Jaccs - Ar 2015 PDF

Annual Report 2015
For the Fiscal Year Ended March 31, 2015
PROFILE
JACCS Co., Ltd., started out as a provider of monthly installment credit services for use at department stores in Hakodate, Hokkaido, in
1954. Since then, under a founding philosophy that values trust and reliability, JACCS has continued to expand its business nationwide in
Japan and has expanded its business into growth markets in Asia. With a total volume of new contracts exceeding 3,061 billion, JACCS
is one of the leading names in Japans consumer credit sector.
JACCS main businesses comprise the credit business, the credit card business, and the nancing business, which includes credit
guarantees and other operations. JACCS issues standard credit cards under the Visa, MasterCard, and JCB brands, and has a
membership base of approximately 6.7 million cardholders, including those with cards from afliate partners.
JACCS became a member of Mitsubishi UFJ Financial Group, Inc. (MUFG), in 2008 through a third-party allocation of new shares.
In overseas business, the JACCS Group continues to expand, focusing on the ASEAN region. JACCS commenced overseas business
with the provision of motorcycle loan services in Vietnam in 2010, and followed this with the launch of motorcycle loan services in
Indonesia in 2012. In April 2015, JACCS International Vietnam Finance Co., Ltd., became the rst Japanese-afliated credit card issuer
in Vietnam. In new business, JACCS is aggressively developing and rolling out services in such areas as prepaid cards and deferredpayment settlement systems.
In April 2015, JACCS launched a new three-year medium-term business plan, ACT- . The new plan continues JACCS
commitment to the medium- to long-term vision articulated in ACT11 of becoming an innovative consumer nance company with its
roots in Japan, and builds on the measures implemented to date.
Contents
Growth Trajectory
EIGHT-YEAR FINANCIAL SUMMARY
BUSINESS PLANS OF THE PRESENT AND THE PAST
OPERATIONAL HIGHLIGHTS
TO OUR STAKEHOLDERS
NEW THREE-YEAR MEDIUM-TERM BUSINESS PLAN ACT-
REVIEW OF OPERATIONS
14
CORPORATE GOVERNANCE
18
195460
June 1954
Depart Sinyohanbai Co., Ltd., established in
Hakodate, Hokkaido, with paid-in capital of 3.3
million. Began monthly installment credit service
for use at department stores based on the
issuance of installment-shopping coupons to
members who have joined through their workplace.
FOUNDERS / BOARD OF DIRECTORS AND AUDIT & SUPERVISORY BOARD MEMBERS
20
EXECUTIVE OFFICERS
21
CSR ACTIVITIES
22
July 1959
FINANCIAL INFORMATION
23
CORPORATE DIRECTORY
50
INVESTOR INFORMATION
51
To coincide with the 5th anniversary of

establishment, the Companys name was changed
to Kitanihon Sinyohanbai Co., Ltd.
Dec. 1959
Began a credit guarantee service for financial
institutions, the first service of its type in Japan
FORWARD-LOOKING STATEMENTS
Mar. 1969
The financial data and other business-related information in this publication has been prepared to inform JACCS
stakeholders about the business. Any forecasts regarding future performance contained in these materials are based
on estimates and the best judgments of the Company, without guarantee or security. Readers are advised not to make
investment decisions based solely on the information contained in these materials. All business and financial data relate
to the consolidated operations of the Company, unless otherwise noted.
In collaboration with large manufacturers, began

providing a full-fledged shopping credit service
JACCS Founding Philosophy

The essence of JACCS founding philosophy is expressed in these Chinese characters,
which may be translated as, Trust is the basis for all. Since JACCS establishment, we
have remained faithful to our founding philosophya strong belief that trust and reliability
form the cornerstone of all our activities, taking precedence in our relationships with
consumers and business partners.
New Management Principle

JACCS contributes to the realization of a future
inspired by dreams and an afuent society.
197080
19902000
2010
July 1972
Jan. 1991
June 2010
Established the Tokyo Office (currently the Tokyo

