consolidated | |
| shareholders equity | total assets being less than 10%; | |
| against consolidated | | |
| total assets being less | | |
| than 10%; | | |
+---------------------------------------------------------+---------------------------------------------------------+----------+
| (3) in case of the | (3) in case of the balance of secured | |
| balance of secured | borrowings, excluding those secured by real | |
| borrowings, excluding | estate, against total current assets being | |
| those secured by real | more than 80%; | |
| estate, against total | | |
| current assets being | *8.Investment in the affiliate is as below: | |
| more than 80%; | Investment securities (equity) 1,281 | |
| | million yen | |
| | | |
| - | | |
| | | |
+---------------------------------------------------------+----------------------------------+----------------------+----------+
Footnotes to Consolidated Statements of Income
+-----------------------------------+-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------+
|Previous Consolidated Fiscal Year | Current Consolidated Fiscal Year |
| (from April 1, 2008 to March 31, | (from April 1, 2009 to March 31, |
| 2009) | 2010) |
+-----------------------------------+-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------+
| 1. Basis for classification of | 1. Basis for classification of |
| financial revenues and expenses | financial revenues and expenses |
| on the consolidated statements of | on the consolidated statements of |
| income | income |
+-----------------------------------+-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------+
| (1) Financial revenues stated as | (1) Financial revenues stated as |
| operating revenues; | operating revenues; |
+-----------------------------------+-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------+
| Include all financial revenues | The same as the previous fiscal |
| excluding dividends and interest | year. |
| and so forth received on | |
| investments in securities. | |
+-----------------------------------+-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------+
| (2) Financial expenses stated as | (2) Financial expenses stated as |
| operating expenses; | operating expenses; |
+-----------------------------------+-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------+
| Include all financial expenses | The same as the previous fiscal |
| excluding interest payable and so | year. |
| forth which has no relationship | |
| with operating revenues. | |
| | *2. Gain on sales of fixed assets |
| 2. - | |
| | Gain on sales of fixed assets is |
| | due to the sale of a parking lots |
| | etc. and a major item is 808 |
| | million yen of gain from the sale |
| | of land. |
| | |
+-----------------------------------+-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------+
| *3. Impairment loss | *3. Impairment loss |
| | |
| Impairment loss of 211 million | The Company conventionally adopted different methods to divide assets into groups for business assets and unutilized assets; regarding business assets, they were divided into groups based on the operation, regarding real estate properties for rent and unutilized assets (including real estate properties for investment), each property was labeled for dividing into groups. However, since a part of fixed assets are expected to be transferred as funding measures, we decided to label each property of the assets subject to the transfer regardless of the usage etc. for the current fiscal year. |
| yen for the telephone rights | Regarding real estate properties for rent and unutilized assets, the book value was written down to recoverable value due to factors such as continuing decline in land price, while the book value of assets subject to transfer was written down due to changes of usage which materially lowered the recoverable value. Thus 10,601 million yen of impairment loss, the amount equals to decreases mentioned, was recorded. |
| related to closing of branch | Major factors of impairment loss are 8,842 million yen for land, 1,214 million yen for building and 462 million yen for equipment |
| offices and accrual expense of 72 | Recoverable value is based on net sale price, which is calculated by deducting expenses for sale from bidding price for sale (for some assets, real estate appraisal value quoted by real estate appraisers is used.). |
| million yen related to the | (million of yen) |
| closing for the next consolidated | Use Classification Location Amount |
| fiscal year were posted. | Assets Land,buildings Kyoto,Saitama 5,727 |
| In addition, due to the | for and structures and other |
| consecutive decline in land | commercial etc. |
| prices for a part of the assets | land |
| for rent etc., the carrying | Assets Land,buildings Tokyo,Hokkaido 4,220 |
| amount of those assets were | for and structures and other |
| written down to the value that is | rent etc. |
| estimated to be recoverable, | Assets Land,buildings Kyoto,Tokyo 654 |
| resulting in an impairment loss | not in and structures and other |
| amounting 102 million yen | use etc. |
| | Total 10,601 |
| | |
+-----------------------------------+-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------+
| | |
| | Impairment loss related to assets |
| | subject to transfer is 8,718 |
| | million yen among above amount. |
+-----------------------------------+-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------+
+-----------------------------------+-----------------------------------+
|Previous Consolidated Fiscal Year | Current Consolidated Fiscal Year |
| (from April 1, 2008 to March 31, | (from April 1, 2009 to March 31, |
| 2009) | 2010) |
+-----------------------------------+-----------------------------------+
| *4. Loss on closing of branch | *4. Loss on closing of branch |
| offices | offices |
| | |
|Loss on closing of branch offices |Loss on closing of branch offices |
| of 1,605 million yen, for | of 616 million yen, for realized |
| realized closing expenses during | closing expenses during the |
| the current consolidated fiscal |current consolidated fiscal year, |
| year, and accrual closing | and accrual closing expenses of |
| expenses of 291 million yen for | 988 million yen for the next |
|the next consolidated fiscal year | consolidated fiscal year were |
|were recorded due to the decision |recorded due to the decision made |
| made for the cease of manned and | for the cease of manned and |
| unmanned branch offices and | unmanned branch offices and |
| reorganization of regional | reorganization of regional |
| branches etc. | branches etc. |
| | |
| | |
| *5. Loss on commitment facility | 5. - |
| cancellation | |
| | |
| This is a loss due to | |
| cancellation of a commitment | |
| facility by way of true sale and | *6. Loss on transfer of |
| due to early repayment. | receivables |
| | |
| - | Loss on transfer of receivables |
| | is a loss due to sale of a part |
| | of the Company's loans |
| | receivable. |
| - | |
| | *7. Provision for loss on |
| | transfer of receivables |
| | |
| |Provision for loss on transfer of |
| | receivables is the amount equals |
| | to expected loss related to |
| | transfer of loans receivable of |
| |the Company reserved and added to |
| | the allowance for loss on |
| | transfer of receivables. |
| | |
+-----------------------------------+-----------------------------------+
| | |
+-----------------------------------+-----------------------------------+
Footnotes to Consolidated Statement of Changes in Net Assets
Previous Consolidated Fiscal Year (from April 1, 2008 to March 31, 2009)
1. Type and the total number of issued stocks and treasury stocks
+--------------+------------+------------+---------------+---------------+
| | The number | The number | The number | The number |
| | at the end | increased | decreased | at the end |
| | of | during | during | of current |
| | previous | current | current | fiscal |
| | fiscal | fiscal | fiscal | year(thousand |
| | year | year | year(thousand | shares) |
| | (thousand | (thousand | shares) | |
| | shares) | shares) | | |
+--------------+------------+------------+---------------+---------------+
| Issued | | | | |
| stocks | | | | |
+--------------+------------+------------+---------------+---------------+
| Common | 147,295 | - | 3,000 | 144,295 |
| stocks Note2 | | | | |
+--------------+------------+------------+---------------+---------------+
| Total | 147,295 | - | 3,000 | 144,295 |
+--------------+------------+------------+---------------+---------------+
| Treasury | | | | |
| stocks | | | | |
+--------------+------------+------------+---------------+---------------+
| Common | 9,647 | 2,729 | 3,000 | 9,375 |
| stocks | | | | |
| Note1,2 | | | | |
+--------------+------------+------------+---------------+---------------+
| Total | 9,647 | 2,729 | 3,000 | 9,375 |
+--------------+------------+------------+---------------+---------------+
Notes: 1. The factors of the number increased by 2,729 thousand shares are
acquisition of treasury stock based on the resolution of the board of directors'
meeting of 2,729 thousand shares and purchase of under unit stocks of 0 thousand
shares.
2. Decrease by 3,000 thousand shares of common stock of issued stocks and of
treasury stocks is due to cancellation of treasury stocks based on the
resolution of the board of directors' meeting.
2. Share subscription rights and treasury stocks
+----------+--------------+--------------+----------+------------+------------+------------+-----------+
| Item | Details of | Type | The number of shares for | Amount |
| | | of | subscription rights | at the |
| |subscription | shares | to shares (shares) | end of |
| | rights | for | | current |
| | to shares |subscription | | fiscal |
| | | rights | | year |
| | | to shares | |(millions |
| | | | | of yen) |
+ + + +-------------------------------------------------+ +
| | | | March | | Increase | Decrease | March |
| | | |31, 2008 | | | | 31, 2009 |
+----------+--------------+--------------+----------+------------+------------+------------+-----------+
| The | Euro-yen | Common | - | 29,761,904 | - | 29,761,904 | - |
| Company | convertible | stocks | | | | | |
| (Parent | bond-type | | | | | | |
|company) | bonds with | | | | | | |
| |Subscription | | | | | | |
| | rights to | | | | | | |
| | shares due | | | | | | |
| | 2018 | | | | | | |
+----------+--------------+--------------+----------+------------+------------+------------+-----------+
| The |Subscription | - | - | - | - | - | 141 |
| Company | rights | | | | | | |
| (Parent |to shares as | | | | | | |
|company) | stock | | | | | | |
| | options | | | | | | |
+----------+--------------+--------------+----------+------------+------------+------------+-----------+
| Total | - | - | - | - | - | 141 |
+----------+--------------+--------------+----------+------------+------------+------------+-----------+
Note: The first day of the exercise period has not arrived with regard to
subscription rights to shares as stock options.
3. Items regarding dividends
(1) Dividends paid
+---------------+----------+-----------+-----------+-----------+-----------+
| Resolution | Type of | Total |Dividends | Record |Effective |
| | stocks | amount |per share | date | date |
| | | of | (yen) | | |
| | |dividends | | | |
| | |(millions | | | |
| | | of yen) | | | |
+---------------+----------+-----------+-----------+-----------+-----------+
| The Annual | Common | 12,388 | 90 |March 31, | June 30, |
| General | stocks | | | 2008 | 2008 |
| Shareholders' | | | | | |
| Meeting | | | | | |
| at June 27, | | | | | |
| 2008 | | | | | |
+---------------+----------+-----------+-----------+-----------+-----------+
| Board of | Common | 4,076 | 30 |September | December |
| Directors' | stocks | | | 30, 2008 | 5, 2008 |
| Meeting | | | | | |
| at | | | | | |
| November | | | | | |
| 6, 2008 | | | | | |
+---------------+----------+-----------+-----------+-----------+-----------+
(2) Dividends after the end of current fiscal year of which record date belongs
to current fiscal year
+---------------+--------+-----------+-----------+-----------+----------+-----------+
| Resolution | Type | Total | Source |Dividends | Record |Effective |
| | of | amount | of |per share | date | date |
| |stocks | of |dividends | (yen) | | |
| | |dividends | | | | |
| | |(millions | | | | |
| | | of yen) | | | | |
+---------------+--------+-----------+-----------+-----------+----------+-----------+
| The |Common | 2,698 | Retained | 20 | March | June |
| Annual |stocks | | earnings | |31, 2009 | 29, 2009 |
| General | | | | | | |
| Shareholders' | | | | | | |
| Meeting | | | | | | |
| at June 26, | | | | | | |
| 2009 | | | | | | |
+---------------+--------+-----------+-----------+-----------+----------+-----------+
Current Consolidated Fiscal Year (from April 1, 2009 to March 31, 2010)
1. Type and the total number of issued stocks and treasury stocks
+--------------+------------+------------+---------------+---------------+
| | The number | The number | The number | The number |
| | at the end | increased | decreased | at the end |
| | of | during | during | of current |
| | previous | current | current | fiscal |
| | fiscal | fiscal | fiscal | year(thousand |
| | year | year | year(thousand | shares) |
| | (thousand | (thousand | shares) | |
| | shares) | shares) | | |
+--------------+------------+------------+---------------+---------------+
| Issued | | | | |
| stocks | | | | |
+--------------+------------+------------+---------------+---------------+
| Common | 144,295 | - | - | 144,295 |
| stocks | | | | |
+--------------+------------+------------+---------------+---------------+
| Total | 144,295 | - | - | 144,295 |
+--------------+------------+------------+---------------+---------------+
| Treasury | | | | |
| stocks | | | | |
+--------------+------------+------------+---------------+---------------+
| Common | 9,375 | 0 | - | 9,375 |
| stocks | | | | |
+--------------+------------+------------+---------------+---------------+
| Total | 9,375 | 0 | - | 9,375 |
+--------------+------------+------------+---------------+---------------+
Note: The increase of treasury stock of 0 thousand shares reflects the purchase
of shares of less than one share unit.
2. Share subscription rights and treasury stocks
+----------+--------------+--------------+------------+-----------+------------+------------+-----------+
| Item | Details of | Type of | The number of shares for | Amount |
| | | shares | subscription rights | at the |
| |subscription | for | to shares (shares) | end of |
| | rights |subscription | | current |
| | to shares | rights | | fiscal |
| | | to shares | | year |
| | | | |(millions |
| | | | | of yen) |
+ + + +--------------------------------------------------+ +
| | | | March | | Increase | Decrease | March |
| | | | 31, 2009 | | | | 31, 2010 |
+----------+--------------+--------------+------------+-----------+------------+------------+-----------+
| The | Euro-yen | Common | 29,761,904 | - | 11,734,694 | 18,027,210 | - |
| Company | convertible | stocks | | | | | |
| (Parent | bond-type | | | | | | |
|company) | bonds with | | | | | | |
| |Subscription | | | | | | |
| | rights to | | | | | | |
| | shares due | | | | | | |
| | 2018 | | | | | | |
+----------+--------------+--------------+------------+-----------+------------+------------+-----------+
| The |Subscription | - | - | - | - | - | 202 |
| Company | rights | | | | | | |
| (Parent |to shares as | | | | | | |
|company) | stock | | | | | | |
| | options | | | | | | |
+----------+--------------+--------------+------------+-----------+------------+------------+-----------+
| Total | - | - | - | - | - | 202 |
+----------+--------------+--------------+------------+-----------+------------+------------+-----------+
Note: The decrease of Euro-yen convertible bond-type bonds with subscription
rights to shares due 2018 by 11,734,694 shares reflects the cancellation of
convertible bond-type bonds with subscription rights to shares due to their
retirement by purchase.
3. Items regarding dividends
(1) Dividends paid
+---------------+----------+-----------+-----------+-----------+-----------+
| Resolution | Type of | Total |Dividends | Record |Effective |
| | stocks | amount |per share | date | date |
| | | of | (yen) | | |
| | |dividends | | | |
| | |(millions | | | |
| | | of yen) | | | |
+---------------+----------+-----------+-----------+-----------+-----------+
| The Annual | Common | 2,698 | 20 |March 31, | June 29, |
| General | stocks | | | 2009 | 2009 |
| Shareholders' | | | | | |
| Meeting | | | | | |
| at June 26, | | | | | |
| 2009 | | | | | |
+---------------+----------+-----------+-----------+-----------+-----------+
| Board of | Common | 2,024 | 15 |September | December |
| Directors' | stocks | | | 30, 2009 | 4, 2009 |
| Meeting | | | | | |
| at | | | | | |
| November | | | | | |
| 5, 2009 | | | | | |
+---------------+----------+-----------+-----------+-----------+-----------+
(2) Dividends after the end of current fiscal year of which record date belongs
to current fiscal year
+---------------+--------+-----------+-----------+-----------+----------+-----------+
| Resolution | Type | Total | Source |Dividends | Record |Effective |
| | of | amount | of |per share | date | date |
| |stocks | of |dividends | (yen) | | |
| | |dividends | | | | |
| | |(millions | | | | |
| | | of yen) | | | | |
+---------------+--------+-----------+-----------+-----------+----------+-----------+
| The |Common | 2,024 | Retained | 15 | March | June |
| Annual |stocks | | earnings | |31, 2010 | 30, 2010 |
| General | | | | | | |
| Shareholders' | | | | | | |
| Meeting | | | | | | |
| at June 29, | | | | | | |
| 2010 | | | | | | |
+---------------+--------+-----------+-----------+-----------+----------+-----------+
Footnotes to Consolidated Statements of Cash Flows
+-----------------------------------+-----------------------------------+
|Previous Consolidated Fiscal Year | Current Consolidated Fiscal Year |
| (from April 1, 2008 to March 31, | (from April 1, 2009 to March 31, |
| 2009) | 2010) |
+-----------------------------------+-----------------------------------+
| *1. Relationship between cash and | *1. Relationship between cash and |
| cash equivalents at the end of | cash equivalents at the end of |
| the consolidated fiscal year and | the consolidated fiscal year and |
| consolidated balance sheets items | consolidated balance sheets items |
| as of March 31, 2009; | as of March 31, 2010; |
+-----------------------------------+-----------------------------------+
| (millions | (millions |
| of yen) | of yen) |
| Cash and deposits | Cash and deposits |
| 47,871 | 40,372 |
| Short-term loans receivable | Short-term loans receivable |
| (Repurchase agreement) | (Repurchase agreement) |
| 49,992 | 19,989 |
| Cash and cash equivalents | Cash and cash equivalents |
| 97,862 | 60,361 |
| | |
| | |
| . - | 2. Significant transactions other |
| | than funds |
| | Exchange offer of straight bonds |
| | in exchange for convertible |
| | bond-type bonds with subscription |
| | rights to shares |
| | (millions of yen) |
| | Decrease in convertible bond-type |
| | bonds |
| | with subscription rights to |
| | share 10,075 |
| | Increase in straight bonds |
| | 10,075 |
| | |
| | |
+-----------------------------------+-----------------------------------+
Footnotes to Lease Transactions
None
Footnotes to financial instruments
Some parts are omitted as disclosing such information in the brief statement of
financial results is not considered
to be significantly necessary.
Current Consolidated Fiscal Year (from April 1, 2009 to March 31, 2010)
1. Conditions of financial instruments
The core business of the Group is unsecured loans without guarantees to
consumers or customers. Considering the market situations, the Group raises the
funds for the core business mostly through bank borrowings and issuance of
bonds.
Regarding direct cash loans to customers and installment receivables, which are
our operating receivables, payment on different due dates and uncollected
outstanding balance are managed according to internal credit control rules, as
well as striving to reduce uncollectibility risk with a system that periodically
reviews customers' credit information.
The Group makes use of interest rate swap transactions to hedge its exposure
of interest rate fluctuations against a part of borrowings for the purpose of
stabilizing the Group's income. The Group also makes use of forward exchange
contract to hedge its exposure of foreign currency exchange rate fluctuations
against bonds denominated in foreign currency, which are issued by the Group.
Investment securities mostly consist of stocks of companies, which have
business relationship with the Group. The Group periodically monitors financial
conditions of the issuers, quoted market price and exchange fluctuations.
The Company uses financial derivative transactions in order to reduce its
exposure to market risks from fluctnations in interest rate and foreign currency
exchange rate. The Company does not hold or issue financial derivative
instruments for speculative purposes.
2. Fair value of financial instruments
The carrying amount on the consolidated balance sheet, fair value and
differences, as of March 31, 2010, are as follows. In addition, financial
instruments, of which it is extremely difficult to measure the fair value, are
not included.
(millions of yen)
+-+--------------+------------------+------------------+------------------+
| | | Book value on | Market value | Unrealized |
| | | consolidated | | gain or loss |
| | | balance sheets | | |
+-+--------------+ + + +
| | | | | |
+-+--------------+------------------+------------------+------------------+
| (1) Cash and | 40,372 | 40,372 | - |
| deposits | | | |
+----------------+------------------+------------------+------------------+
| (2) Direct | 589,477 | | |
| cash loans to | | | |
| customers | | | |
+----------------+------------------+------------------+------------------+
| Allowance for | -60,609 | | |
| credit losses | | | |
| (*1) | | | |
+----------------+------------------+------------------+------------------+
| | 528,868 | 583,033 | 54,166 |
+----------------+------------------+------------------+------------------+
| (3) Accrued | 5,693 | 5,693 | - |
| interest | | | |
| income | | | |
| on direct cash | | | |
| loans to | | | |
| customers | | | |
+----------------+------------------+------------------+------------------+
| (4) Investment | 1,525 | 1,525 | - |
| securities | | | |
+----------------+------------------+------------------+------------------+
| Total assets | 576,458 | 630,624 | 54,166 |
+----------------+------------------+------------------+------------------+
| (1) Current | 9,068 | 6,302 | -2,766 |
| portion of | | | |
| bonds | | | |
+----------------+------------------+------------------+------------------+
| (2) Current | 80,406 | 78,474 | -1,932 |
| portion of | | | |
| long-term | | | |
| borrowings | | | |
+----------------+------------------+------------------+------------------+
| (3) Bonds | 83,470 | 40,508 | -42,961 |
| payable | | | |
+----------------+------------------+------------------+------------------+
| (4) | 42,400 | 36,676 | -5,724 |
| Convertible | | | |
| bond-type | | | |
| bonds with | | | |
| subscription | | | |
| rights to | | | |
| shares | | | |
+----------------+------------------+------------------+------------------+
| (5) Long-term | 38 | 34 | -4 |
| borrowings | | | |
+----------------+------------------+------------------+------------------+
| Total | 215,381 | 161,994 | -53,387 |
| liabilities | | | |
+----------------+------------------+------------------+------------------+
| Derivative | - | - | - |
| transactions | | | |
| (*2) | | | |
+-+--------------+------------------+------------------+------------------+
(*1) Allowance for credit losses is deducted.
(*2) Derivative assets and liabilities are on net basis.
Notes : 1. Fair value measurement of financial instruments, securities and
derivative transactions
Assets
(1) Cash and deposits (3) Accrued interest income on direct cash loans to
customers
The carrying amount approximates fair value because of the short maturity of
these instruments.
(2) Direct cash loans to customers
The fair value of direct cash loans to customers is the present value of future
cash flow of the receivables. The receivables are categorized by certain
periods and divided into groups according to credit risks. Future cash flow is
calculated for each group and discounted by a rate that is the sum of
appropriate index rate, such as governmental bonds' coupon, and credit spread.
Regarding doubtful receivables, the fair value is the present value of expected
cash flow, discounted by the same rate.
(4) Investment securities
The fair value of equity securities equals quoted market price, if
available. Marketable and investment securities based on holding purpose are
described in "Footnotes to investment securities."
Liabilities
(1) Current portion of bonds (4) Convertible bond-type bonds with subscription
rights to shares
The fair value is calculated based on quoted market price.
(2) Current portion of long-term borrowings (5) Long-term borrowings
The fair value is the present value of the total of principal and
coupon, discounted by the rate that is the sum of appropriate index rate, such
as governmental bonds' coupon, and credit spread.
(3) Bonds payable
The fair value is calculated based on quoted market price. A part of bonds is
subject to specific allocation method for forward exchange contract etc. The
fair value of the bonds including the fair value of the derivative transaction
is disclosed.
Derivative transaction
Interest rate swap transactions, to which exceptional accrual method is
applied, are included in long-term borrowings and bonds hedged by them for
accounting purpose. Therefore, the fair value is included in the fair value of
such long-term borrowings and bonds and is disclosed as a part of it. (Please
refer to (2) and (5) of "Liabilities" above.)
Transaction, to which specific allocation method is applied, such as
forward exchange contract etc. is included in bonds hedged by it for accounting
purpose. Therefore, the fair value is included in such bonds and is disclosed
as a part of it. Please refer to (3) of "Liabilities" above.
2. Regarding unlisted equity securities (4,099 million yen on the consolidated
balance sheet), they are not included in (4) Investment securities of "Assets"
because there is no market value and it is extremely difficult to measure the
fair value.
(Additional information)
Starting the current consolidated fiscal year, "Accounting Standard for
Financial Instruments" (ASBJ Statement No. 10, March 10, 2008) and its
"Implementation guidance on disclosures about fair value o financial
instruments" (ASBJ Guidance No. 19, March 10, 2008) are applied.
Footnotes to Investment securities
Previous Consolidated Fiscal Year (as of March 31, 2009)
+-------------+-+-----------------+-----------------+-----------------+-----------------+
| | | Previous Consolidated Fiscal Year |
| | | (as of March 31, 2009) |
+-------------+-------------------+-----------------------------------------------------+
| | | Securities | Acquisition | Book value on | Unrealized |
| | | | cost | consolidated | gain or loss |
| | | | | balance sheets | |
+-------------+-+-----------------+ + + +
| | | | | | |
+-------------+-+-----------------+-----------------+-----------------+-----------------+
| Book | (1) Stocks | 787 | 1,024 | 236 |
| value | | | | |
| greater | | | | |
| than | | | | |
| acquisition | | | | |
| cost | | | | |
+ +-------------------+-----------------+-----------------+-----------------+
| | (2) Bonds | | | |
+ +-------------------+-----------------+-----------------+-----------------+
| | National | - | - | - |
| | or local | | | |
| | government | | | |
| | bonds | | | |
+ +-------------------+-----------------+-----------------+-----------------+
| | Corporate | - | - | - |
| | bonds | | | |
+ +-------------------+-----------------+-----------------+-----------------+
| | Other | - | - | - |
+ +-------------------+-----------------+-----------------+-----------------+
| | (3) Other | 25 | 27 | 2 |
+ +-------------------+-----------------+-----------------+-----------------+
| | Subtotal | 812 | 1,051 | 239 |
+-------------+-------------------+-----------------+-----------------+-----------------+
| Book | (1) Stocks | 7,794 | 6,038 | -1,756 |
| value | | | | |
| equal | | | | |
| to or | | | | |
| smaller | | | | |
| than | | | | |
| acquisition | | | | |
| cost | | | | |
+ +-------------------+-----------------+-----------------+-----------------+
| | (2) Bonds | | | |
+ +-------------------+-----------------+-----------------+-----------------+
| | National | - | - | - |
| | or local | | | |
| | government | | | |
| | bonds | | | |
+ +-------------------+-----------------+-----------------+-----------------+
| | Corporate | - | - | - |
| | bonds | | | |
+ +-------------------+-----------------+-----------------+-----------------+
| | Other | - | - | - |
+ +-------------------+-----------------+-----------------+-----------------+
| | (3) Other | - | - | - |
+ +-------------------+-----------------+-----------------+-----------------+
| | Subtotal | 7,794 | 6,038 | -1,756 |
+-------------+-------------------+-----------------+-----------------+-----------------+
| Total | 8,606 | 7,089 | -1,517 |
+-------------+-+-----------------+-----------------+-----------------+-----------------+
2. Available-for-sale securities sold during previous consolidated fiscal year
(millions of yen)
+----------------------+----------------------+----------------------+
| Previous Consolidated Fiscal Year |
| (from April 1, 2008 to March 31, 2009) |
+--------------------------------------------------------------------+
| Proceeds | Realized gains on | Realized losses on |
| | sales | sales |
+----------------------+----------------------+----------------------+
| 1,499 | 688 | 124 |
+----------------------+----------------------+----------------------+
3. Details of principal securities which are not stated at market quotations
(millions of yen)
+-------------------+-------------------+-------------------+-------------------+
| Securities | Previous Consolidated Fiscal Year |
| | (as of March 31, 2009) |
+ +-----------------------------------------------------------+
| | Acquisition | Book value on | Unrealized |
| | cost | consolidated | gain or loss |
| | | balance sheets | |
+-------------------+-------------------+-------------------+-------------------+
| Other securities | | | |
+-------------------+-------------------+-------------------+-------------------+
| Unlisted stocks | 3,834 | 3,425 | -409 |
| excluding those | | | |
| traded | | | |
| over-the-counter | | | |
+-------------------+-------------------+-------------------+-------------------+
| Certificate of | - | - | - |
| deposit | | | |
+-------------------+-------------------+-------------------+-------------------+
| Other | 475 | 467 | -8 |
+-------------------+-------------------+-------------------+-------------------+
Notes: 1. Difference between acquisition cost and book value is unrealized gain
or loss resulting from foreign currency translation on the securities
denominated in foreign currencies at the end of the consolidated fiscal year.
2. "Other" of other securities are stocks held through investment partnerships.
4. Short-term investment securities impaired
In the previous consolidated fiscal year, 763 million yen of impairment
regarding stocks with market quotations of available-for-sale securities, 3
million yen of impairment regarding stocks without market quotations of
available-for-sale securities were posted respectively.
Among the said stocks with market quotation, ones which were written down are as
follows;
-those whose market quotation decreased by 50% or more of acquisition cost
-those whose market quotation decreased by 30% or more and less than 50% of
acquisition cost excluding ones which are judged to be recoverable
Current Consolidated Fiscal Year(as of March 31, 2010)
+---------+-+-----------------+-----------------+-----------------+-----------------+
| | | Current Consolidated Fiscal Year |
| | | (as of March 31, 2010) |
+---------+-------------------+-----------------------------------------------------+
| | | Securities | Book value on | Acquisition | Unrealized |
| | | | consolidated | cost | gain or loss |
| | | | balance sheets | | |
+---------+-+-----------------+ + + +
| | | | | | |
+---------+-+-----------------+-----------------+-----------------+-----------------+
| Market | (1) Stocks | 259 | 220 | 39 |
| value | | | | |
| greater | | | | |
| than | | | | |
| book | | | | |
| value | | | | |
+ +-------------------+-----------------+-----------------+-----------------+
| | (2) Bonds | | | |
+ +-------------------+-----------------+-----------------+-----------------+
| | National | - | - | - |
| | or local | | | |
| | government | | | |
| | bonds | | | |
+ +-------------------+-----------------+-----------------+-----------------+
| | Corporate | - | - | - |
| | bonds | | | |
+ +-------------------+-----------------+-----------------+-----------------+
| | Other | - | - | - |
+ +-------------------+-----------------+-----------------+-----------------+
| | (3) Other | 34 | 25 | 10 |
+ +-------------------+-----------------+-----------------+-----------------+
| | Subtotal | 294 | 245 | 49 |
+---------+-------------------+-----------------+-----------------+-----------------+
| Market | (1) Stocks | 1,231 | 1,705 | -474 |
| value | | | | |
| equal | | | | |
| to or | | | | |
| smaller | | | | |
| than | | | | |
| book | | | | |
| value | | | | |
+ +-------------------+-----------------+-----------------+-----------------+
| | (2) Bonds | | | |
+ +-------------------+-----------------+-----------------+-----------------+
| | National | - | - | - |
| | or local | | | |
| | government | | | |
| | bonds | | | |
+ +-------------------+-----------------+-----------------+-----------------+
| | Corporate | - | - | - |
| | bonds | | | |
+ +-------------------+-----------------+-----------------+-----------------+
| | Other | - | - | - |
+ +-------------------+-----------------+-----------------+-----------------+
| | (3) Other | - | - | - |
+ +-------------------+-----------------+-----------------+-----------------+
| | Subtotal | 1,231 | 1,705 | -474 |
+---------+-------------------+-----------------+-----------------+-----------------+
| Total | 1,525 | 1,950 | -425 |
+---------+-+-----------------+-----------------+-----------------+-----------------+
Note: Unlisted stocks (book value on consolidated balance sheets: 2,490 million
yen) and stocks held through investment partnerships (book value on consolidated
balance sheets: 328 million yen) are not included in "Other securities" above
because they don't have market prices and their market values are deemed
difficult to identify.
2. Available-for-sale securities sold during current consolidated fiscal year
(millions of yen)
+----------------+----------------+----------------+----------------+
| Current Consolidated Fiscal Year |
| (from April 1, 2009 to March 31, 2010) |
+-------------------------------------------------------------------+
| Securities | Proceeds |Realized gains | Realized |
| | | on sales | losses on |
| | | | sales |
+----------------+----------------+----------------+----------------+
| Stocks | 6,210 | 668 | -900 |
+----------------+----------------+----------------+----------------+
3. Short-term investment securities impaired
In the current consolidated fiscal year, 289 million yen of impairment regarding
stocks with market quotations of available-for-sale securities, 542 million yen
of impairment regarding stocks without market quotations of available-for-sale
securities were posted respectively.
Among the said stocks with market quotation, ones which were written down are as
follows;
-those whose market quotation decreased by 50% or more of acquisition cost
-those whose market quotation decreased by 30% or more and less than 50% of
acquisition cost excluding ones which are judged to be recoverable
Footnotes to Derivative Transactions
Previous Consolidated Fiscal Year (from April 1, 2008 to March 31, 2009)
1. The conditions of Derivative Transactions
(1) Transactions
The Company uses financial derivative transactions, which comprise interest swap
transactions and currency swap transactions.
(2) Company's policy
The Company uses financial derivative transactions in order to reduce its
exposure to market risks from fluctuations in interest rate, foreign currency
exchange rate and does not hold or issue financial derivative instruments for
speculative purposes.
(3) Purposes
The Company makes use of interest swap transactions and currency swap
transactions to hedge its exposure of interest rate and foreign currency
exchange rate fluctuations against bonds and borrowings for the purpose of
stabilizing the Company's income.
(4) Risk of transactions
The Company considers that there is no significant credit risk arising from
default by counter-parties, as they are major financial institutions in the
international financial market.
(5) Risk management
Derivative transactions for fluctuations in interest rate and exchange rate of
bonds and borrowings the Company enters into are approved by the board of
directors and executed and controlled under administration of finance department
of the Company. The conditions and results of transactions are reported timely
to the board of directors by the finance department.
2. Fair Value of Financial Derivatives
Contract amount, quotation and gain or loss on evaluation
(1) Currency
Data for all derivative transactions related to foreign currency are not
required to be disclosed as hedge accounting is applied.
(2) Interest
Data for all derivative transactions related to interests are not required to be
disclosed as hedge accounting is applied.
Current Consolidated Fiscal Year (from April 1, 2009 to March 31, 2010)
1. Derivative transactions for which hedging activities accounting is applied
(1) Currency
(millions of yen)
+-------------+-------------+----------+----------+----------+----------+
| Method | Type of | Target |Contract |Contract | Market |
| |transaction | | amount | amount | value |
| | | | |over one | |
| | | | | year | |
+-------------+-------------+----------+----------+----------+----------+
| Specific | Currency | | | | |
| allocation | swap | | | | |
| method for | transaction | | | | |
| | receiving | Bonds | 52,462 | 52,462 | Note |
| forward | in USD | payable | | | |
| exchange | | | | | |
| contract | | | | | |
| etc. and | | | | | |
| exceptional | | | | | |
| accrual | | | | | |
| method | | | | | |
| for | | | | | |
| interest | | | | | |
| rate | | | | | |
| swap | | | | | |
| transaction | | | | | |
+-------------+-------------+----------+----------+----------+----------+
| Total | | 52,462 | 52,462 | - |
+-------------+-------------+----------+----------+----------+----------+
Note: Transaction, to which specific allocation method is applied, such as
forward exchange contract etc. is included in bonds hedged by it for accounting
purpose. Therefore, the fair value is included in such bonds and is disclosed as
a part of it.
(2) Interest
(millions of yen)
+-------------+-------------+------------+----------+----------+----------+
| Method | Type of | Target |Contract |Contract | Market |
| |transaction | | amount | amount | value |
| | | | |over one | |
| | | | | year | |
+-------------+-------------+------------+----------+----------+----------+
| Exceptional | Interest | Long-term | | | |
| accrual | rate |borrowings | 5,000 | - | Note |
| method for | swap | | | | |
| interest | transaction | | | | |
| rate swap | floating | | | | |
| transaction | receiving, | | | | |
| | fixed | | | | |
| | payment | | | | |
+-------------+-------------+------------+----------+----------+----------+
| Total | | 5,000 | | - |
| | | | - | |
+-------------+-------------+------------+----------+----------+----------+
Note : The exceptional accrual method is used for interest-rate swaps. In
accounting, therefore, interest-rate swaps are integrated with long-term
borrowings as hedged items and included in the market value of the long-term
borrowings.