Branch) as the Companys first presence in the
Kanto region
Began issuing JACCS JCB Card
Established overseas subsidiary JACCS

International Vietnam Finance Co., Ltd.
Apr. 1973
Nov. 1994
Head Office transferred to the Companys new
main building, Ebisu Neonato, in Shibuya-ku, Tokyo
Shares listed on the Sapporo Securities Exchange
Dec. 2012
Acquired a 40% equity stake in Indonesian
company PT Sasana Artha Finance
May 2001
Aug. 1975
Head Office functions transferred to Tokyo
Apr. 1976
Began operating a state-of-the-art core

computer system called JANET, the first such
online system in the industry to run 24-hours-aday, 365-days-a-year
Company name was changed to JACCS Co., Ltd.
Mar. 2008
Sept. 1978
Listed on the First Section of the Tokyo Stock
Exchange
JACCS became an equity-method affiliate of The

Bank of Tokyo-Mitsubishi UFJ, Ltd., through a
third-party allocation of new shares
Apr. 1989
Apr. 2008
Began issuing internationally accepted credit

cards, JACCS Visa Card and JACCS MasterCard
Took over the shopping credit business of

Mitsubishi UFJ NICOS Co., Ltd.
Apr. 2014
Renewal of the corporate logo
May 2014
Newly merged PT Mitra Pinasthika Mustika
Finance (MPMF) commenced operations
June 2014
Celebrated the 60th anniversary of JACCS
establishment
JACCS CO., LTD.
Annual Report 2015
EIGHT-YEAR FINANCIAL SUMMARY

2008
2009
2010
2011
2,448,288
714,783
325,794
562,889
251,888
592,933
139,912
(8,020)
(8,400)
(9,758)
58,022
(5,511)
22,731
2,412,646
723,126
306,343
527,433
211,317
644,425
142,039
5,271
6,278
2,587
94,774
(4,956)
(124,126)
2,316,012
704,064
241,957
515,934
178,181
675,874
127,101
8,845
10,433
3,569
122,877
1,708
(116,864)
2,328,294
738,947
227,300
551,465
118,673
691,907
116,241
3,137
5,479
4,398
104,111
(4,533)
(33,883)
2,788,607
99,538
3,024,588
97,849
2,827,806
103,273
2,786,288
105,261
(65.90)
568.30
14.78
558.74
4.00
20.39
589.74
5.00
25.12
601.13
5.00
(0.3)%
(9.5)
3.6
0.2%
2.6
3.2
0.4%
3.6
3.7
0.2%
4.2
3.8
9,911
175,395,808
2,934
9,714
175,395,808
2,977
9,920
175,395,808
2,714
9,601
175,395,808
2,839
Years ended March 31
Summary of operations for the year:

Total volume of new contracts
Volume of new contracts: Credit card
Volume of new contracts: Installment sales nance
Volume of new contracts: Credit guarantee
Volume of new contracts: Financing
Volume of new contracts: Other operations
Total operating revenue
Operating income (loss)
Ordinary income (loss)
Net income (loss)
Net cash provided by (used in) operating activities
Net cash provided by (used in) investing activities
Net cash provided by (used in) nancing activities
At year-end:
Total assets
Total net assets
Per share data:
Net income (loss)
Net assets
Cash dividends
Key ratios (%):
ROA
ROE
Equity ratio
Supplementary data:
Number of JACCS cardholders (Thousands)
Number of shares outstanding at year-end
Number of employees
BUSINESS PLANS OF THE PRESENT AND THE PAST

FY2008FY2010
FY2011
10th Medium-Term Business Plan

VIC10
JACCS takes over the shopping credit business
of Mitsubishi UFJ NICOS Co., Ltd.
Reinforcement of business
foundations
Measures to minimize the impacts of the
earthquake
Reform of cost structures / enhancement of

business protability
FY2012FY2014
ACT11
Accelerate growth by turning around and expanding operating revenue (top line)
Further strengthen our management structure to
ensure adaptability to environmental change
Continuously enhance our compliance system
Economic and Business Sector Environment