Footnotes to Retirement Plan and Retirement Benefits
+------------------------------------------+------------------------------------------+
| Previous Consolidated Fiscal Year | Current Consolidated Fiscal Year |
| (from April 1, 2008 to March 31, | (from April 1, 2009 to March |
| 2009) | 31,2010) |
+------------------------------------------+------------------------------------------+
| 1. Outline of retirement benefits | 1. Outline of retirement benefits |
| plans | plans |
+------------------------------------------+------------------------------------------+
| Employees with more than two | The same as the previous fiscal |
| years of service for the Company | year. |
| are generally entitled to | |
| lump-sum retirement benefits | |
| determined by reference to their | |
| current rate of pay, length of | |
| service and conditions under | |
| which the termination occur. In | |
| order to provide for such | |
| retirement benefits to employees, | |
| the Company has a funded | |
| non-contributory pension plan | |
| which covers a portion of the | |
| retirement benefits payable to | |
| the retiring employees. The | |
| benefits which are not covered by | |
| the funded pension plan are paid | |
| by the Company, having recognized | |
| accrued costs for such a | |
| liability as an allowance for | |
| retirement benefits. | |
+------------------------------------------+------------------------------------------+
| 2. Retirement benefits | 2. Retirement benefits |
| liabilities as of March 31, 2009 | liabilities as of March 31, 2010 |
+------------------------------------------+------------------------------------------+
| | |
| (millions | (millions |
| of yen) | of yen) |
| (1) Retirement benefits -5,788 | (1) Retirement benefits -5,868 |
| liabilities | liabilities |
| (2) Plan assets 1,969 | (2) Plan assets 2,103 |
| (3) Unfunded retirement -3,818 | (3) Unfunded retirement -3,766 |
| benefits liabilities | benefits liabilities |
| (1)+(2) | (1)+(2) |
| (4) Transition obligations - | (4) Transition obligations - |
| from change in accounting | from change in accounting |
| standard | standard |
| (5) Unrecognized actuarial 208 | (5) Unrecognized actuarial -115 |
| losses | losses |
| (6) Unrecognized liability - | (6) Unrecognized liability - |
| during past employment | during past employment |
| (decrease from | (decrease from |
| liabilities) | liabilities) |
| (7) Net retirement benefits -3,610 | (7) Net retirement benefits -3,881 |
| liabilities on the | liabilities on the |
| consolidated balance | consolidated balance |
| sheets (3)+(4)+(5)+(6) | sheets (3)+(4)+(5)+(6) |
| (8) Prepaid pension expenses - | (8) Prepaid pension expenses - |
| (9) Allowance for retirement -3,610 | (9) Allowance for retirement -3,881 |
| benefits (7)+(8) | benefits (7)+(8) |
| | |
+------------------------------------------+------------------------------------------+
| 3. Retirement benefits expenses | 3. Retirement benefits expenses |
| from April 1, 2008 | from April 1, 2009 |
| to March 31, 2009 | to March 31, 2010 |
+------------------------------------------+------------------------------------------+
| | |
| (millions | (millions |
| of yen) | of yen) |
| (1) Retirement benefits 510 | (1) Retirement benefits 496 |
| payable during the | payable during the |
| employment | employment |
| (2) Interest Expenses 83 | (2) Interest Expenses 87 |
| (3) Expected return on plan -28 | (3) Expected return on plan -27 |
| assets | assets |
| (4) Net amortization of 190 | (4) Net amortization of 208 |
| actuarial gains (losses) | actuarial gains (losses) |
| (5) Retirement benefits 755 | (5) Retirement benefits 765 |
| expenses (1)+(2)+(3)+(4) | expenses (1)+(2)+(3)+(4) |
| | |
+------------------------------------------+------------------------------------------+
| 4. Assumptions used in | 4. Assumptions used in |
| calculation of retirement | calculation of retirement |
| benefits liabilities | benefits liabilities |
+------------------------------------------+------------------------------------------+
| | |
| (1) Attribution method of projected | (1) Attribution method of projected |
| retirement benefits | retirement benefits |
| liabilities; The straight-line | liabilities; The straight-line |
| method | method |
| (2) Discount rate; 1.50% | (2) Discount rate; 1.50% |
| (3) Expected rate of 1.35% | (3) Expected rate of 1.35% |
| return on plan | return on plan |
| assets; | assets; |
| (4) Years of amortizing actuarial | (4) Years of amortizing actuarial |
| gains or losses; | gains or losses; |
| Expensed fully in the immediate | Expensed fully in the immediate |
| succeeding year. | succeeding year. |
| | |
+------------------------------------------+------------------------------------------+
Footnotes to Stock Options
Previous Consolidated Fiscal Year (from April 1, 2008 to March 31, 2009)
1. Amount and account of stock options expensed in the current fiscal year
+-------------------------+-----------+
| Other of other | 101 |
| operating expenses | million |
| | yen |
+-------------------------+-----------+
2. Summary and changes of stock options
(1) Outline of stock options
+-----------------+-------------------------+-------------------------+
| | Stock options granted | Stock options granted |
| | in fiscal year ended | in fiscal year ended |
| | March 31, 2008 | March 31, 2009 |
+-----------------+-------------------------+-------------------------+
| Title and | Employees of the | Directors of the |
| number of | Company 2,507 | Company 12 |
| grantees | | |
+-----------------+-------------------------+-------------------------+
| Type and number | Common stocks | Common stocks |
| of stock | 536,750 shares | 27,400 shares |
| options (Note) | | |
+-----------------+-------------------------+-------------------------+
| Grant date | November 29, 2007 | August 12, 2008 |
+-----------------+-------------------------+-------------------------+
| Conditions for | Grantees are required | Grantees are required |
| vesting | to remain directors, | to remain directors of |
| | corporate auditors or | the Company, or in |
| | employees of the | other similar positions |
| | Company, or in other | until stock options are |
| | similar positions until | exercised. |
| | stock options are | |
| | exercised. | |
+-----------------+-------------------------+-------------------------+
| Requisite | No requisite service | No requisite service |
| service period | periods have been | periods have been |
| | specified. | specified. |
+-----------------+-------------------------+-------------------------+
| Exercise period | From November 9, 2009 | From August 13, 2010 to |
| | to November 8, 2011 | August 12, 2012 |
+-----------------+-------------------------+-------------------------+
Note: The number of stock options is presented as the number equivalent to
common stocks.
(2) Stock options granted and changes
The details of stock options existed in the fiscal year ended March 31, 2009 are
given below. The number of stock options is presented as the number equivalent
to common stocks.
A Number of stock options
+-----------------+-------------------------+-------------------------+
| | Stock options granted | Stock options granted |
| | in fiscal year ended | in fiscal year ended |
| | March 31, 2008 | March 31, 2009 |
+-----------------+-------------------------+-------------------------+
| Before vested | | |
| (Shares) | | |
+-----------------+-------------------------+-------------------------+
| Previous fiscal | 521,100 | - |
| year end | | |
+-----------------+-------------------------+-------------------------+
| Granted | - | 27,400 |
+-----------------+-------------------------+-------------------------+
| Forfeited | 50,800 | 2,500 |
+-----------------+-------------------------+-------------------------+
| Vested | - | - |
+-----------------+-------------------------+-------------------------+
| Outstanding | 470,300 | 24,900 |
+-----------------+-------------------------+-------------------------+
| After vested | | |
| (Shares) | | |
+-----------------+-------------------------+-------------------------+
| Previous fiscal | - | - |
| year end | | |
+-----------------+-------------------------+-------------------------+
| Vested | - | - |
+-----------------+-------------------------+-------------------------+
| Exercised | - | - |
+-----------------+-------------------------+-------------------------+
| Forfeited | - | - |
+-----------------+-------------------------+-------------------------+
| Exercisable | - | - |
+-----------------+-------------------------+-------------------------+
B Price information
+-----------------+-------------------------+-------------------------+
| | Stock options granted | Stock options granted |
| | in fiscal year ended | in fiscal year ended |
| | March 31, 2008 | March 31, 2009 |
+-----------------+-------------------------+-------------------------+
| Exercise price | 2,825 | 1,507 |
| (yen) | | |
+-----------------+-------------------------+-------------------------+
| Average | - | - |
| exercise | | |
| Price(yen) | | |
+-----------------+-------------------------+-------------------------+
| Fair assessed | 517 | 339 |
| value | | |
| at the grant | | |
| date (yen) | | |
+-----------------+-------------------------+-------------------------+
3. Valuation technique used for Method of estimating the fair assessed value of
the stock options
Valuation technique used for Method of estimating the fair assessed value of the
stock options is as follows.
(1) Valuation technique: Black-Scholes option-pricing model
(2) Principle parameters used in the option-pricing model were as follows
+-----------------+-------------------------+-------------------------+
| | Stock options granted | Stock options granted |
| | in fiscal year ended | in fiscal year ended |
| | March 31, 2008 | March 31, 2009 |
+-----------------+-------------------------+-------------------------+
| Share price | 39.42% | 41.67% |
| volatility | | |
| (Note:1) | | |
+-----------------+-------------------------+-------------------------+
| Estimated | 3 years | 3 years |
| remaining | | |
| period until | | |
| maturity | | |
| (Note:2) | | |
+-----------------+-------------------------+-------------------------+
| Expected | 180 yen per share | 60 yen per share |
| dividends | | |
| (Note:3) | | |
+-----------------+-------------------------+-------------------------+
| Risk-free | 0.84% | 0.84% |
| interest rate | | |
| (Note:4) | | |
+-----------------+-------------------------+-------------------------+
Notes: 1. The expected volatility was calculated based on the actual stock
prices for three years from December 2004 to November 2007 for stock option in
2007, from September 2005 to August 2008 for stock option in 2008.
2. The average expected life could not be estimated rationally because of
insufficient data. As a result, it was estimated assuming that the options would
be exercised at the mid point of the exercise period.
3. As for stock option in 2007, the figure is based on dividends forecast for
the fiscal year ended March 31, 2008.As for stock option in 2008, the figure is
based on dividends forecast for the fiscal year ended March 31,2009.
4. The risk-free interest rate used is the rate of Japanese government bond
yield corresponding to the average expected life.
4. Method of estimating the number of stock options vested
A method that reflects the average employee turnover rate over the past three
years has been adopted to rationally estimate the number of stock options that
will be forfeited in the future.
Current Consolidated Fiscal Year (from April 1, 2009 to March 31, 2010)
1. Amount and account of stock options expensed in the current fiscal year
+-------------------------+-----------+
| Other of other | 61 |
| operating expenses | million |
| | yen |
+-------------------------+-----------+
2. Summary and changes of stock options
(1) Outline of stock options
+-----------------+-------------------------+-------------------------+
| | Stock options granted | Stock options granted |
| | in fiscal year ended | in fiscal year ended |
| | March 31, 2008 | March 31, 2009 |
+-----------------+-------------------------+-------------------------+
| Title and | Employees of the | Directors of the |
| number of | Company 2,507 | Company 12 |
| grantees | | |
+-----------------+-------------------------+-------------------------+
| Type and number | Common stocks | Common stocks |
| of stock | 536,750 shares | 27,400 shares |
| options (Note) | | |
+-----------------+-------------------------+-------------------------+
| Grant date | November 29, 2007 | August 12, 2008 |
+-----------------+-------------------------+-------------------------+
| Conditions for | Grantees are required | Grantees are required |
| vesting | to remain directors, | to remain directors of |
| | corporate auditors or | the Company, or in |
| | employees of the | other similar positions |
| | Company, or in other | until stock options are |
| | similar positions until | exercised. |
| | stock options are | |
| | exercised. | |
+-----------------+-------------------------+-------------------------+
| Requisite | No requisite service | No requisite service |
| service period | periods have been | periods have been |
| | specified. | specified. |
+-----------------+-------------------------+-------------------------+
| Exercise period | From November 9, 2009 | From August 13, 2010 to |
| | to November 8, 2011 | August 12, 2012 |
+-----------------+-------------------------+-------------------------+
Note: The number of stock options is presented as the number equivalent to
common stocks.
(2) Stock options granted and changes
The details of stock options existed in the fiscal year ended March 31, 2010 are
given below. The number of stock options is presented as the number equivalent
to common stocks.
A Number of stock options
+-----------------+-------------------------+-------------------------+
| | Stock options granted | Stock options granted |
| | in fiscal year ended | in fiscal year ended |
| | March 31, 2008 | March 31, 2009 |
+-----------------+-------------------------+-------------------------+
| Before vested | | |
| (Shares) | | |
+-----------------+-------------------------+-------------------------+
| Previous fiscal | 470,300 | 24,900 |
| year end | | |
+-----------------+-------------------------+-------------------------+
| Granted | - | - |
+-----------------+-------------------------+-------------------------+
| Forfeited | 34,300 | - |
+-----------------+-------------------------+-------------------------+
| Vested | 436,000 | - |
+-----------------+-------------------------+-------------------------+
| Outstanding | - | 24,900 |
+-----------------+-------------------------+-------------------------+
| After vested | | |
| (Shares) | | |
+-----------------+-------------------------+-------------------------+
| Previous fiscal | - | - |
| year end | | |
+-----------------+-------------------------+-------------------------+
| Vested | 436,000 | - |
+-----------------+-------------------------+-------------------------+
| Exercised | - | - |
+-----------------+-------------------------+-------------------------+
| Forfeited | 27,100 | - |
+-----------------+-------------------------+-------------------------+
| Exercisable | 408,900 | - |
+-----------------+-------------------------+-------------------------+
B Price information
+-----------------+-------------------------+-------------------------+
| | Stock options granted | Stock options granted |
| | in fiscal year ended | in fiscal year ended |
| | March 31, 2008 | March 31, 2009 |
+-----------------+-------------------------+-------------------------+
| Exercise price | 2,825 | 1,507 |
| (yen) | | |
+-----------------+-------------------------+-------------------------+
| Average | - | - |
| exercise | | |
| Price(yen) | | |
+-----------------+-------------------------+-------------------------+
| Fair assessed | 517 | 339 |
| value | | |
| at the grant | | |
| date (yen) | | |
+-----------------+-------------------------+-------------------------+
3. Valuation technique used for Method of estimating the fair assessed value of
the stock options
Valuation technique used for Method of estimating the fair assessed value of the
stock options is as follows.
(1) Valuation technique: Black-Scholes option-pricing model
(2) Principle parameters used in the option-pricing model were as follows
+-----------------+-------------------------+-------------------------+
| | Stock options granted | Stock options granted |
| | in fiscal year ended | in fiscal year ended |
| | March 31, 2008 | March 31, 2009 |
+-----------------+-------------------------+-------------------------+
| Share price | 39.42% | 41.67% |
| volatility | | |
| (Note:1) | | |
+-----------------+-------------------------+-------------------------+
| Estimated | 3 years | 3 years |
| remaining | | |
| period until | | |
| maturity | | |
| (Note:2) | | |
+-----------------+-------------------------+-------------------------+
| Expected | 180 yen per share | 60 yen per share |
| dividends | | |
| (Note:3) | | |
+-----------------+-------------------------+-------------------------+
| Risk-free | 0.84% | 0.84% |
| interest rate | | |
| (Note:4) | | |
+-----------------+-------------------------+-------------------------+
Notes: 1. The expected volatility was calculated based on the actual stock
prices for three years from December 2004 to November 2007 for stock option in
2007, from September 2005 to August 2008 for stock option in 2008.
2. The average expected life could not be estimated rationally because of
insufficient data. As a result, it was estimated assuming that the options would
be exercised at the mid point of the exercise period.
3. As for stock option in 2007, the figure is based on dividends forecast for
the fiscal year ended March 31, 2008.As for stock option in 2008, the figure is
based on dividends forecast for the fiscal year ended March 31,2009.
4. The risk-free interest rate used is the rate of Japanese government bond
yield corresponding to the average expected life.
4. Method of estimating the number of stock options vested
A method that reflects the average employee turnover rate over the past three
years has been adopted to rationally estimate the number of stock options that
will be forfeited in the future.
Footnotes to the Deferred Tax Accounting
+-----------------------------------+---------------------------------------------------------------------------------------------+
|Previous Consolidated Fiscal Year | Current Consolidated Fiscal Year |
| (as of March 31, 2009) | (as of March 31, 2010) |
+-----------------------------------+---------------------------------------------------------------------------------------------+
| 1. The tax effects of temporary | 1. The tax effects of temporary |
| differences which give rise to | differences which give rise to |
| significant portions of the | significant portions of the |
| deferred income tax assets and | deferred income tax assets and |
| liabilities are as follows: | liabilities are as follows: |
+-----------------------------------+---------------------------------------------------------------------------------------------+
| | |
| (millions | (millions |
| of yen) | of yen) |
| Current deferred | Current deferred |
| income tax assets; | income tax assets; |
| Direct cash loans to 7,467 | Direct cash loans to 9,493 |
| customers | customers |
| Accrued interest 1,996 | Accrued interest 1,312 |
| income on direct cash | income on direct cash |
| loans to customers | loans to customers |
| Allowance for credit 12,966 | Allowance for credit 654 |
| losses | losses |
| Allowance for bonuses 259 | Allowance for bonuses 152 |
| Other 504 | Allowance for loss on 4,567 |
| Subtotal 23,191 | transfer of |
| Valuation allowance -23,178 | receivables |
| Total 13 | Other 746 |
| | Subtotal 16,924 |
| | Valuation allowance -16,924 |
| | Total - |
| | |
| (millions | (millions |
| of yen) | of yen) |
| Fixed deferred income | Fixed deferred income |
| tax assets; | tax assets; |
| Tangible fixed assets 16,591 | Tangible fixed assets 17,216 |
| Investment securities 632 | Investment securities 535 |
| Valuation difference 793 | Valuation difference 389 |
| on available-for-sale | on available-for-sale |
| securities | securities |
| Allowance for losses | Allowance for losses |
| for refund of 163,360 | for refund of 110,546 |
| interest received | interest received |
| from customers | from customers |
| Allowance for | Allowance for |
| retirement benefits 1,462 | retirement benefits 1,572 |
| of employees | of employees |
| Accumulated deficit 109,897 | Accumulated deficit 166,214 |
| Other 12,579 | Other 12,918 |
| Subtotal 305,313 | Subtotal 309,390 |
| Valuation allowance -305,313 | Valuation allowance -309,390 |
| Total - | Total - |
| Fixed deferred income | Fixed deferred income |
| tax liabilities; | tax liabilities; |
| Valuation difference | Valuation difference |
| on available-for-sale -8 | on available-for-sale -7 |
| securities | securities |
| Total -8 | Total -7 |
| Net deferred income -8 | Net deferred income -7 |
| tax liabilities | tax liabilities |
| | |
| | |
+-----------------------------------+---------------------------------------------------------------------------------------------+
| 2. A reconciliation between the | 2. A reconciliation between the statutory tax rate and the effective tax rate is as follow; |
| statutory tax rate and the | |
| effective tax rate is as follow; | Statutory tax rate 40.5% |
| Items have been omitted as they | (Reconciling items) |
| are not required for companies | Changes in valuation allowance -39.7 |
| resulting in a loss before income | Per capita inhabitants taxes 2.8 |
| taxes. | Other 4.1 |
| | Effective tax rate |
| | 7.7 |
| | |
+-----------------------------------+---------------------------------------------------------------------------------------------+
Footnotes to business combinations, etc
None
Footnotes to real estate properties for rent etc
Notes have been omitted because total amount of real estate properties for rent
etc. has does not have a significant impact.
Segment Information
Previous Consolidated Fiscal Year (from April 1, 2008 to March 31, 2009) and
Current Consolidated Fiscal Year (from April 1, 2009 to March 31, 2010)
The Takefuji Corporation Group's principal business is providing consumer
finance. As consumer finance business represents more than 90% of the Group's
combined operating revenues, operating income and assets, the disclosure of
industry segment information is excluded.
Segment by geographic areas
Previous Consolidated Fiscal Year (from April 1, 2008 to March 31, 2009) and
Current Consolidated Fiscal Year (from April 1, 2009 to March 31, 2010)
As domestic operating revenues and assets represent more than 90% of the Group's
combined operating revenues and assets, the disclosure of geographical segment
information is excluded.
Overseas operating revenues
Previous Consolidated Fiscal Year (from April 1, 2008 to March 31, 2009) and
Current Consolidated Fiscal Year (from April 1, 2009 to March 31, 2010)
As overseas operating revenues are less than 10% of consolidated operating
revenues, the disclosure of overseas operation revenues is excluded.
Related Party Transactions
Previous Consolidated Fiscal Year ( from April 1, 2008 to March 31, 2009 )
(Additional Information)
From the current consolidated fiscal year, we adopted the Accounting Standard
for Related Party Disclosures (ASBJ Statement No.11 October 17, 2006) and the
Guidance on Accounting Standard for Related Party Disclosures (ASBJ Guidance
No.13 October 17, 2006).
There is no change in the scope of disclosure due to this.
1. Related Party Transactions
Transactions between the Company and Related Party
Directors and primary individual shareholders etc. of the Company
+-------+-------------+-----------+----------+----------+--------------+--------------+------------+---------+-------------+
| Attribution: Companies of which directors and their relatives have the majority |
| of the voting rights, including their subsidiaries |
+--------------------------------------------------------------------------------------------------------------------------+
| Name | Address | Capital |Business | Ratio |Relationship |Transactions | Amount |Account |Outstanding |
| | |(millions | or post | of |with related | |transacted | | balance at |
| | | | | voting | parties | | (millions | | the end of |
| | | of yen) | | rights | | | of yen) | | the fiscal |
| | | | | held | | | | | year |
| | | | | | | | | | (millions |
| | | | | | | | | | of yen) |
+-------+-------------+-----------+----------+----------+--------------+--------------+------------+---------+-------------+
|Daio | Tokyo | 10 | Real | Direct | Additional | Payment | 53 |Prepaid | 4 |
| Co., |Suginami-ku | | estate | 5.7% | post | for use | |expense | |
| Ltd. | | | rent |Indirect | 1 | of | | | |
| | | | | 0.1% | | facility | | | |
| | | | | | | etc | | | |
+ + + + + + + + +---------+-------------+
| | | | | | | | |Account | 1 |
| | | | | | | | |payable | |
+-------+-------------+-----------+----------+----------+--------------+--------------+------------+---------+-------------+
Notes: 1. Consumption taxes are included in the transactions.