Rapid decline in consumption following the onset of the global nancial crisis
Prolonged appreciation of the yen
Economic slowdown in China and other emerging countries
Deterioration in employment and incomes
Global economic slowdown triggered by the
Underpinned by continued monetary easing, a weakening yen
Tightening of regulation under related laws

June 2010: Full implementation of the Money Lender Business Law
December 2010: Full implementation of the Installment Sales Law
European debt crisis
driven by robust economic conditions in the United States, and

rising stock prices, corporate earnings perform strongly
Following the April 2014 increase in the consumption tax rate,
personal consumption shows weakness
JACCS CO., LTD.
Annual Report 2015
OPERATIONAL
HIGHLIGHTS
Millions of Yen
2012
2013
2014
2015
2,387,501
749,720
230,352
603,873
86,418
717,136
107,384
10,972
13,271
6,822
36,236
(4,181)
(61,147)
2,480,470
786,669
211,539
636,770
83,022
762,469
102,950
9,413
11,750
7,642
15,157
(8,934)
(47,933)
2,784,532
899,957
293,029
687,669
79,010
824,866
104,134
12,236
12,238
6,504
(89,429)
(8,355)
72,821
3,061,297
1,026,247
307,767
725,019
79,235
923,027
108,259
11,975
11,951
7,107
(86,683)
(13,942)
115,197
2,725,816
111,348
2,718,518
117,486
2,896,405
122,712
3,158,044
132,846
2 014
April
Began offering deferred-payment

settlement services targeting the
mail-order and online shopping market.
This is the rst service of its type in
Japans shopping credit and credit card
industry. The name of the new service is
ATODENE.
April
To commemorate the 60th anniversary of

JACCS founding, the Company donated a
solar power station to the city of Hakodate in
Hokkaidowhere JACCS rst established its
business. JACCS also commenced its own
solar power generation business.
June
Began issuing Tametoku10 as an

original prepaid card for partner company
CarBell Co., Ltd. This prepaid card is
designed specically for the purchase
of an automobile, and is the rst case
of such a product being launched in the
auto sales industry in Japan.
June
Launched a television
advertising campaign
featuring professional
tennis player Kei
Nishikori, with whom
JACCS is proud to
sponsor.
September
Announced that Group company JACCS

International Vietnam Finance Co., Ltd.,
would enter the credit card business,
becoming the rst Japanese-afliated
credit card issuer in Vietnam. Commenced
the issuing of credit cards in April 2015.
December
Entered a business alliance agreement

with General Motors Japan Limited on
auto loan services for new vehicle
purchases.
December
Entered a business alliance agreement

with Jaguar Land Rover Japan Limited on
auto loan services for new vehicle
purchases.
Yen
38.97
636.17
10.00
43.72
678.38
11.00
37.71
715.38
14.00
41.42
772.67
14.00
0.5%
6.3
4.1
0.4%
6.7
4.3
0.4%
5.4
4.2
0.4%
5.6
4.2
8,419
175,395,808
2,977
7,281
175,395,808
3,096
6,828
175,395,808
3,355
6,726
175,395,808
3,434
FY2015FY2018
ACT-
Expansion of JACCS earnings base through Group synergies
The pursuit of innovativeness through strategic utilization
of the Groups resources