2. All conditions and methods of the transactions mentioned above are determined
by the same way as general transactions in consideration of market supply and
demand as well as the trend of market prices and others.
3. Taketeru Takei, a director of the Company, and his relatives have 100% of
voting rights of Daio Co., Ltd. directly or indirectly.
2. Information of Parent Company and Significant Affiliate Companies
None
Current Consolidated Fiscal Year ( from April 1, 2009 to March 31, 2010 )
1. Related Party Transactions
Transactions between the Company and Related Party
Directors and primary individual shareholders etc. of the Company
+-------+-------------+-----------+----------+----------+--------------+--------------+------------+---------+-------------+
| Attribution: Companies of which directors and their relatives have the majority |
| of the voting rights, including their subsidiaries |
+--------------------------------------------------------------------------------------------------------------------------+
| Name | Address | Capital |Business | Ratio |Relationship |Transactions | Amount |Account |Outstanding |
| | |(millions | or post | of |with related | |transacted | | balance at |
| | | | | voting | parties | | (millions | | the end of |
| | | of yen) | | rights | | | of yen) | | the fiscal |
| | | | | held | | | | | year |
| | | | | | | | | | (millions |
| | | | | | | | | | of yen) |
+-------+-------------+-----------+----------+----------+--------------+--------------+------------+---------+-------------+
|Daio | Tokyo | 10 | Real | Direct | Additional | Payment | 53 |Prepaid | 4 |
| Co., |Suginami-ku | | estate | 5.7% | post | for use | |expense | |
| Ltd. | | | rent |Indirect | 1 | of | | | |
| | | | | 0.1% | | facility | | | |
| | | | | | | etc | | | |
+ + + + + + + + +---------+-------------+
| | | | | | | | |Account | 1 |
| | | | | | | | |payable | |
+-------+-------------+-----------+----------+----------+--------------+--------------+------------+---------+-------------+
Notes: 1. Consumption taxes are included in the transactions.
2. All conditions and methods of the transactions mentioned above are determined
by the same way as general transactions in consideration of market supply and
demand as well as the trend of market prices and others.
3. Taketeru Takei, a director of the Company, and his relatives have 100% of
voting rights of Daio Co., Ltd. directly or indirectly.
2. Information of Parent Company and Significant Affiliate Companies
None
Footnotes to the special purpose entities with disclosure requirements
Previous Consolidated Fiscal Year ( from April 1, 2008 to March 31, 2009 )
1. Outlines of the special purpose entity with disclosure requirements along
with outlines of transactions with this special purpose entity
The Company is funding by utilizing trust beneficiary backed by the direct cash
loans to customers originated by the company, aiming to secure access to stable
funding. Regarding this securitized funding activity, the Company uses a special
purpose entity in the form of a limited company. Firstly the Company transfers
the preferred portion of the trust beneficiary to the special purpose entity and
then receives the fund from the special purpose entity which raises their funds
by the issuance of the corporate bond, backed by the said transferred preferred
assets as proceeds of the sale of the assets.
The Company conducts the loan collection service and retains the subordinated
portion of the trust beneficiary.
As a result of the funding, as of March 31, 2009, there is a special purpose
entity with which the Company has transactions and the total assets and
liabilities owned by this special purpose entity as of the most recent closing
date is 114,554 million yen and 114,544 million yen. The Company retains no
stocks with shareholder voting rights of the special purpose entity nor
dispatches directors or employees.
2. Amount of transaction with the special purpose entities in the current
consolidated fiscal year
Outline of transaction with the special purpose entities have been omitted as
the transfer of these assets to the special purpose entity is treated as
financial transactions.
Current Consolidated Fiscal Year ( from April 1, 2009 to March 31, 2010 )
1. Outlines of the special purpose entity with disclosure requirements along
with outlines of transactions with this special purpose entity
The Company is funding by utilizing trust beneficiary backed by the direct cash
loans to customers originated by the company, aiming to secure access to stable
funding. Regarding this securitized funding activity, the Company uses a special
purpose entity in the form of a limited company. Firstly the Company transfers
the preferred portion of the trust beneficiary to the special purpose entity and
then receives the fund from the special purpose entity which raises their funds
by the issuance of the corporate bond, backed by the said transferred preferred
assets as proceeds of the sale of the assets.
The Company conducts the loan collection service and retains the subordinated
portion of the trust beneficiary.
As a result of the funding, as of March 31, 2010, there is a special purpose
entity with which the Company has transactions and the total assets and
liabilities owned by this special purpose entity as of the most recent closing
date is 71,917 million yen and 71,907 million yen. The Company retains no stocks
with shareholder voting rights of the special purpose entity nor dispatches
directors or employees.
2. Amount of transaction with the special purpose entity in the current
consolidated fiscal year
Outline of transaction with the special purpose entity has been omitted as the
transfer of these assets to the special purpose entity is treated as financial
transactions.
Footnotes to Statistics per Share
+-----------------------------------+--------------------------------------+
|Previous Consolidated Fiscal Year | Current Consolidated Fiscal Year |
| (from April 1, 2008 to March 31, | (from April 1, 2009 to March 31, |
| 2009) | 2010) |
+-----------------------------------+--------------------------------------+
| | |
| Net assets per share; 1,108.12 | Net assets per share; 1,114.87yen |
| yen | Net income per share; 33.93yen |
| Net loss per share; 1,880.05 | Net income per 31.79yen |
| yen | share-diluted; |
| | |
+-----------------------------------+--------------------------------------+
| Net income per share-diluted is | |
| not presented since net loss is | |
| recorded and there are no | |
| potential dilutive stocks. | |
+-----------------------------------+--------------------------------------+
Note: Bases for calculating net income or net loss per share and net income per
share-diluted are as follows:
(millions of yen)
+---------------------------+----------------------+----------------------+
| | Previous |Current Consolidated |
| | Consolidated Fiscal | Fiscal Year |
| | Year | (from April 1, 2009 |
| | (from April 1, 2008 | to March 31, 2010) |
| | to March 31, 2009) | |
+---------------------------+----------------------+----------------------+
| Net income or net loss | | |
| per share | | |
+---------------------------+----------------------+----------------------+
| Net income for the fiscal | -256,137 | 4,577 |
| year | | |
+---------------------------+----------------------+----------------------+
| Net income not available | - | - |
| to common shareholders | | |
+---------------------------+----------------------+----------------------+
| Net income for common | -256,137 | 4,577 |
| stock | | |
+---------------------------+----------------------+----------------------+
| Average number of shares | 136,239 | 134,920 |
| outstanding during the | | |
| current fiscal year | | |
| (thousand shares) | | |
+---------------------------+----------------------+----------------------+
| | | |
+---------------------------+----------------------+----------------------+
| Net income per | | |
| share-diluted | | |
+---------------------------+----------------------+----------------------+
| Net income adjustments | - | 557 |
+---------------------------+----------------------+----------------------+
| (Borrowing interest | (-) | (557) |
| expenses included in the | | |
| above (after deduction of | | |
| tax)) | | |
+---------------------------+----------------------+----------------------+
| Increase of common stocks | - | 26,599 |
| (thousand shares) | | |
+---------------------------+----------------------+----------------------+
| Outline of potential | Subscription rights | Subscription rights |
| stocks, which are not | to shares as stock | to shares as stock |
| dilutive and therefore | options resolved by | options resolved by |
| were excluded from the | the board of | the board of |
| calculation of net income | directors meeting | directors meeting |
| per share-diluted | held on November 8, | held on November 8, |
| | 2007 | 2007 |
| | 470,300 shares | 408,900 shares |
+---------------------------+----------------------+----------------------+
| | JPY 70 billion | Share subscription |
| | Euro-yen convertible | rights as stock |
| | bond-type bonds with | options based on the |
| | subscription rights | resolution of the |
| | to shares due 2018 | board of directors' |
| | 29,761,904 shares | meeting held on July |
| | Share subscription | 18, 2008. |
| | rights as stock | 24,900 shares |
| | options based on the | |
| | resolution of the | |
| | board of directors' | |
| | meeting held on July | |
| | 18, 2008. | |
| | 24,900 shares | |
+---------------------------+----------------------+----------------------+
Subsequent Events
None
5. Actual Operating Results
(1) Break-down of Operating Revenues
+--------------+--------------+--------------+--------------+-----------+-------------+-----------+---------+---------+
| Source of revenues | Previous | Current | Change | |
| | Consolidated | Consolidated | | |
| | Fiscal Year | Fiscal Year | | |
| | (from April 1, | (from April 1, | | |
| | 2008 to March 31, | 2009 to March 31, | | |
| | 2009) | 2010) | | |
+ +-----------------------------+-------------------------+---------------------+---------+
| | Amount | Composition | Amount |Composition | Amount | Change | |
| |(millions of | Ratio (%) |(millions | Ratio (%) |(millions | Ratio | |
| | yen) | | of yen) | | of yen) | (%) | |
+-----------------------------+--------------+--------------+-----------+-------------+-----------+---------+---------+
| Interest | Unsecured | 178,337 | 95.7 | 113,581 | 94.4 | -64,756 | -36.3 | |
| income on | loans | | | | | | | |
| direct cash | | | | | | | | |
| loans | | | | | | | | |
+--------------+--------------+--------------+--------------+-----------+-------------+-----------+---------+---------+
| Credit card | Credit card | 69 | 0.0 | 57 | 0.1 | -12 | -17.0 | |
| revenues | | | | | | | | |
+--------------+--------------+--------------+--------------+-----------+-------------+-----------+---------+---------+
| Other | Interest on | 461 | 0.2 | 55 | 0.1 | -405 | -88.0 | |
| financial | bank | | | | | | | |
| revenues | deposits | | | | | | | |
+ +--------------+--------------+--------------+-----------+-------------+-----------+---------+---------+
| | Interest on | 329 | 0.2 | 30 | 0.0 | -298 | -90.8 | |
| | loans other | | | | | | | |
| | than direct | | | | | | | |
| | cash loans | | | | | | | |
+ +--------------+--------------+--------------+-----------+-------------+-----------+---------+---------+
| | Other (Note | 1,822 | 1.0 | 697 | 0.6 | -1,125 | -61.7 | |
| | 1) | | | | | | | |
+ +--------------+--------------+--------------+-----------+-------------+-----------+---------+---------+
| | Subtotal | 2,611 | 1.4 | 783 | 0.7 | -1,828 | -70.0 | |
+--------------+--------------+--------------+--------------+-----------+-------------+-----------+---------+---------+
| Other | Collection | 3,235 | 1.8 | 3,750 | 3.1 | 515 | 15.9 | |
| operating | from bad | | | | | | | |
| revenues | debts | | | | | | | |
| | previously | | | | | | | |
| | written-off | | | | | | | |
+ +--------------+--------------+--------------+-----------+-------------+-----------+---------+---------+
| | Real estate | 993 | 0.5 | 893 | 0.7 | -100 | -10.0 | |
| | rent income | | | | | | | |
+ +--------------+--------------+--------------+-----------+-------------+-----------+---------+---------+
| | Other (Note | 1,104 | 0.6 | 1,202 | 1.0 | 98 | 8.9 | |
| | 2) | | | | | | | |
+ +--------------+--------------+--------------+-----------+-------------+-----------+---------+---------+
| | Subtotal | 5,331 | 2.9 | 5,845 | 4.8 | 514 | 9.6 | |
+--------------+--------------+--------------+--------------+-----------+-------------+-----------+---------+---------+
| Total | 186,349 | 100.0 | 120,266 | 100.0 | -66,082 | -35.5 | |
+--------------+--------------+--------------+--------------+-----------+-------------+-----------+---------+---------+
Notes: 1. "Other" in other financial revenues mainly consist of interest
received from interest swap transaction.
2. "Other" in other operating revenues mainly consists of parking lots fees and
golf course play fees.
(2) Other Highlights Data
+--------+----------------------+---------------+---------------+----------+--------+
| Items | Previous | Current | Change | |
| | Consolidated | Consolidated | | |
| | Fiscal Year | Fiscal Year | | |
| | (as of March | (as of March | | |
| | 31, 2009) | 31, 2010) | | |
+ + + + +--------+
| | | | |Change |
| | | | | Ratio |
| | | | | (%) |
+-------------------------------+---------------+---------------+----------+--------+
| Direct cash loans to | 861,517 | 589,477 | -272,040 | -31.6 |
| customers | | | | |
| (millions of yen) | | | | |
+-------------------------------+---------------+---------------+----------+--------+
| | Unsecured loans | 861,517 | 589,447 | -272,040 | -31.6 |
+--------+----------------------+---------------+---------------+----------+--------+
| | Secured loans | - | - | - | - |
+--------+----------------------+---------------+---------------+----------+--------+
| Installment receivables | 465 | 312 | -153 | -33.0 |
| (millions of yen) | | | | |
+-------------------------------+---------------+---------------+----------+--------+
| Number of loan customer | 1,480,683 | 1,078,517 | -402,166 | -27.2 |
| accounts | | | | |
+-------------------------------+---------------+---------------+----------+--------+
| | Unsecured loans | 1,480,683 | 1,078,517 | -402,166 | -27.2 |
+--------+----------------------+---------------+---------------+----------+--------+
| | Secured loans | - | - | - | - |
+--------+----------------------+---------------+---------------+----------+--------+
| Number of credit card | 275,684 | 251,436 | -24,248 | -8.8 |
| membership | | | | |
+-------------------------------+---------------+---------------+----------+--------+
| Number of branch offices | 1,051 | 786 | -265 | -25.2 |
+-------------------------------+---------------+---------------+----------+--------+
| | Manned | 210 | 140 | -70 | -33.3 |
+--------+----------------------+---------------+---------------+----------+--------+
| | Unmanned | 840 | 645 | -195 | -23.2 |
+--------+----------------------+---------------+---------------+----------+--------+
| | Internet branch | 1 | 1 | - | - |
| | office | | | | |
+--------+----------------------+---------------+---------------+----------+--------+
| Number of unmanned loan | 1,051 | 786 | -265 | -25.2 |
| contract machines | | | | |
+-------------------------------+---------------+---------------+----------+--------+
| Number of cash dispensers and | 54,904 | 57,940 | 3,036 | 5.5 |
| ATMs | | | | |
+-------------------------------+---------------+---------------+----------+--------+
| | Owned | 1,161 | 873 | -288 | -24.8 |
+--------+----------------------+---------------+---------------+----------+--------+
| | Tie-up | 53,743 | 57,067 | 3,324 | 6.2 |
+--------+----------------------+---------------+---------------+----------+--------+
| Number of employees | 2,434 | 2,124 | -310 | -12.7 |
+-------------------------------+---------------+---------------+----------+--------+
| Write-offs | 144,404 | 57,186 | -87,218 | -60.4 |
| (millions of yen) | | | | |
+-------------------------------+---------------+---------------+----------+--------+
| Interest repaid (portion of | 67,531 | 43,875 | -23,656 | -35.0 |
| principal impaired) | | | | |
| (millions of yen) | | | | |
+-------------------------------+---------------+---------------+----------+--------+
| Allowance for credit losses | 96,994 | 60,658 | -36,336 | -37.5 |
| (millions of yen) | | | | |
+--------+----------------------+---------------+---------------+----------+--------+
6. Non-Consolidated Financial Statements
(1) Non-Consolidated Balance Sheets
+-----------------------+---------+---------------+--------+---------------+
| | | (millions of yen) |
+-----------------------+-------------------------+------------------------+
| | Previous Fiscal Year | Current Fiscal Year |
| | (as of March 31, 2009) |(as of March 31, 2010) |
+-----------------------+-------------------------+------------------------+
| Assets: | | | | |
+-----------------------+---------+---------------+--------+---------------+
| Current assets | | | | |
+-----------------------+---------+---------------+--------+---------------+
| Cash and deposits | | 42,935 | | 38,486 |
+-----------------------+---------+---------------+--------+---------------+
| Direct cash loans to | *1,2,6 | 861,517 | *1,2,6 | 589,477 |
| customers | | | | |
+-----------------------+---------+---------------+--------+---------------+
| Installment | | 465 | | 312 |
| receivables | | | | |
+-----------------------+---------+---------------+--------+---------------+
| Raw materials and | | 235 | | 214 |
| supplies | | | | |
+-----------------------+---------+---------------+--------+---------------+
| Prepaid expenses | | 765 | | 458 |
+-----------------------+---------+---------------+--------+---------------+
| Accrued interest | | 7,914 | | 5,693 |
| income on direct cash | | | | |
| loans to customers | | | | |
+-----------------------+---------+---------------+--------+---------------+
| Short-term loans | *4 | 49,992 | *4 | 19,989 |
| receivable | | | | |
+-----------------------+---------+---------------+--------+---------------+
| Accounts | | 1,455 | | 1,121 |
| receivable-other | | | | |
+-----------------------+---------+---------------+--------+---------------+
| Deposits | | 13,150 | | 33,285 |
+-----------------------+---------+---------------+--------+---------------+
| Other current assets | | 119 | | 2,704 |
+-----------------------+---------+---------------+--------+---------------+
| Allowance for credit | | -96,994 | | -60,658 |
| losses | | | | |
+-----------------------+---------+---------------+--------+---------------+
| Total current assets | | 881,552 | | 631,080 |
+-----------------------+---------+---------------+--------+---------------+
| Fixed assets | | | | |
+-----------------------+---------+---------------+--------+---------------+
| Tangible fixed | | | | |
| assets | | | | |
+-----------------------+---------+---------------+--------+---------------+
| Buildings' equity | | 5,310 | | 3,799 |
+-----------------------+---------+---------------+--------+---------------+
| Structures' equity | | 553 | | 248 |
+-----------------------+---------+---------------+--------+---------------+
| Vehicles and | | 10 | | 6 |
| delivery equipment' | | | | |
| equity | | | | |
+-----------------------+---------+---------------+--------+---------------+
| Equipment, furniture | | 4,094 | | 3,453 |
| and fixtures'equity | | | | |
+-----------------------+---------+---------------+--------+---------------+
| Land | | 22,688 | | 16,796 |
+-----------------------+---------+---------------+--------+---------------+
| Total tangible fixed | *5 | 32,655 | *5 | 24,302 |
| assets | | | | |
+-----------------------+---------+---------------+--------+---------------+
+-----------------------+---------+---------------+---------+---------------+
| | | (millions of yen) |
+-----------------------+-------------------------+-------------------------+
| | Previous Fiscal Year | Current Fiscal Year |
| | (as of March 31, 2009) | (as of March 31, 2010) |
+-----------------------+-------------------------+-------------------------+
| Intangible fixed | | | | |
| assets | | | | |
+-----------------------+---------+---------------+---------+---------------+
| Land leasehold | | 485 | | 438 |
| rights | | | | |
+-----------------------+---------+---------------+---------+---------------+
| Software | | 3,906 | | 3,601 |
+-----------------------+---------+---------------+---------+---------------+
| Telephone rights | | 141 | | 141 |
+-----------------------+---------+---------------+---------+---------------+
| Other intangible | | 639 | | 654 |
| fixed assets | | | | |
+-----------------------+---------+---------------+---------+---------------+
| Total intangible | | 5,171 | | 4,834 |
| fixed assets | | | | |
+-----------------------+---------+---------------+---------+---------------+
| Investments and | | | | |
| other assets | | | | |
+-----------------------+---------+---------------+---------+---------------+
| Investment | | 8,909 | | 2,662 |
| securities | | | | |
+-----------------------+---------+---------------+---------+---------------+
| Investments in | | 38,233 | | 39,436 |
| affiliates | | | | |
+-----------------------+---------+---------------+---------+---------------+
| Investments in | | 1 | | 0 |
| partnerships | | | | |
+-----------------------+---------+---------------+---------+---------------+
| Long-term prepaid | | 319 | | 86 |
| expenses | | | | |
+-----------------------+---------+---------------+---------+---------------+
| Investment real | | 446 | | 409 |
| estates | | | | |
+-----------------------+---------+---------------+---------+---------------+
| Leasehold deposits | | 4,121 | | 3,446 |
+-----------------------+---------+---------------+---------+---------------+
| Long-term deposits | | 5,580 | | 6,206 |
+-----------------------+---------+---------------+---------+---------------+
| Other investments | | 107 | | 109 |
| and | | | | |
| other assets | | | | |
+-----------------------+---------+---------------+---------+---------------+
| Total investments and | | 57,714 | | 52,355 |
| | | | | |
| other assets | | | | |
+-----------------------+---------+---------------+---------+---------------+
| Total fixed assets | | 95,540 | | 81,491 |
+-----------------------+---------+---------------+---------+---------------+
| Total assets | | 977,092 | | 712,571 |
+-----------------------+---------+---------------+---------+---------------+
+-----------------------+---------+--------------+---------+---------------+
| | | (millions of yen) |
+-----------------------+------------------------+-------------------------+
| | Previous Fiscal Year | Current Fiscal Year |
| |(as of March 31, 2009) | (as of March 31, 2010) |
+-----------------------+------------------------+-------------------------+
| Liabilities: | | | | |
+-----------------------+---------+--------------+---------+---------------+
| Current liabilities | | | | |
+-----------------------+---------+--------------+---------+---------------+
| Short-term | | 23,884 | | 27,728 |
| borrowings from | | | | |
| affiliates | | | | |
+-----------------------+---------+--------------+---------+---------------+
| Current portion of | | - | | 9,068 |
| bonds | | | | |
+-----------------------+---------+--------------+---------+---------------+
| Current portion of | *1 | 91,595 | *1 | 80,406 |
| long-term borrowings | | | | |
+-----------------------+---------+--------------+---------+---------------+
| Accounts | | 23,067 | | 21,744 |
| payable-other | | | | |
+-----------------------+---------+--------------+---------+---------------+
| Accrued expenses | | 5,183 | | 5,781 |
+-----------------------+---------+--------------+---------+---------------+
| Income taxes payable | | 204 | | 164 |
+-----------------------+---------+--------------+---------+---------------+
| Deposit received | | 308 | | 328 |
+-----------------------+---------+--------------+---------+---------------+
| Unearned income | | 2,824 | | 2,693 |
+-----------------------+---------+--------------+---------+---------------+
| Allowance for bonuses | | 638 | | 375 |
+-----------------------+---------+--------------+---------+---------------+
| Allowance for loss | | - | | 11,276 |
| on transfer of | | | | |
| receivables | | | | |
+-----------------------+---------+--------------+---------+---------------+
| Other current | | 103 | | 172 |
| liabilities | | | | |
+-----------------------+---------+--------------+---------+---------------+
| Total current | | 147,806 | | 159,734 |
| liabilities | | | | |
+-----------------------+---------+--------------+---------+---------------+
| Fixed liabilities | | | | |
+-----------------------+---------+--------------+---------+---------------+
| Bonds payable | | 88,567 | | 83,470 |
+-----------------------+---------+--------------+---------+---------------+
| Convertible | | 70,000 | | 42,400 |
| bond-type bonds with | | | | |
| subscription rights | | | | |
| to shares | | | | |
+-----------------------+---------+--------------+---------+---------------+
| Long-term borrowings | *1 | 115,579 | | 38 |
+-----------------------+---------+--------------+---------+---------------+
| Long-term accounts | | 14 | | 747 |
| payable-other | | | | |
+-----------------------+---------+--------------+---------+---------------+
| Allowance for losses | | 403,357 | | 272,953 |
| for refund of | | | | |
| interest received | | | | |
| from customers | | | | |
+-----------------------+---------+--------------+---------+---------------+
| Allowance for | | 3,605 | | 3,874 |
| retirement benefits | | | | |
| of employees | | | | |
+-----------------------+---------+--------------+---------+---------------+
| Allowance for | | 147 | | 178 |
| retirement benefits | | | | |
| of directors and | | | | |
| corporate auditors | | | | |
+-----------------------+---------+--------------+---------+---------------+
| Long-term unearned | | 2,878 | | 109 |
| income | | | | |
+-----------------------+---------+--------------+---------+---------------+
| Other fixed | | 479 | | 380 |
| liabilities | | | | |
+-----------------------+---------+--------------+---------+---------------+
| Total fixed | | 684,626 | | 404,149 |
| liabilities | | | | |
+-----------------------+---------+--------------+---------+---------------+
| Total liabilities | | 832,432 | | 563,883 |
+-----------------------+---------+--------------+---------+---------------+
+-----------------------+---------+--------------+---------+---------------+
| | | (millions of yen) |
+-----------------------+------------------------+-------------------------+
| | Previous Fiscal Year | Current Fiscal Year |
| |(as of March 31, 2009) | (as of March 31, 2010) |
+-----------------------+------------------------+-------------------------+
| Net assets: | | | | |
+-----------------------+---------+--------------+---------+---------------+
| Shareholders' equity | | | | |
+-----------------------+---------+--------------+---------+---------------+
| Capital stock | | 30,478 | | 30,478 |
+-----------------------+---------+--------------+---------+---------------+
| Capital surplus | | | | |
+-----------------------+---------+--------------+---------+---------------+
| Additional paid-in | | 52,263 | | 52,263 |
| capital | | | | |
+-----------------------+---------+--------------+---------+---------------+
| Total capital surplus | | 52,263 | | 52,263 |
| | | | | |
+-----------------------+---------+--------------+---------+---------------+
| Retained earnings | | | | |
+-----------------------+---------+--------------+---------+---------------+
| Legal reserve | | 7,619 | | 7,619 |
+-----------------------+---------+--------------+---------+---------------+
| Other retained | | | | |
| earnings | | | | |
+-----------------------+---------+--------------+---------+---------------+
| General reserve | | 365,961 | | 85,961 |
+-----------------------+---------+--------------+---------+---------------+
| Retained earnings | | -273,793 | | 9,080 |
| brought forward | | | | |
+-----------------------+---------+--------------+---------+---------------+
| Total retained | | 99,787 | | 102,660 |
| earnings | | | | |
+-----------------------+---------+--------------+---------+---------------+
| Treasury stock | | -36,469 | | -36,469 |
+-----------------------+---------+--------------+---------+---------------+
| Total shareholders' | | 146,059 | | 148,932 |
| equity | | | | |
+-----------------------+---------+--------------+---------+---------------+
| Valuation and | | | | |
| foreign currency | | | | |
| translation | | | | |
| adjustments | | | | |
+-----------------------+---------+--------------+---------+---------------+
| Valuation difference | | -1,541 | | -447 |
| on available-for-sale | | | | |
| securities | | | | |
+-----------------------+---------+--------------+---------+---------------+
| Total valuation and | | -1,541 | | -447 |
| foreign currency | | | | |
| translation | | | | |
| adjustments | | | | |
+-----------------------+---------+--------------+---------+---------------+
| Subscription rights | | 141 | | 202 |
| to shares | | | | |
+-----------------------+---------+--------------+---------+---------------+
| Total net assets | | 144,659 | | 148,687 |
+-----------------------+---------+--------------+---------+---------------+
| Total liabilities and | | 977,092 | | 712,571 |
| net assets | | | | |
+-----------------------+---------+--------------+---------+---------------+
(2) Non-Consolidated Statements of Income
+-----------------------+---------+--------------+---------+---------------+
| | | (millions of yen) |
+-----------------------+------------------------+-------------------------+
| | Previous Fiscal Year | Current Fiscal Year |
| |(from April 1, 2008 to | (from April 1, 2009 to |
| | March 31, 2009) | March 31, 2010) |
+-----------------------+------------------------+-------------------------+
| Operating revenues | | | | |
+-----------------------+---------+--------------+---------+---------------+
| Interest income on | | 178,337 | | 113,581 |
| direct cash loans | | | | |
+-----------------------+---------+--------------+---------+---------------+
| Credit card revenues | | 69 | | 57 |
+-----------------------+---------+--------------+---------+---------------+
| Other financial | | | | |
| revenues | | | | |
+-----------------------+---------+--------------+---------+---------------+
| Interest on bank | | 427 | | 51 |
| deposits | | | | |
+-----------------------+---------+--------------+---------+---------------+
| Interest on loans | | 329 | | 36 |
| other than direct | | | | |
| cash loans | | | | |
+-----------------------+---------+--------------+---------+---------------+
| Other | | 1,822 | | 697 |
+-----------------------+---------+--------------+---------+---------------+
| Total other financial | | 2,578 | | 784 |
| revenues | | | | |
+-----------------------+---------+--------------+---------+---------------+
| Other operating | | | | |
| revenues | | | | |
+-----------------------+---------+--------------+---------+---------------+
| Collection from bad | | 3,235 | | 3,750 |
| debts previously | | | | |
| written-off | | | | |
+-----------------------+---------+--------------+---------+---------------+
| Real estate rent | | 993 | | 893 |
+-----------------------+---------+--------------+---------+---------------+
| Other | | 232 | | 338 |
+-----------------------+---------+--------------+---------+---------------+
| Total other operating | | 4,459 | | 4,981 |
| revenues | | | | |
+-----------------------+---------+--------------+---------+---------------+
| Total operating | | 185,443 | | 119,403 |
| revenues | | | | |
+-----------------------+---------+--------------+---------+---------------+
+-----------------------+---------+--------------+---------+---------------+
| | | (millions of yen) |
+-----------------------+------------------------+-------------------------+
| | Previous Fiscal Year | Current Fiscal Year |
| |(from April 1, 2008 to | (from April 1, 2009 to |
| | March 31, 2009) | March 31, 2010) |
+-----------------------+------------------------+-------------------------+
| Operating expenses | | | | |
+-----------------------+---------+--------------+---------+---------------+
| Financial expenses | | | | |
+-----------------------+---------+--------------+---------+---------------+
| Borrowing interest | | 8,417 | | 4,578 |
| expenses | | | | |
+-----------------------+---------+--------------+---------+---------------+
| Bond interest | | 10,188 | | 5,879 |
| expenses | | | | |
+-----------------------+---------+--------------+---------+---------------+
| Other financial | | 987 | | 1,868 |
| expenses | | | | |
+-----------------------+---------+--------------+---------+---------------+
| Total financial | | 19,593 | | 12,325 |
| expenses | | | | |
+-----------------------+---------+--------------+---------+---------------+
| Other operating | | | | |
| expenses | | | | |
+-----------------------+---------+--------------+---------+---------------+
| Advertising expenses | | 4,237 | | 2,922 |
+-----------------------+---------+--------------+---------+---------------+
| Bad debts expenses | | 406 | | - |
+-----------------------+---------+--------------+---------+---------------+
| Provisions for | | 96,994 | | 34,968 |
| credit losses | | | | |
+-----------------------+---------+--------------+---------+---------------+
| Provisions for | | 229,662 | | - |
| losses for refund of | | | | |
| interest received | | | | |
| from customers | | | | |
+-----------------------+---------+--------------+---------+---------------+
| Salaries and bonuses | | 13,363 | | 10,918 |
+-----------------------+---------+--------------+---------+---------------+
| Provisions for | | 638 | | 375 |
| bonuses | | | | |
+-----------------------+---------+--------------+---------+---------------+
| Provisions for | | 754 | | 763 |
| retirement benefits | | | | |
| of employees | | | | |
+-----------------------+---------+--------------+---------+---------------+
| Provisions for | | 44 | | 38 |
| retirement benefits | | | | |
| of directors and | | | | |
| corporate auditors | | | | |
+-----------------------+---------+--------------+---------+---------------+
| Welfare expenses | | 1,858 | | 1,416 |
+-----------------------+---------+--------------+---------+---------------+
| Rent | | 5,144 | | 3,904 |
+-----------------------+---------+--------------+---------+---------------+
| Depreciation and | | 3,176 | | 3,045 |
| amortization | | | | |
+-----------------------+---------+--------------+---------+---------------+
| Handling charges | | 11,904 | | 9,500 |
+-----------------------+---------+--------------+---------+---------------+
| Communication | | 3,267 | | 2,630 |
| expenses | | | | |
+-----------------------+---------+--------------+---------+---------------+
| Other | | 6,016 | | 4,210 |
+-----------------------+---------+--------------+---------+---------------+
| Total other operating | | 377,461 | | 74,690 |
| expenses | | | | |
+-----------------------+---------+--------------+---------+---------------+
| Total operating | | 397,054 | | 87,015 |
| expenses | | | | |
+-----------------------+---------+--------------+---------+---------------+
| Operating income | | -211,611 | | 32,388 |
+-----------------------+---------+--------------+---------+---------------+
+-----------------------+---------+--------------+---------+---------------+
| | | (millions of yen) |
+-----------------------+------------------------+-------------------------+
| | Previous Fiscal Year | Current Fiscal Year |
| |(from April 1, 2008 to | (from April 1, 2009 to |
| | March 31, 2009) | March 31, 2010) |
+-----------------------+------------------------+-------------------------+
| Non-operating income | | | | |
+-----------------------+---------+--------------+---------+---------------+
| Dividends income | | 447 | | 247 |
+-----------------------+---------+--------------+---------+---------------+
| Profit on | | 115 | | 112 |
| investments in | | | | |
| partnerships | | | | |
+-----------------------+---------+--------------+---------+---------------+
| Interest on income | | 174 | | - |
| taxes refunds | | | | |
+-----------------------+---------+--------------+---------+---------------+
| Miscellaneous income | | 109 | | 637 |
+-----------------------+---------+--------------+---------+---------------+
| Total non-operating | | 845 | | 997 |
| income | | | | |
+-----------------------+---------+--------------+---------+---------------+
| Non-operating | | | | |
| expenses | | | | |
+-----------------------+---------+--------------+---------+---------------+
| Loss on disposal or | | 182 | | 45 |
| sales of fixed assets | | | | |
+-----------------------+---------+--------------+---------+---------------+
| Foreign exchange | | 1,262 | | 992 |
| losses | | | | |
+-----------------------+---------+--------------+---------+---------------+
| Bond issuance cost | | 1,798 | | - |
+-----------------------+---------+--------------+---------+---------------+
| Option fees | | 1,709 | | - |
+-----------------------+---------+--------------+---------+---------------+
| Miscellaneous loss | | 24 | | 52 |
+-----------------------+---------+--------------+---------+---------------+
| Total non-operating | | 4,974 | | 1,090 |
| expenses | | | | |
+-----------------------+---------+--------------+---------+---------------+
| Ordinary income | | -215,740 | | 32,295 |
+-----------------------+---------+--------------+---------+---------------+
+-----------------------+---------+--------------+---------+---------------+
| | | (millions of yen) |
+-----------------------+------------------------+-------------------------+
| | Previous Fiscal Year | Current Fiscal Year |
| |(from April 1, 2008 to | (from April 1, 2009 to |
| | March 31, 2009) | March 31, 2010) |
+-----------------------+------------------------+-------------------------+
| Extraordinary income | | | | |
+-----------------------+---------+--------------+---------+---------------+
| Gain on sales of | | 495 | | 667 |
| investment securities | | | | |
+-----------------------+---------+--------------+---------+---------------+
| Gain on redemption | | - | | 4,475 |
| of bonds | | | | |
+-----------------------+---------+--------------+---------+---------------+
| Gain on sales of | | - | *2 | 808 |
| fixed assets | | | | |
+-----------------------+---------+--------------+---------+---------------+
| Other | | 31 | | - |
+-----------------------+---------+--------------+---------+---------------+
| Total extraordinary | | 526 | | 5,950 |
| income | | | | |
+-----------------------+---------+--------------+---------+---------------+
| Extraordinary loss | | | | |
+-----------------------+---------+--------------+---------+---------------+
| Loss on devaluation | | 716 | | 811 |
| of investment | | | | |
| securities | | | | |
+-----------------------+---------+--------------+---------+---------------+
| Loss on sales of | | 124 | | 900 |
| investment securities | | | | |
+-----------------------+---------+--------------+---------+---------------+
| Impairment loss | *3 | 386 | *3 | 6,958 |
+-----------------------+---------+--------------+---------+---------------+
| Loss on closing of | *4 | 1,896 | *4 | 1,603 |
| branch offices | | | | |
+-----------------------+---------+--------------+---------+---------------+
| Loss on commitment | *5 | 2,165 | | - |
| facility cancellation | | | | |
+-----------------------+---------+--------------+---------+---------------+
| Loss on redemption | | 10,475 | | - |
| of | | | | |
| bonds | | | | |
+-----------------------+---------+--------------+---------+---------------+
| Loss on transfer of | | - | *6 | 8,807 |
| receivables | | | | |
+-----------------------+---------+--------------+---------+---------------+
| Provisions for loss | | - | *7 | 11,276 |
| on transfer of | | | | |
| receivables | | | | |
+-----------------------+---------+--------------+---------+---------------+
| Other | | 173 | | 153 |
+-----------------------+---------+--------------+---------+---------------+
| Total extraordinary | | 15,935 | | 30,508 |
| loss | | | | |
+-----------------------+---------+--------------+---------+---------------+
| Income before income | | -231,149 | | 7,737 |
| taxes | | | | |
+-----------------------+---------+--------------+---------+---------------+
| Income taxes-current | | 348 | | 142 |
+-----------------------+---------+--------------+---------+---------------+
| Income taxes-deferred | | 25,435 | | - |
+-----------------------+---------+--------------+---------+---------------+
| Total income tax | | 25,784 | | 142 |
+-----------------------+---------+--------------+---------+---------------+
| Net income | | -256,933 | | 7,595 |
+-----------------------+---------+--------------+---------+---------------+
(3) Non-Consolidated Statement of Changes in Net Assets
+-----------------------+------------------------+-----------------------+
| | | (millions of yen) |
+-----------------------+------------------------+-----------------------+
| | Previous Fiscal Year | Current Fiscal Year |
| |(from April 1, 2008 to | (from April 1, 2009 |
| | March 31, 2009) | to March 31, 2010) |
+-----------------------+------------------------+-----------------------+
| Shareholders' equity | | |
+-----------------------+------------------------+-----------------------+
| Capital stock | | |
+-----------------------+------------------------+-----------------------+
| Beginning Balance | 30,478 | 30,478 |
+-----------------------+------------------------+-----------------------+
| Changes of items | | |
| during | | |
+-----------------------+------------------------+-----------------------+
| Total changes | - | - |
| of items during | | |
+-----------------------+------------------------+-----------------------+
| Ending Balance | 30,478 | 30,478 |
+-----------------------+------------------------+-----------------------+
| Capital surplus | | |
+-----------------------+------------------------+-----------------------+
| Additional paid-in | | |
| capital | | |
+-----------------------+------------------------+-----------------------+
| Beginning Balance | 52,263 | 52,263 |
| | | |
+-----------------------+------------------------+-----------------------+
| Changes of items | | |
| during | | |
+-----------------------+------------------------+-----------------------+
| Total | - | - |
| changes of items | | |
| during | | |
+-----------------------+------------------------+-----------------------+
| Ending Balance | 52,263 | 52,263 |
+-----------------------+------------------------+-----------------------+
| Total capital surplus | | |
+-----------------------+------------------------+-----------------------+
| Beginning Balance | 52,263 | 52,263 |
+-----------------------+------------------------+-----------------------+
| Changes of items | | |
| during | | |
+-----------------------+------------------------+-----------------------+
| Total | - | - |
| changes of items | | |
| during | | |
+-----------------------+------------------------+-----------------------+
| Ending Balance | 52,263 | 52,263 |
+-----------------------+------------------------+-----------------------+
| Retained earnings | | |
+-----------------------+------------------------+-----------------------+
| Legal reserve | | |
+-----------------------+------------------------+-----------------------+
| Beginning Balance | 7,619 | 7,619 |
+-----------------------+------------------------+-----------------------+
| Changes of items | | |
| during | | |
+-----------------------+------------------------+-----------------------+
| Total | - | - |
| changes of items | | |
| during | | |
+-----------------------+------------------------+-----------------------+
| Ending Balance | 7,619 | 7,619 |
+-----------------------+------------------------+-----------------------+
| Other retained | | |
| earnings | | |
+-----------------------+------------------------+-----------------------+
| General reserve | | |
+-----------------------+------------------------+-----------------------+
| Beginning Balance | 365,961 | 365,961 |
+-----------------------+------------------------+-----------------------+
| Changes of items | | |
| during | | |
+-----------------------+------------------------+-----------------------+
| General reserve | - | -280,000 |
+-----------------------+------------------------+-----------------------+
| Total changes of | - | -280,000 |
| items during | | |
+-----------------------+------------------------+-----------------------+
| Ending Balance | 365,961 | 85,961 |
+-----------------------+------------------------+-----------------------+
+----------+-----------------------+------------------------+-----------------------+
| | | (millions of yen) |
+----------------------------------+------------------------+-----------------------+
| | Previous Fiscal Year | Current Fiscal Year |
| |(from April 1, 2008 to | (from April 1, 2009 |
| | March 31, 2009) | to March 31, 2010) |
+----------------------------------+------------------------+-----------------------+
| Retained earnings | | |
| brought forward | | |
+----------------------------------+------------------------+-----------------------+
| Beginning Balance | 14,609 | -273,793 |
+----------------------------------+------------------------+-----------------------+
| Changes of items during | | |
+----------------------------------+------------------------+-----------------------+
| General reserve | - | 280,000 |
+----------------------------------+------------------------+-----------------------+
| Dividends | -16,464 | -4,722 |
+----------------------------------+------------------------+-----------------------+
| Net income | -256,933 | 7,595 |
+----------------------------------+------------------------+-----------------------+
| Cancellation of treasury stock | -15,005 | - |
+----------------------------------+------------------------+-----------------------+
| Total changes of items during | -288,402 | 282,873 |
+----------------------------------+------------------------+-----------------------+
| Ending Balance | -273,793 | 9,080 |
+----------------------------------+------------------------+-----------------------+
| Total retained earnings | | |
+----------------------------------+------------------------+-----------------------+
| Beginning Balance | 388,188 | 99,787 |
+----------------------------------+------------------------+-----------------------+
| Changes of items during | | |
+----------------------------------+------------------------+-----------------------+