The practice of advanced corporate social responsibility (CSR)
JACCS CO., LTD.
Annual Report 2015
TO OUR STAKEHOLDERS
Gaining Momentum,
Creating Value
It is with sadness that we announce that two of JACCS founders and

former representative directors have recently passed away. Mr. Kaname
Yamane passed away on April 6, 2015, and Mr. Tatsuya Watanabe passed
away on July 1, 2015. We wish to take this opportunity to reiterate our
sincere gratitude for the achievements and leadership of these two men,
and offer our deepest condolences to their families, friends, and colleagues.
Operating Performance:
Operating Revenue in Steady Upward Trend
In fiscal 2014, ended March 31, 2015, the JACCS Group achieved growth in
operating revenue, continuing on from the increase recorded in fiscal 2013.
In the credit business, the volume of new contracts and operating
revenue increased despite impact from a slump in consumer spending in
certain sectors following the April 2014 increase in Japans consumption
tax rate. Such categories as kimono, jewelry, and auto loans performed
well. In the credit card business, although some weakness remained in the
volume of cash advances, strengthened co-branded card issuance helped
bolster the number of new cardholders. The volume of new contracts
for shopping was robust, driven by the ongoing execution of a variety of
Total Operating Revenue

Target
120
(Billions of Yen)
Actual
110.0 108.2
103.7 102.9 105.3 104.1
90
60
30
0
2013
2014
Ordinary Income
Target
2015
(Billions of Yen)
Actual
15
12.2
11.7
12
9.0
12.5 11.9
9.5
6
3
0
2013
2014
Yasuyoshi Itagaki
President, CEO, COO and Representative Director
JACCS CO., LTD.
Annual Report 2015
2015
promotional campaigns. The balance of revolving payments also grew

steadily, leading to an increase in operating revenue. In the financing
companys operating performance fell short of initial forecasts.

As a result of the factors summarized above, on a consolidated
business, the volume of new contracts for personal loan guarantees for
basis, the total volume of new contracts increased 9.9% compared with
financial institutionson both loans on deed and card-based loanswas
the previous fiscal year, to 3,061,297 million, surpassing the 3 trillion
robust, and the balance of guarantees surpassed 330,000 million.
mark. Over the past two fiscal years, the consolidated total volume of new
In new business, the ATODENE deferred-payment settlement
contracts has risen 600,000 million, attesting to a rapid pace of growth.
service provided by consolidated subsidiary JACCS Payment Solutions
Total operating revenue rose 4.0% compared with the previous fiscal year,
Co., Ltd., entered partnerships with major payment agencies and other
to 108,259 million, and ordinary income decreased 2.3%, to 11,951
companies as part of efforts to expand the number of alliance partners
million. Net income increased 9.3%, to 7,107 million.
and new contracts handled by the service.

In overseas business, local consolidated subsidiary JACCS
ACT11: Final-Year Progress
International Vietnam Finance Co., Ltd. (JIVF), increased the volume of
With regard to the numerical targets specified under JACCS previous three-
new contracts for motorcycle loans and unsecured loans, driven by an
year medium-term business plan ACT11, completed in March 2015, by
expansion of its sales territory. On a single-fiscal-year basis, the company
and large we achieved our profit target. While we were unable to reach our
realized operating profitability. Meanwhile, Indonesian equity-method
operating revenue target, we did accomplish a turnaround and expansion of
affiliate PT Mitra Pinasthika Mustika Finance (MPMF) has expanded its
this key performance measure. Regarding our core policies under the plan,
motorcycle and auto sales finance business operations to cover all of
we made sound progress and sowed seeds for the future while posting solid
Indonesia. However, owing to such factors as deterioration in market
growth. We also gained a clear view of the next set of tasks that must be
conditions and a rise in expenses related to doubtful accounts, the
addressed.
Review of the Previous Medium-Term Business Plan ACT11

Steady progress in implementing core policies Clarified key tasks for the next stage
Core policies
1. Accelerating growth by turning around and

expanding operating revenue (top line)
2. Further strengthening our management

3. Continuously enhancing our compliance system
structure to ensure adaptability to environmental
change
Turnaround in operating revenue and

accelerated growth
Steady growth across all businesses
and divisions
Accelerated development of new business
and overseas business
Accelerated shift to greater use of IT and
Web-based platforms
Maintained stable, high-quality receivables

portfolio
Increase in balance of products that generate
stable earnings
Promotion in building a structure for business
continuity
Level of progress
Actual results
Appropriate operational execution