| General reserve | - | - |
+----------------------------------+------------------------+-----------------------+
| Dividends | -16,464 | -4,722 |
+----------------------------------+------------------------+-----------------------+
| Net income | -256,933 | 7,595 |
+----------------------------------+------------------------+-----------------------+
| Cancellation of treasury stock | -15,005 | - |
+----------------------------------+------------------------+-----------------------+
| Total changes of items during | -288,402 | 2,873 |
+----------------------------------+------------------------+-----------------------+
| Ending Balance | 99,787 | 102,660 |
+----------------------------------+------------------------+-----------------------+
| | Treasury stock | | |
+----------+-----------------------+------------------------+-----------------------+
| | Beginning Balance | -48,248 | -36,469 |
+----------+-----------------------+------------------------+-----------------------+
| | Changes of items | | |
| | during | | |
+----------+-----------------------+------------------------+-----------------------+
| | Acquisition of | -3,225 | -0 |
| | treasury stock | | |
+----------+-----------------------+------------------------+-----------------------+
| | Cancellation of | 15,005 | - |
| | treasury stock | | |
+----------+-----------------------+------------------------+-----------------------+
| | Total changes of | 11,779 | -0 |
| | items during | | |
+----------+-----------------------+------------------------+-----------------------+
| | Ending Balance | -36,469 | -36,469 |
+----------+-----------------------+------------------------+-----------------------+
| | | | |
+----------+-----------------------+------------------------+-----------------------+
+-----------------------+-----------------------+-----------------------+
| | | (millions of yen) |
+-----------------------+-----------------------+-----------------------+
| | Previous Fiscal Year | Current Fiscal Year |
| | (from April 1, 2008 | (from April 1, 2009 |
| | to March 31, 2009) | to March 31, 2010) |
+-----------------------+-----------------------+-----------------------+
| Total shareholders' | | |
| equity | | |
+-----------------------+-----------------------+-----------------------+
| Beginning Balance | 422,682 | 146,059 |
+-----------------------+-----------------------+-----------------------+
| Changes of items | | |
| during | | |
+-----------------------+-----------------------+-----------------------+
| Dividends | -16,464 | -4,722 |
+-----------------------+-----------------------+-----------------------+
| Net income | -256,933 | 7,595 |
+-----------------------+-----------------------+-----------------------+
| Acquisition of | -3,225 | -0 |
| treasury stock | | |
+-----------------------+-----------------------+-----------------------+
| Cancellation of | - | - |
| treasury stock | | |
+-----------------------+-----------------------+-----------------------+
| Total changes of | -276,623 | 2,873 |
| items during | | |
+-----------------------+-----------------------+-----------------------+
| Ending Balance | 146,059 | 148,932 |
+-----------------------+-----------------------+-----------------------+
| Valuation and foreign | | |
| currency translation | | |
| adjustments | | |
+-----------------------+-----------------------+-----------------------+
| Valuation difference | | |
| on available-for-sale | | |
| securities | | |
+-----------------------+-----------------------+-----------------------+
| Beginning Balance | 1,791 | -1,541 |
+-----------------------+-----------------------+-----------------------+
| Changes of items | | |
| during | | |
+-----------------------+-----------------------+-----------------------+
| Net changes of | -3,332 | 1,094 |
| items other than | | |
| shareholders' equity | | |
+-----------------------+-----------------------+-----------------------+
| Total changes of | -3,332 | 1,094 |
| items during | | |
+-----------------------+-----------------------+-----------------------+
| Ending Balance | -1,541 | -447 |
+-----------------------+-----------------------+-----------------------+
| Deferred gains or | | |
| losses on hedges | | |
+-----------------------+-----------------------+-----------------------+
| Beginning Balance | 4,383 | - |
+-----------------------+-----------------------+-----------------------+
| Changes of items | | |
| during | | |
+-----------------------+-----------------------+-----------------------+
| Net changes of | -4,383 | - |
| items other | | |
| than shareholders' | | |
| equity | | |
+-----------------------+-----------------------+-----------------------+
| Total changes of | -4,383 | - |
| items during | | |
+-----------------------+-----------------------+-----------------------+
| Ending Balance | - | - |
+-----------------------+-----------------------+-----------------------+
| |
| |
+-----------------------+-----------------------+-----------------------+
+-----------------------+-----------------------+-----------------------+
| | | (millions of yen) |
+-----------------------+-----------------------+-----------------------+
| | Previous Fiscal Year | Current Fiscal Year |
| | (from April 1, 2008 | (from April 1, 2009 |
| | to March 31, 2009) | to March 31, 2010) |
+-----------------------+-----------------------+-----------------------+
| Total valuation and | | |
| foreign | | |
| currency translation | | |
| adjustments | | |
+-----------------------+-----------------------+-----------------------+
| Beginning Balance | 6,174 | -1,541 |
+-----------------------+-----------------------+-----------------------+
| Changes of items | | |
| during | | |
+-----------------------+-----------------------+-----------------------+
| Net changes of | -7,715 | 1,094 |
| items other | | |
| than shareholders' | | |
| equity | | |
+-----------------------+-----------------------+-----------------------+
| Total changes of | -7,715 | 1,094 |
| items during | | |
+-----------------------+-----------------------+-----------------------+
| Ending Balance | -1,541 | -447 |
+-----------------------+-----------------------+-----------------------+
| Subscription rights | | |
| to shares | | |
+-----------------------+-----------------------+-----------------------+
| Beginning Balance | 41 | 141 |
+-----------------------+-----------------------+-----------------------+
| Changes of items | | |
| during | | |
+-----------------------+-----------------------+-----------------------+
| Net changes of | 101 | 61 |
| items other | | |
| than shareholders' | | |
| equity | | |
+-----------------------+-----------------------+-----------------------+
| Total changes of | 101 | 61 |
| items during | | |
+-----------------------+-----------------------+-----------------------+
| Ending Balance | 141 | 202 |
+-----------------------+-----------------------+-----------------------+
| Total net assets | | |
+-----------------------+-----------------------+-----------------------+
| Beginning Balance | 428,897 | 144,659 |
+-----------------------+-----------------------+-----------------------+
| Changes of items | | |
| during | | |
+-----------------------+-----------------------+-----------------------+
| Dividends | -16,464 | -4,722 |
+-----------------------+-----------------------+-----------------------+
| Net income | -256,933 | 7,595 |
+-----------------------+-----------------------+-----------------------+
| Acquisition | -3,225 | -0 |
| of treasury stock | | |
+-----------------------+-----------------------+-----------------------+
| Net changes of | -7,615 | 1,155 |
| items other | | |
| than shareholders' | | |
| equity | | |
+-----------------------+-----------------------+-----------------------+
| Total changes of | -284,237 | 4,028 |
| items during | | |
+-----------------------+-----------------------+-----------------------+
| Ending Balance | 144,659 | 148,687 |
+-----------------------+-----------------------+-----------------------+
Notes on the Going-concern Assumption
+-----------------------------------+-----------------------------------+
|Previous Consolidated Fiscal Year | Current Consolidated Fiscal Year |
| (from April 1, 2008 to March 31, | (from April 1, 2009 to March 31, |
| 2009) | 2010) |
+-----------------------------------+-----------------------------------+
| - | The Group had been conducting |
| | funding through various, |
| | expeditious and flexible |
| | measures, such as borrowing from |
| | financial institutions, issuance |
| | of corporate bonds and |
| | securitization of direct cash |
| | loans to customers. However, |
| | while financial situation was |
| | becoming more and more severe due |
| | to sub-prime loan issue in the |
| | U.S. and Lehman Brother's shock |
| | etc., funding environment |
| | surrounding the Group became more |
| | severe with financial needs for |
| | high-level interest refund claims |
| | and with concerns about impact of |
| | loan volume control that is |
| | expected to be introduced at the |
| | full enforcement of Money Lending |
| | Business Law scheduled by June |
| | 2010. In addition, the Company |
| | was downgraded against this |
| | background to give rise to |
| | conflict against covenant for |
| | early redemption and other events |
| | for a part of borrowings. |
| | In above mentioned situation, the |
| | Group considered various funding |
| | methods to improve cash position. |
| | As a result, in preparation for |
| | the early redemption requests of |
| | convertible bond-type bonds with |
| | subscription rights to shares, we |
| | conducted exchange offer of such |
| | bonds during the third quarter |
| | under review on a consolidated |
| | basis. The Group also conducted |
| | sale of listed securities and |
| | sale of a part of restructured |
| | loans' included in direct cash |
| | loans to customers. Despite these |
| | successful conducts, new funding |
| | continues to be extremely |
| | difficult due to extending |
| | economic slowdown, unpredictable |
| | future of the industry, |
| | high-level interest refund claims |
| | and additional downgrade. |
| | As explained above, a material |
| | question about the Group's |
| | going-concern assumption exists |
| | under current circumstances. |
| | The Group responds to said |
| | circumstances with approaches |
| | below: |
+-----------------------------------+-----------------------------------+
+-----------------------------------+-----------------------------------+
|Previous Consolidated Fiscal Year | Current Consolidated Fiscal Year |
| (from April 1, 2008 to March 31, | (from April 1, 2009 to March 31, |
| 2009) | 2010) |
+-----------------------------------+-----------------------------------+
| - | 1. Procurement of necessary funds |
| | and stabilizing cash position |
| | As severe funding environment is |
| | expected to continue for the time |
| | being, the Group endeavors to |
| | procure necessary funds for |
| | near-term operation by conducting |
| | measures such as transfer of real |
| | estate properties held by the |
| | Group and loans receivable, as |
| | well as strives to stabilize |
| | total cash position through |
| | efforts including reducing burden |
| | of existing bonds and considering |
| | strategic operational tie-up to |
| | secure new financing method. |
| | 2. Improvement of business |
| | streamlining |
| | The Group further advances |
| | existing business streamlining |
| | measures such as scrap-and-build |
| | reduction of branch offices as we |
| | have been conducting continuously |
| | and systematically, as well as |
| | making other efforts in business |
| | streamlining such as cost cut by |
| | reviewing contracts related to |
| | payments. |
| | Regarding transfer of real estate |
| | properties held by the Group |
| | among measures to procure |
| | necessary funds and to stabilize |
| | cash position mentioned above, we |
| | have selected properties for |
| | transfer from properties held by |
| | the Company and by TDS Co., Ltd.. |
| | We are at the stage of deciding |
| | sale price by bidding and |
| | currently progressing procedures |
| | toward the concluding of |
| | contracts. |
| | Regarding sale of loans |
| | receivable, we have surely |
| | progressed concrete discussions |
| | with counterparties as planned |
| | and have obtained a Letter of |
| | Intent to purchase loans |
| | receivable as a part of |
| | procedures to determine loans |
| | receivable in scope and transfer |
| | price. |
| | We consider that the question |
| | about the Group's going concern |
| | assumption can be eliminated by |
| | surely conducting further |
| | business streamlining measures in |
| | addition to continuously |
| | advancing measures for |
| | stabilizing total cash position. |
| | However, with economic conditions |
| | remaining severe and with |
| | influence of the revised Money |
| | Lending Business Law, it is not |
| | clear that funding environment |
| | surrounding the Group will change |
| | for better. Thus a material |
| | uncertainty about the Group's |
| | going-concern assumption is |
| | currently recognized. |
| | However, consolidated financial |
| | statements are made based on |
| | going-concern assumption and they |
| | do not reflect the material |
| | uncertainty about the Group's |
| | going-concern assumption. |
+-----------------------------------+-----------------------------------+
Significant Accounting Policies
+-----------------------------------+-----------------------------------+
| Previous Fiscal Year | Current Fiscal Year |
| (from April 1, 2008 to March 31, | (from April 1, 2009 to March 31, |
| 2009) | 2010) |
+-----------------------------------+-----------------------------------+
| 1. Basis and method of valuation | 1. Basis and method of valuation |
| of securities | of securities |
+-----------------------------------+-----------------------------------+
| (1) Investments in subsidiaries | (1) Investments in subsidiaries |
| and affiliates: | and affiliates: |
+-----------------------------------+-----------------------------------+
| Cost is determined by the moving | The same as the previous fiscal |
| average method. | year. |
+-----------------------------------+-----------------------------------+
| (2) Other securities: | (2) Other securities: |
+-----------------------------------+-----------------------------------+
| Where there is a market value; | Where there is a market value; |
+-----------------------------------+-----------------------------------+
| Market value as determined by the | The same as the previous fiscal |
| quoted price at the end of the | year. |
| fiscal year. The difference | |
| between the acquisition cost and | |
| the market value, excluding the | |
| related income taxes, is included | |
| directly in net assets, and cost | |
| of securities sold is computed | |
| using the moving average method. | |
+-----------------------------------+-----------------------------------+
| Where there is no market value; | Where there is no market value; |
+-----------------------------------+-----------------------------------+
| Cost is determined by the moving | The same as the previous fiscal |
| average method. | year. |
+-----------------------------------+-----------------------------------+
| 2. Basis and method of valuation | 2. Basis and method of valuation |
| of inventories | of inventories |
+-----------------------------------+-----------------------------------+
| Standard and method of | Standard and method of |
| inventories evaluation | inventories evaluation |
| As for raw materials and | As for raw materials and |
| supplies, last invoice cost | supplies, last invoice cost |
| method, which requires to write | method, which requires to write |
| down book value when there is a | down book value when there is a |
| downturn of profitability, is | downturn of profitability, is |
| adopted. | adopted. |
| (Changes in accounting method) | |
| From the current fiscal year, the | |
| Accounting Standard for | |
| Measurement of Inventories (ASBJ | |
| Statement No.9 July 5, 2006) is | |
| adopted. There is no impact of | 3. Depreciation of the fixed |
| the said change. | assets |
| | (1) Tangible fixed assets |
| 3. Depreciation of the fixed | |
| assets | The same as the previous fiscal |
| (1) Tangible fixed assets | year. |
| | |
| Depreciation is mainly computed | |
| on the declining-balance method | |
| certain, based on the estimated | |
| useful lives of assets except | |
| that the depreciation method for | |
| buildings (excluding auxiliary | |
| facilities attached to | |
| buildings), which were acquired | (2) Intangible fixed assets |
| on or after April 1, 1998, is the | |
| straight-line method. The range | The same as the previous fiscal |
| of useful lives is from 15 to 50 | year. |
| years for buildings, from 10 to | |
| 30 years for structures, and from | |
| 4 to 15 years for equipment, | |
| furniture and fixtures. | |
| | 4. - |
| (2) Intangible fixed assets | |
| | |
| Software costs for internal use | |
| are amortized on the | |
| straight-line method for 5 years, | |
| which is the estimated useful | |
| life. Other intangible fixed | |
| assets are amortized on the | |
| straight-line method. | |
| | |
| 4. Accounting for deferred assets | |
| | |
| All of bond issuance cost was | |
| posted as expenses at the | |
| time of payment. | |
+-----------------------------------+-----------------------------------+
+-----------------------------------+-----------------------------------+
| Previous Fiscal Year | Current Fiscal Year |
| (from April 1, 2008 to March 31, | (from April 1, 2009 to March 31, |
| 2009) | 2010) |
+-----------------------------------+-----------------------------------+
| 5. Basis of calculating | 5. Basis of calculating |
| allowances | allowances |
+-----------------------------------+-----------------------------------+
| (1) Allowance for credit losses | (1) Allowance for credit losses |
+-----------------------------------+-----------------------------------+
| In providing for possible credit | The same as the previous fiscal |
| losses on direct cash loans, the | year. |
| Company records an allowance for | |
| loans (including delinquent loans | |
| past due 30 days or less) based | |
| on an actual percentage of | |
| write-offs. With respect to | |
| specific loans classified as | |
| doubtful such as delinquent loans | |
| past due for longer periods, the | |
| Company records an allowance for | |
| credit losses thereon at the | |
| estimated uncollectible amounts | |
| based on the write-offs of such | |
| loans with similar credit risks | |
| ratings over a certain period. | |
+-----------------------------------+-----------------------------------+
| | |
+-----------------------------------+-----------------------------------+
| (2) Allowance for losses for | (2) Allowance for losses for |
| refund of interest received from | refund of interest received from |
| customers | customers |
+-----------------------------------+-----------------------------------+
| In providing for possible losses | The same as the previous fiscal |
| for refund of interest received | year. |
| from customers exceeding the | |
| upper limit of interest rate | |
| prescribed under the Interest | |
| Rate Restriction Law, the Company | |
| records an allowance for losses | |
| for refund of interest received | |
| from customers based on the | |
| anticipated losses for refund | |
| reclaim from customers at the end | |
| of the current fiscal year. | |
+-----------------------------------+-----------------------------------+
| (3) Allowance for bonuses | (3) Allowance for bonuses |
+-----------------------------------+-----------------------------------+
| In providing for bonuses payable | The same as the previous fiscal |
| to employees, the Company records | year. |
| an allowance for current fiscal | |
| year portion thereof based on the | |
| expected payment of bonuses for | (4) Allowance for loss on |
| employees. | transfer receivables |
| | In providing for losses stemmed |
| (4) - | from sale of loans receivable, |
| | the Company records an allowance |
| | for loss on transfer of |
| | receivable based on the |
| | anticipated (estimated) losses at |
| | the end of the current |
| | consolidated fiscal year. |
| | |
+-----------------------------------+-----------------------------------+
| (5) Allowance for retirement | (5) Allowance for retirement |
| benefits of employees | benefits of employees |
+-----------------------------------+-----------------------------------+
| The Company records an allowance | The Company records an allowance |
| for retirement benefits based on | for retirement benefits based on |
| projected benefit obligations and | projected benefit obligations and |
| pension fund assets as at the | pension fund assets as at the |
| balance sheets date. Actuarial | balance sheets date. Actuarial |
| gain or loss is charged or | gain or loss is charged or |
| credited to income in the fiscal | credited to income in the fiscal |
| year next to the year when that | year next to the year when that |
| was incurred. | was incurred. |
| | (Changes in accounting method) |
| | From the current fiscal year, the |
| | Company has adopted the "Partial |
| | Amendments to Accounting Standard |
| | for Retirement Benefits (Part3)" |
| | (ASBJ Statement No.19, July 31, |
| | 2008). In addition, after |
| | considering the criteria of |
| | significance, there is no impact |
| | due to the change because the |
| | same discount rate as before is |
| | used. |
+-----------------------------------+-----------------------------------+
+----------+-----------------------------------+----------+-----------------------------------+----------+
| Previous Fiscal Year | Current Fiscal Year |
| (from April 1, 2008 to March 31, 2009) | (from April 1, 2009 to March 31, 2010) |
+---------------------------------------------------------+----------------------------------------------+
| (6) Allowance for retirement benefits of directors and | (6) Allowance for retirement benefits of |
| corporate auditors | directors and corporate auditors |
+---------------------------------------------------------+----------------------------------------------+
| The Company records an allowance for directors' and | The same as the previous fiscal year. |
| corporate auditors' retirement benefits at the amount | |
| that would be payable if directors and corporate | |
| auditors retired at the end of the fiscal year in | |
| accordance with the Company's internal rules. | |
+---------------------------------------------------------+----------------------------------------------+
| 6. Accounting for hedging activities | 6. Accounting for hedging activities |
+---------------------------------------------------------+----------------------------------------------+
| Interest-rate swap transaction and foreign currency | The same as the previous fiscal year. |
| swap transaction are concluded in order to hedge risks | |
| related to interest-rate fluctuations and foreign | |
| currency exchange fluctuations related to interest | |
| expenses for bonds and borrowings. Regarding | |
| interest-rate swap transaction, the exceptional accrual | |
| method is adopted because the transaction meets | |
| requirements of the said method provided by Japanese | |
| GAAP. Regarding foreign currency swap transaction, the | |
| specific allocation method is adopted because the | |
| transaction meets requirements of the said method | |
| provided by Japanese GAAP. | |
| As for evaluation method for effectiveness of hedging | |
| activities, evaluation is omitted since transactions | |
| meet requirements of the exception rule or the | |
| allocation rule for interest-rate swap. | |
| | |
+---------------------------------------------------------+----------------------------------------------+
| 7. Other significant accounting policies for the | 7. Other significant accounting policies for |
| preparation of financial statements | the preparation of financial statements |
+---------------------------------------------------------+----------------------------------------------+
| (1) Basis of recognition of interest income on direct | (1) Basis of recognition of interest income |
| cash loans | on direct cash loans |
+---------------------------------------------------------+----------------------------------------------+
| Interest income on direct cash loans is recognized on | The same as the previous fiscal year. |
| an accrual basis. | |
| Accrued interest income is recognized at either the | |
| contracted rate applied to individual loan or the | |
| maximum rate permitted by the Interest Rate Restriction | |
| Law in Japan, whichever is lower. | |
+---------------------------------------------------------+----------------------------------------------+
| (2) Accounting treatment of consumption tax | (2) Accounting treatment of consumption tax |
+---------------------------------------------------------+----------------------------------------------+
| Transactions subject to consumption tax are stated at | The same as the previous fiscal year. |
| the amount which includes the related consumption tax. | |
+---------------------------------------------------------+----------------------------------------------+
| | | |
| | Reclassification | |
+----------+----------------------------------------------------------------------------------+----------+
| | Previous Fiscal Year | Current Fiscal Year | |
| | (from April 1, 2008 to March 31, | (from April 1, 2009 to March 31, 2010) | |
| | 2009) | | |
+----------+-----------------------------------+----------------------------------------------+----------+
| | (Non-Consolidated Statements of | (Non-Consolidated Statements of Income) | |
| | Income) | 1. Interest on income taxes refunds, which | |
| | 1. Temporary employment expenses, | were separately | |
| | which were separately | posted until the previous fiscal year, are | |
| | posted until the previous fiscal | included in "other" of other operating | |
| | year, are included in "other" of | expenses because they are no longer largely | |
| | other operating expenses because | influential in the amount. Interest on | |
| | they are no longer largely | income taxes refunds for the current fiscal | |
| | influential in the amount. | year amounted 1 million yen. | |
| | Temporary employment expenses for | | |
| | the current fiscal year amounted | | |
| | 14 million yen. | | |
| | 2. Insurance premium, which were | | |
| | separately posted until the | | |
| | previous fiscal year, are | | |
| | included in "other" of other | | |
| | operating expenses because they | | |
| | are no longer largely influential | | |
| | in the amount. Insurance | | |
| | premium for the current fiscal | | |
| | year amounted 63 million yen. | | |
| | | | |
+----------+-----------------------------------+----------------------------------------------+----------+
| | | | | |
+----------+-----------------------------------+----------+-----------------------------------+----------+
Footnotes to Non-Consolidated Balance Sheets
+--+----------+---------------+-------+------+---------+-----+--+----------+----------------+---+-----+---------+-----+
| Previous Fiscal Year (as of March 31, 2009) | Current Fiscal Year (as of March 31, 2010) |
+------------------------------------------------------------+--------------------------------------------------------+
| *1. The assets pledged as security and the | *1. The assets pledged as security and the |
| corresponding secured liabilities are as follows: | corresponding secured liabilities are as follows: |
+------------------------------------------------------------+--------------------------------------------------------+
| Pledged assets | (millions | Pledged assets | (millions |
| | of yen) | | of yen) |
+--------------------------------------------+---------------+----------------------------------------+---------------+
| | Direct cash loans to customers | 302,003 | | | Direct cash loans to customers | 220,122 | |
+--+-----------------------------------------+---------+-----+--+-------------------------------------+---------+-----+
| | | | | | | | |
+--+-----------------------------------------+---------+-----+--+-------------------------------------+---------+-----+
| Secured liabilities | (millions | Secured liabilities | (millions |
| | of yen) | | of yen) |
+--------------------------------------------+---------------+----------------------------------------+---------------+
| | Current portion of long-term | 35,598 | 17, | | Current portion of | 58,530 | 17, |
| | borrowings | 73,665 | | | long-term borrowings | | |
| | Long-term borrowings | | | | | | |
+ +------------------------------+---------+ + + + + +
| | Total | 109,263 | | | | | |
+-------------+------------------------------+---------+-----+-------------+--------------------------+---------+-----+
| Amounts stated above is the portion related to the | Amounts stated above is the portion related to the |
| financing scheme by way of trusts of direct cash loans | financing scheme by way of trusts of direct cash |
| to customers. | loans to customers. |
| | |
+------------------------------------------------------------+--------------------------------------------------------+
| *2. The total outstanding balance, 861,517 million | *2. The total outstanding balance, 589,477 million |
| yen, of direct cash loans to customers only consists | yen, of direct cash loans to customers only |
| of unsecured loans to individuals. | consists of unsecured loans to individuals. |
+------------------------------------------------------------+--------------------------------------------------------+
| 3. Regarding direct cash loans to customers, once a | 3. Regarding direct cash loans to customers, once |
| credit limit has been established for a customer, the | a credit limit has been established for a |
| customer may access his or her credit line on a | customer, the customer may access his or her |
| revolving basis. The unused portion of each customer's | credit line on a revolving basis. The unused |
| credit line as of the end of fiscal year was 391,516 | portion of each customer's credit line as of the |
| million yen, which included 204,127 million yen of the | end of fiscal year was 380,576 million yen, which |
| unused portion of credit line for customers, who did | included 182,826 million yen of the unused portion |
| not have any loan balance. The credit line of a | of credit line for customers, who did not have any |
| customer is either increased or decreased by the | loan balance. The credit line of a customer is |
| Company at its discretion based on the credit capacity | either increased or decreased by the Company at |
| of the customer. The Company believes that the total | its discretion based on the credit capacity of the |
| unused balance of each customer's credit line does not | customer. The Company believes that the total |
| significantly affect the Company's cash flows in the | unused balance of each customer's credit line does |
| future. | not significantly affect the Company's cash flows |
| | in the future. |
+------------------------------------------------------------+--------------------------------------------------------+
| *4. Short-term loans receivable are on repurchase | *4. Short-term loans receivable are on repurchase |
| agreement. | agreement. |
| Market value of financial assets (investment | Market value of financial assets (investment |
| securities) received as securities related to these | securities) received as securities related to |
| transactions was 49,992 million yen at the end of the | these transactions was 19,989 million yen at the |
| current fiscal year. | end of the current fiscal year. |
+------------------------------------------------------------+--------------------------------------------------------+
| *5. The amount of 26,786 million yen of accumulated | *5. The amount of 25,856 million yen of |
| depreciation for tangible fixed assets was offset. | accumulated depreciation for tangible fixed assets |
| | was offset. |
+------------------------------------------------------------+--------------------------------------------------------+
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
+---------------------------------------------------------------------------------------------------------------------+
| Previous Fiscal Year (as of March 31, 2009) | Current Fiscal Year (as of March 31, 2010) |
+------------------------------------------------------------+--------------------------------------------------------+
| *6. Delinquent loans receivable | *6. Delinquent loans receivable |
+------------------------------------------------------------+--------------------------------------------------------+
| Loans to bankrupt borrowers; | 48 million yen | Loans to bankrupt borrowers; | 60 million yen |
| | | | |
+-------------------------------------+----------------------+----------------------------------+---------------------+
| Loans to bankrupt borrowers are loans under | Loans to bankrupt borrowers are loans under |
| declaration of bankruptcy, reconstruction and similar | declaration of bankruptcy, reconstruction and |
| proceedings and in addition, whose interest no longer | similar proceedings and in addition, whose |
| accrues as income since the principal or interest on | interest no longer accrues as income since the |
| such loans is unlikely to be repaid in view of the | principal or interest on such loans is unlikely to |
| considerable period of delinquencies of the principal | be repaid in view of the considerable period of |
| and interest, or other circumstances. | delinquencies of the principal and interest, or |
| | other circumstances. |
+------------------------------------------------------------+--------------------------------------------------------+
| Delinquent loans; | 63,763 million yen | Delinquent loans; | 74,635 million yen |
+-----------------------------+------------------------------+------------------------------+-------------------------+
| Delinquent loans are loans whose interest no longer | Delinquent loans are loans whose interest no |
| accrues as income since the principal or interest on | longer accrues as income since the principal or |
| such loan is unlikely to be repaid in view of the | interest on such loan is unlikely to be repaid in |
| considerable period of delinquencies of the principal | view of the considerable period of delinquencies |
| and interest, or other circumstances, and do not | of the principal and interest, or other |
| include loans to bankrupt borrowers. | circumstances, and do not include loans to |
| | bankrupt borrowers. |
| | |
+------------------------------------------------------------+--------------------------------------------------------+
| Delinquent loans past due three month or more; | Delinquent loans past due three month or more; |
| 28,408 million yen | 23,997 million yen |
+------------------------------------------------------------+--------------------------------------------------------+
| Delinquent loans past due three months or more are | Delinquent loans past due three months or more are |
| loans which are delinquent for three months or more | loans which are delinquent for three months or |
| from the due date of interest or principal under the | more from the due date of interest or principal |
| term of related loan agreements and do not include | under the term of related loan agreements and do |
| loans to bankrupt borrowers and delinquent loans. | not include loans to bankrupt borrowers and |
| | delinquent loans. |
+------------------------------------------------------------+--------------------------------------------------------+
| Restructured loans;67,508 million yen | Restructured loans; 25,965 million |
| (62,207 million yen) | yen |
| | (23,482 million yen) |
+------------------------------------------------------------+--------------------------------------------------------+
| Restructured loans are loans with concessionary | Restructured loans are loans with concessionary |
| interest rates, as well as loans with negotiated terms | interest rates, as well as loans with negotiated |
| regarding the timing of interest and principal | terms regarding the timing of interest and |
| payment. Restructured loans do not include loans to | principal payment. Restructured loans do not |
| bankrupt borrowers, delinquent loans and delinquent | include loans to bankrupt borrowers, delinquent |
| loans past due three months or more. The loans | loans and delinquent loans past due three months |
| classified as restructured loans include loans | or more. The loans classified as restructured |
| receivable current or less than 31 days past due, the | loans include loans receivable current or less |
| amount of which is indicated in the parenthesis as | than 31 days past due, the amount of which is |
| above. | indicated in the parenthesis as above. |
+------------------------------------------------------------+--------------------------------------------------------+
| 7. Restriction on dividend | 7. Restriction on dividend |
+------------------------------------------------------------+--------------------------------------------------------+
| Certain covenants were applied to 10,000 million yen | Certain covenants were applied to 52,462 million |
| of borrowings and 58,567 million yen of bonds. The | yen in bonds. The Company is obliged to redeem the |
| Company is obliged to redeem the outstanding balance | outstanding balance in a lump-sum to creditors if |
| in a lump-sum to creditors if the Company fails to | the Company fails to comply with the covenants, |
| comply with the covenants, mentioned below: (The | mentioned below: (The strictest conditions are |
| strictest conditions are listed.) | listed.) |
| | |
+------------------------------------------------------------+--------------------------------------------------------+
| (1) in case of the balance of consolidated | (1) - |
| shareholders' equity being less than 100,000 million | |
| yen; | |
+------------------------------------------------------------+--------------------------------------------------------+
| (2) in case of the ratio of consolidated shareholders' | (2) in case of the ratio of consolidated |
| equity against consolidated total assets being less | shareholders' equity against consolidated total |
| than 10%; | assets being less than 10%; |
+------------------------------------------------------------+--------------------------------------------------------+
| | |
| | |
| | |
| | |
| | |
+------------------------------------------------------------+--------------------------------------------------------+
| | |
+------------------------------------------------------------+--------------------------------------------------------+
| | | | | | | | | | | | | | |
+--+----------+---------------+-------+------+---------+-----+--+----------+----------------+---+-----+---------+-----+
+-----------------------------------+-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------+
| Previous Fiscal Year | Current Fiscal Year |
| (from April 1, 2008 to March 31, | (from April 1, 2009 to March 31, |
| 2009) | 2010) |
+-----------------------------------+-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------+
| 1. Basis for classification of | 1. Basis for classification of |
| financial revenues and expenses | financial revenues and expenses |
| on the statements of income | on the statements of income |
+-----------------------------------+-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------+
| (1) Financial revenues stated as | (1) Financial revenues stated as |
| operating revenues; | operating revenues; |
+-----------------------------------+-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------+
| Include all financial revenue | The same as the previous fiscal |
| excluding dividends and interest | year. |
| received from affiliated | |
| companies and excluding dividends | |
| and interest and so forth | |
| received on investment | |
| securities. | |
+-----------------------------------+-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------+
| (2) Financial expenses stated as | (2) Financial expenses stated as |
| operating expenses; | operating expenses; |
+-----------------------------------+-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------+
| Include all financial expenses | The same as the previous fiscal |
| excluding interest payable and so | year. |
| forth which has no relationship | |
| with operating revenues. | |
+-----------------------------------+-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------+
| 2. - | *2. Gain on sales of fixed assets |
+-----------------------------------+-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------+
| | Gain on sales of fixed assets is |
| | due to the sale of a parking lots |
| | etc. and a major item is 808 |
| | million yen of gain from the sale |
| | of land. |
| | |
+-----------------------------------+-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------+
| *3. Impairment loss | *3. Impairment loss |
| | |
+-----------------------------------+-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------+
| Impairment loss of 211 million | The Company conventionally adopted different methods to divide assets into groups for business assets and unutilized assets; regarding business assets, they were divided into groups based on the operation, regarding real estate properties for rent and unutilized assets (including real estate properties for investment), each property was labeled for dividing into groups. However, since a part of fixed assets are expected to be transferred as funding measures, we decided to label each property of the assets subject to the transfer regardless of the usage etc. for the current fiscal year. |
| yen for the telephone rights | Regarding real estate properties for rent and unutilized assets, the book value was written down to recoverable value due to factors such as continuing decline in land price, while the book value of assets subject to transfer was written down due to changes of usage which materially lowered the recoverable value. Thus 6,958 million yen of impairment loss, the amount equals to decreases mentioned, was recorded. |
| related to closing of branch | Major factors of impairment loss are 5,275 million yen for land, 1,007 million yen for building and 461 million yen for equipment |
| offices and accrual expense of 72 | Recoverable value is based on net sale price, which is calculated by deducting expenses for sale from bidding price for sale (for some assets, real estate appraisal value quoted by real estate appraisers is used.). |
| million yen related to the | (million of yen) |
| closing for the next fiscal year | Use Classification Location Amount |
| were posted. | Assets Land Saitama,Tokyo 2,258 |
| In addition, due to the | for and and other |
| consecutive decline in land | commercial buildings |
| prices for a part of the assets | land etc. |
| for rent etc., the carrying | Assets Land Tokyo,Hokkaido 4,220 |
| amount of those assets were | for and and other |
| written down to the value that is | rent buildings |
| estimated to be recoverable, | etc. |
| resulting in an impairment loss | Assets Land Tokyo,Kanagawa 481 |
| amounting 102 million yen | not in and and other |
| | use buildings |
| | etc. |
| | Total 6,958 |
| | |
+-----------------------------------+-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------+
+-----------------------------------+-----------------------------------+
| Previous Fiscal Year | Current Fiscal Year |
| (from April 1, 2008 to March 31, | (from April 1, 2009 to March 31, |
| 2009) | 2010) |
+-----------------------------------+-----------------------------------+
| *4. Loss on closing of branch | *4. Loss on closing of branch |
| offices | offices |
| | |
| Loss on closing of branch offices | Loss on closing of branch offices |
| of 1,605 million yen, for | of 616 million yen, for realized |
| realized closing expenses during | closing expenses during the |
| the current fiscal year, and | current consolidated fiscal year, |
| accrual closing expenses of 291 | and accrual closing expenses of |
| million yen for the next fiscal | 988 million yen for the next |
| year were recorded due to the | consolidated fiscal year were |
| decision made for the cease of | recorded due to the decision made |
| manned and unmanned branch | for the cease of manned and |
| offices and reorganization of | unmanned branch offices and |
| regional branches etc | reorganization of regional |
| | branches etc. |
| *5. Loss on commitment facility | |
| cancellation | |
| | 5. - |
+-----------------------------------+-----------------------------------+
| This is a loss due to | |
| cancellation of a commitment | |
| facility by way of true sale and | |
| due to early repayment. | *6. Loss on transfer of |
| | receivables |
| - | |
| | Loss on transfer of receivables |
| | is a loss due to sale of a part |
| | of the Company's loans |
| - | receivable. |
| | |
| | *7. Provision for loss on |
| | transfer of receivables |
| | |
| | Provision for loss on transfer of |
| | receivables is the amount equals |
| | to expected loss related to |
| | transfer of loans receivable of |
| | the Company reserved and added to |
| | the allowance for loss on |
| | transfer of receivables. |
| | |
+-----------------------------------+-----------------------------------+
Footnotes to Non-Consolidated Statement of Changes in Net Assets
Previous Fiscal Year (from April 1, 2008 to March 31, 2009)
Type and the number of treasury stocks
+----------+-------------+-------------+-------------+-------------+
| | The number | The number | The number | The number |
| | at the end | increased | decreased | at the end |
| | of previous | during | during | of current |
| | fiscal year | current | current | fiscal year |
| | (thousand | fiscal year | fiscal year | (thousand |
| | shares) | (thousand | (thousand | shares) |
| | | shares) | shares) | |
+----------+-------------+-------------+-------------+-------------+
| Common | 9,647 | 2,729 | 3,000 | 9,375 |
| stocks | | | | |
| (Note) | | | | |
+----------+-------------+-------------+-------------+-------------+
| Total | 9,647 | 2,729 | 3,000 | 9,375 |
+----------+-------------+-------------+-------------+-------------+
Note: 1. The factors of the number increased by 2,729 thousand shares are
acquisition of treasury stock based on the resolution of the board of directors'
meeting of 2,729 thousand shares and purchase of under unit stocks of 0 thousand
shares.