Strengthened internal control and internal
auditing systems
Built structure aimed at severing all connections
to antisocial organizations
ACT11 achieved steady growth and sowed the seeds for future growth
Key tasks for the next stage
Pursuing effective ROI of information systems investment
Speeding up the earning contributions of new business
Overhaul of cost structures
Accelerating profit contributions of affiliate companies
JACCS CO., LTD.
Annual Report 2015
TO OUR STAKEHOLDERS
New Three-Year Medium-Term Business Plan ACT-
by investment in IT systems and other technology and the maximization
JACCS new medium-term business plan ACT- is an ambitious one,
of the returns thereof. The third core policy is the practice of advanced
aiming to achieve record-high ordinary income and then improve on that
corporate social responsibility (CSR). We will focus on such measures
record within the plans three-year period. The vision promoted under
as strengthening of the Groups compliance systems, putting into
this plan is a continuation of that advocated under the previous plan.
practice programs designed to make a social contribution, bolstering
Specifically, JACCS is striving to become an innovative consumer finance
risk management systems, and reinforcing corporate governance.
company with its roots in Japan. The realization of this vision will be a
To further clarify our aggressive investment stance in relation to IT,
milestone on the road to achieving our long-term vision of establishing
we intend to carry out investments in mission-critical systems, bolster
JACCS position as a leading brand among Asian consumer finance
Web-related platforms, and enhance usability. Such investment will focus
companies in 10 years time.
on driving competitive advantage, reinforcing profitability, and improving
Within the plan, we have set three core policies. The first is
operational efficiency.
expansion of JACCS earnings base through Group synergies. In addition
Based on the pursuit of these policies, in fiscal 2017, ending March
to maximizing JACCS strengths as a member of the MUFG Group, we
31, 2018the final year of ACT- we will aim to generate operating
are committed to broadening the JACCS Groups earnings base through
revenue of 136,400 million and ordinary income of 20,000 million,
its own internal synergies among the parent company and six Group
while achieving return on equity (ROE) of 9% or higher.

A special feature section on pages 813 of this report further
companies. The second core policy is the pursuit of innovativeness
explains the details of ACT- .
through strategic utilization of the Groups resources. We aim to create

a growth cycle of ongoing investment in key fields, particularly driven

Long-Term Vision
Establish JACCS position as a leading brand among Asian consumer finance companies

Vision
An innovative consumer finance company with its roots in Japan

Core Policies
Expansion of JACCS earnings base

through Group synergies
The pursuit of innovativeness through

strategic utilization of the Groups resources
The practice of advanced CSR
Maximize synergies with the MUFG Group

Overhaul existing businesses
Major leap in progress of overseas business
Creation and nurturing of new business
Strengthen marketing capabilities

Structural reform through investment in IT
Pursue low-cost operations
Human resource development and strategic
promotions and assignment of roles
Further reinforcement of compliance systems

Undertake practices that contribute to society
Reinforce risk management systems
Strengthen corporate governance structure
JACCS CO., LTD.
Annual Report 2015
Outlook for Fiscal 2015, Ending March 31, 2016
through such steps as development of auto loans and other new products
At this point I would like to outline the market environment and measures
and the launch of credit card services. In Indonesia, we will strive to
planned by the Group during fiscal 2015, the first year of ACT- .
expand our existing business and grow revenue through merger-driven
In the credit business, overall consumption is expected to plateau in
synergies.
the long term, driven by population shrinkage and demographic aging as
Underpinned by these measures, as management targets for fiscal
well as lifestyle diversification. In such a market environment, the key to
2015 we aim to achieveon a consolidated basisoperating revenue
growth will be the ability to identify, select, and concentrate on fields that
of 114,800 million, ordinary income of 13,500 million, and net income
have superior growth potential and present strong opportunities for the
amounting to 8,600 million.
Group to generate growth. In shopping credits, the housing renovation and

e-commerce markets are expanding. In fiscal 2015, we plan to expand
Delivering Shareholder Value
overall shopping credits through further increases in the level of new
JACCS sees stable shareholder return as a key management issue.
contracts related to housing products and services and expansion of Web-
Simultaneously, we recognize that shareholder return must be in line with
based products. The auto loan market, similar to shopping credits, is likely
business performance. Hence, our basic policy regarding profit distribution
to be affected by the trend toward lower vehicle ownership rates among
strives to reinforce our financial base and keep adequate internal reserves
households. However, the imported-vehicle market and auto leasing are
while implementing dividends based on a comprehensive evaluation of
two areas that are still growing. In the used-vehicle market, the JACCS
such factors as net income, financial position, and payout ratio.
Group has yet to capture sufficient market share. To bolster our level of
new contracts in such segments, we are further strengthening our WeBBy
The cash dividend applicable to fiscal 2014 totaled 14.00 per

share, including an interim dividend of 7.00 per share.
Auto loan application service as well as implementing programs that

target auto dealers.
Aiming for a Major Leap in Growth
In the credit card business, key drivers include government-led
From fiscal 2015 we have launched our new medium-term business plan,
initiatives to promote the use of cashless payment systems, an expanding
ACT- . The plan maintains the medium- to long-term vision of becoming
range of potential uses for credit cards, diversification of payment
an innovative consumer finance company with its roots in Japan, which
methods, and advances in technology. The Group is striving to broaden
was initiated under the previous plan. We intend to further develop and
its lineup of co-branded cards in the Web-related market as well as co-
refine the policies implemented to date, as we make a fresh start in
branded cards with strong ties to local areas. We are also strengthening
pursuit of a major leap in growth for the Group and aim to realize our
campaigns focusing on the acquisition of new cardholders, working to
vision spanning six years.
promote card usage through sophisticated promotions, and implementing

programs to expand sales from Gonna international-brand prepaid cards.
In the financing business, within personal loan guarantees for
As we strive toward these goals, we look forward to the continued

support and understanding of our shareholders, investors, customers,
partner companies, and local communities.
financial institutions, we plan to increase the balance of loan guarantees,

principally by targeting The Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU), and
August 2015
regional banks. In housing loan guarantees, we will strive to maintain our

leading market share. In bill collection services, we are aiming to capture
fresh business opportunities by leveraging new systems and services.
In new business, we will work to enhance the profitability of the
ATODENE deferred-payment settlement service and sow seeds for future
Yasuyoshi Itagaki
growth centering on the e-commerce market.
President, CEO, COO and Representative Director
In overseas business, in Vietnam, in addition to expanding the

motorcycle sales finance business, we aim to realize significant growth
JACCS CO., LTD.
Annual Report 2015
SPECIAL FEATURE
President Itagaki Talks about
New Three-Year Medium-Term

Business Plan ACT-
Overview of Three-Year Medium-Term
Business Plan ACT-
When we launched the previous medium-term
business plan, ACT11, which ran from April 2012
through March 2015, we articulated a vision of
JACCS becoming an innovative consumer finance
company with its roots in Japan. The time horizon
we set to achieve this vision was the fiscal year
ending March 31, 2018, and this vision is being
carried on by our new medium-term business plan,
ACT- , which runs from the fiscal year ending
March 31, 2016, through the fiscal year ending
March 31, 2018. ACT- is positioned as an
extremely important plan on the road to realizing
a major leap in growth and the vision we have
articulated to date.
JACCS CO., LTD.
Annual Report 2015
The ACT- Vision of JACCS
long-term vision of establishing JACCS position as a leading brand
By realizing the vision of JACCS as an innovative consumer finance
among