2. Decrease by 3,000 thousand shares of common stock of issued stocks and of
treasury stocks is due to cancellation of treasury stocks based on the
resolution of the board of directors' meeting.
Current Fiscal Year (from April 1, 2009 to March 31, 2010)
Type and the number of treasury stocks
+----------+-------------+-------------+-------------+-------------+
| | The number | The number | The number | The number |
| | at the end | increased | decreased | at the end |
| | of previous | during | during | of current |
| | fiscal year | current | current | fiscal year |
| | (thousand | fiscal year | fiscal year | (thousand |
| | shares) | (thousand | (thousand | shares) |
| | | shares) | shares) | |
+----------+-------------+-------------+-------------+-------------+
| Common | 9,375 | 0 | - | 9,375 |
| stocks | | | | |
| (Note) | | | | |
+----------+-------------+-------------+-------------+-------------+
| Total | 9,375 | 0 | - | 9,375 |
+----------+-------------+-------------+-------------+-------------+
Note: The increase of treasury stock of 0 thousand shares reflects the purchase
of shares of less than one share unit.
Footnotes to Lease Transactions
None
Footnotes to Marketable Securities
Previous Fiscal Year (as of March 31, 2009)
There is no stock of subsidiaries or affiliate which has market value.
Current Fiscal Year (as of March 31, 2010)
Market value of the stocks of subsidiaries or affiliate (recorded amounts on the
balance sheet: stocks of subsidiaries 38,233 million yen, stocks of affiliate
1,204 million yen) is not recorded because there is no market value and
therefore it is recognized extremely difficult to estimate the market value.
Footnotes to the Deferred Tax Accounting
+-----------------------------------+---------------------------------------------------------------------------------------------+
|Previous Fiscal Year (as of March | Current Fiscal Year (as of March |
| 31, 2009) | 31, 2010) |
+-----------------------------------+---------------------------------------------------------------------------------------------+
| 1. The tax effects of temporary | 1. The tax effects of temporary |
| differences which give rise to | differences which give rise to |
| significant portions of the | significant portions of the |
| deferred income tax assets and | deferred income tax assets and |
| liabilities are as follows: | liabilities are as follows: |
+-----------------------------------+---------------------------------------------------------------------------------------------+
| | |
| | |
| (millions | (millions |
| of yen) | of yen) |
| Current deferred | Current deferred |
| income tax assets; | income tax assets; |
| Direct cash loans 7,467 | Direct cash loans 9,493 |
| to customers | to customers |
| Accrued interest | Accrued interest |
| income on direct 1,996 | income on direct 1,312 |
| cash loans to | cash loans to |
| customers | customers |
| Allowance for 12,966 | Allowance for 654 |
| credit losses | credit losses |
| Allowance for 258 | Allowance for 152 |
| bonuses | bonuses |
| Other 424 | Allowance for loss |
| Subtotal 23,110 | on transfer of 4,567 |
| Valuation allowance -23,110 | receivables |
| Total - | Other 674 |
| (millions | Subtotal 16,852 |
| of yen) | Valuation allowance -16,852 |
| Fixed deferred | Total - |
| income tax assets; | (millions |
| Tangible fixed 7,992 | of yen) |
| assets | Fixed deferred |
| Investment 235 | income tax assets; |
| securities | Tangible fixed 7,383 |
| Valuation 624 | assets |
| difference on | Investment 138 |
| available-for-sale | securities |
| securities | Valuation 181 |
| Investments in 14,323 | difference on |
| affiliates | available-for-sale |
| Allowance for | securities |
| losses for refund 163,360 | Investments in 14,323 |
| of interest | affiliates |
| received from | Allowance for |
| customers | losses for refund 110,546 |
| Allowance for | of interest |
| retirement benefits 1,460 | received from |
| of employees | customers |
| Accumulated deficit 109,589 | Allowance for |
| Other 12,579 | retirement benefits 1,569 |
| Subtotal 310,162 | of employees |
| Valuation allowance -310,162 | Accumulated deficit 165,774 |
| Total - | Other 12,918 |
| | Subtotal 312,832 |
| | Valuation allowance -312,832 |
| | Total - |
| | |
+-----------------------------------+---------------------------------------------------------------------------------------------+
| 2. A reconciliation between the | 2. A reconciliation between the statutory tax rate and the effective tax rate is as follow; |
| statutory tax rate and the | |
| effective tax rate is as follow; | Statutory tax rate 40.5% |
| Items have been omitted as they | (Reconciling items) |
| are not required for companies | Changes in valuation allowance -41.1 |
| resulting in a loss before income | Per capita inhabitants taxes 1.7 |
| taxes. | Other 0.7 |
| | Effective tax rate |
| | 1.8 |
| | |
+-----------------------------------+---------------------------------------------------------------------------------------------+
Footnotes to business combinations, etc.
None
+--------------------------+--------+-------------+----------------------+
| Previous Fiscal Year | Current Fiscal Year |
| (from April 1, 2008 to March 31, | (from April 1, 2009 to March 31, |
| 2009) | 2010) |
+-----------------------------------+------------------------------------+
| Net assets per 1,071.14 | Net assets per 1,100.54 |
| share; yen | share; yen |
| Net income per 1,885.90 | Net income per 56.29 |
| share; yen | share; yen |
| | Net income per 50.47 |
| | share-diluted; yen |
| | |
| | |
+-----------------------------------+------------------------------------+
| Note: Bases for calculating net income or net loss per share and net |
| income per share-diluted are as follows: |
| |
| |
| (millions of yen) |
+------------------------------------------------------------------------+
| |Previous Fiscal Year | Current Fiscal Year |
| | (from April 1, 2008 | (from April 1, 2009 |
| | to March 31, 2009) | to March 31, 2010) |
+--------------------------+----------------------+----------------------+
| Net income or net loss | | |
| per share | | |
+--------------------------+----------------------+----------------------+
| Net income for the | -256,933 | 7,595 |
| fiscal year | | |
+--------------------------+----------------------+----------------------+
| Net income not available | - | - |
| to common shareholders | | |
+--------------------------+----------------------+----------------------+
| Net income for common | -256,933 | 7,595 |
| stock | | |
+--------------------------+----------------------+----------------------+
| Average number of shares | 136,239 | 134,920 |
| outstanding during the | | |
| current fiscal year | | |
| (thousand shares) | | |
+--------------------------+----------------------+----------------------+
| | | |
+--------------------------+----------------------+----------------------+
| Net income per | | |
| share-diluted | | |
+--------------------------+----------------------+----------------------+
| Net income adjustments | - | 557 |
+--------------------------+----------------------+----------------------+
| (Borrowing interest | (-) | (557) |
| expenses included in the | | |
| above (after deduction | | |
| of tax)) | | |
+--------------------------+----------------------+----------------------+
| Increase of common | - | 26,599 |
| stocks (thousand shares) | | |
+--------------------------+----------------------+----------------------+
| Outline of potential | Subscription rights | Subscription rights |
| stocks, which are not | to shares as stock | to shares as stock |
| dilutive and therefore | options resolved by | options resolved by |
| were excluded from the | the board of | the board of |
| calculation of net | directors meeting | directors meeting |
| income per share-diluted | held on November 8, | held on November 8, |
| | 2007 | 2007 |
| | 470,300 shares | 408,900 shares |
+--------------------------+----------------------+----------------------+
| | JPY 70 billion | Share subscription |
| | Euro-yen convertible | rights as stock |
| | bond-type bonds with | options based on the |
| | subscription rights | resolution of the |
| | to shares due 2018 | board of directors' |
| | 29,761,904 shares | meeting held on July |
| | Share subscription | 18, 2008 |
| | rights as stock | |
| | options based on the | 24,900 shares |
| | resolution of the | |
| | board of directors' | |
| | meeting held on July | |
| | 18, 2008. | |
| | | |
| | 24,900 shares | |
+--------------------------+----------------------+----------------------+
| | | | |
+--------------------------+--------+-------------+----------------------+
Footnotes to Statistics per Share
Subsequent Events
None
7. Other
Change of directors on board, corporate auditors and executive officers
Change of directors on board, corporate auditors and executive officers will
be announced when determined.
8. Actual Operating Results (Non-Consolidated)
(1) Break-down of Operating Revenues
+--------------------+-------------+-------------+-------------+-----------+-------------+-----------+---------+
| Source of revenues | Previous Fiscal | Current Fiscal | Change |
| | Year | Year | |
| | (from April 1, | (from April | |
| | 2008 to March | 1,2009 to March | |
| | 31, 2009) | 31, 2010) | |
+ +---------------------------+-------------------------+---------------------+
| | Amount |Composition | Amount |Composition | Amount | Change |
| | (millions | Ratio (%) |(millions | |(millions | Ratio |
| | of yen) | | of yen) | Ratio (%) | of yen) | (%) |
+----------------------------------+-------------+-------------+-----------+-------------+-----------+---------+
| Interest | Unsecured | 178,337 | 96.2 | 113,581 | 95.1 | -64,756 | -36.3 |
| income on | loans | | | | | | |
| direct cash | | | | | | | |
| loans | | | | | | | |
+--------------------+-------------+-------------+-------------+-----------+-------------+-----------+---------+
| Credit card | Credit card | 69 | 0.0 | 57 | 0.0 | -12 | -17.0 |
| revenues | | | | | | | |
+--------------------+-------------+-------------+-------------+-----------+-------------+-----------+---------+
| Other | Interest on | 427 | 0.2 | 51 | 0.0 | -376 | -88.0 |
| financial | bank | | | | | | |
| revenues | deposits | | | | | | |
+ +-------------+-------------+-------------+-----------+-------------+-----------+---------+
| | Interest on | 329 | 0.2 | 36 | 0.0 | -293 | -89.1 |
| | loans other | | | | | | |
| | than direct | | | | | | |
| | cash loans | | | | | | |
+ +-------------+-------------+-------------+-----------+-------------+-----------+---------+
| | Other (Note | 1,822 | 1.0 | 697 | 0.7 | -1,125 | -61.7 |
| | 1) | | | | | | |
+ +-------------+-------------+-------------+-----------+-------------+-----------+---------+
| | Subtotal | 2,578 | 1.4 | 784 | 0.7 | -1,794 | -69.6 |
+--------------------+-------------+-------------+-------------+-----------+-------------+-----------+---------+
| Other | Collection | 3,235 | 1.8 | 3,750 | 3.1 | 515 | 15.9 |
| operating revenues | from bad | | | | | | |
| | debts | | | | | | |
| | previously | | | | | | |
| | written-off | | | | | | |
+ +-------------+-------------+-------------+-----------+-------------+-----------+---------+
| | Real estate | 993 | 0.5 | 893 | 0.8 | -100 | -10.0 |
| | rent income | | | | | | |
+ +-------------+-------------+-------------+-----------+-------------+-----------+---------+
| | Other (Note | 232 | 0.1 | 338 | 0.3 | 106 | 45.7 |
| | 2) | | | | | | |
+ +-------------+-------------+-------------+-----------+-------------+-----------+---------+
| | Subtotal | 4,459 | 2.4 | 4,981 | 4.2 | 522 | 11.7 |
+--------------------+-------------+-------------+-------------+-----------+-------------+-----------+---------+
| Total | 185,443 | 100.0 | 119,403 | 100.0 | -66,040 | -35.6 |
+--------------------+-------------+-------------+-------------+-----------+-------------+-----------+---------+
Notes: 1. "Other" in other financial revenues mainly consist of interest
received from interest swap transaction.
2. "Other" in other operating revenues mainly consist of fee received.
(2)Other Highlights Data
+--------+-----------------------+--------------+--------------+----------+-----------------------+
| Items | Previous | Current | |
| | Fiscal Year | Fiscal Year | |
| |(as of March |(as of March | |
| | 31, 2009) | 31, 2010) | |
+ + + +----------------------------------+
| | | | Change | Change Ratio (%) |
+--------------------------------+--------------+--------------+----------+-----------------------+
| Direct cash loans to customers | 861,517 | 589,477 | -272,040 | -31.6 |
| (millions of yen) | | | | |
+--------------------------------+--------------+--------------+----------+-----------------------+
| | Unsecured loans | 861,517 | 589,477 | -272,040 | -31.6 |
+--------+-----------------------+--------------+--------------+----------+-----------------------+
| | Secured loans | - | - | - | - |
+--------+-----------------------+--------------+--------------+----------+-----------------------+
| Installment receivables | 465 | 312 | -153 | -33.0 |
| (millions of yen) | | | | |
+--------------------------------+--------------+--------------+----------+-----------------------+
| Number of loan customer | 1,480,683 | 1,078,517 | -402,166 | -27.2 |
| accounts | | | | |
+--------------------------------+--------------+--------------+----------+-----------------------+
| | Unsecured loans | 1,480,683 | 1,078,517 | -402,166 | -27.2 |
+--------+-----------------------+--------------+--------------+----------+-----------------------+
| | Secured loans | - | - | - | - |
+--------+-----------------------+--------------+--------------+----------+-----------------------+
| Number of credit card | 275,684 | 251,436 | -24,248 | -8.8 |
| membership | | | | |
+--------------------------------+--------------+--------------+----------+-----------------------+
| Number of branch offices | 1,051 | 786 | -265 | -25.2 |
+--------------------------------+--------------+--------------+----------+-----------------------+
| | Manned | 210 | 140 | -70 | -33.3 |
+--------+-----------------------+--------------+--------------+----------+-----------------------+
| | Unmanned | 840 | 645 | -195 | -23.2 |
+--------+-----------------------+--------------+--------------+----------+-----------------------+
| | Internet branch | 1 | 1 | - | - |
| | office | | | | |
+--------+-----------------------+--------------+--------------+----------+-----------------------+
| Number of unmanned loan | 1,051 | 786 | -265 | -25.2 |
| contract machines | | | | |
+--------------------------------+--------------+--------------+----------+-----------------------+
| Number of cash dispensers and | 54,904 | 57,940 | 3,036 | 5.5 |
| ATMs | | | | |
+--------------------------------+--------------+--------------+----------+-----------------------+
| | Owned | 1,161 | 873 | -288 | -24.8 |
+--------+-----------------------+--------------+--------------+----------+-----------------------+
| | Tie-up | 53,743 | 57,067 | 3,324 | 6.2 |
+--------+-----------------------+--------------+--------------+----------+-----------------------+
| Number of employees | 2,415 | 2,103 | -312 | -12.9 |
+--------------------------------+--------------+--------------+----------+-----------------------+
| Write-offs | 144,404 | 57,186 | -87,218 | -60.4 |
| (millions of yen) | | | | |
+--------------------------------+--------------+--------------+----------+-----------------------+
| Interest repaid (portion of | 67,531 | 43,875 | -23,656 | -35.0 |
| principal impaired) | | | | |
| (millions of yen) | | | | |
+--------------------------------+--------------+--------------+----------+-----------------------+
| Allowance for credit losses | 96,994 | 60,658 | -36,336 | -37.5 |
| (millions of yen) | | | | |
+--------+-----------------------+--------------+--------------+----------+-----------------------+
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR SFSSADFSSEFI
1 Year Takefuji Corp Chart |
1 Month Takefuji Corp Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions
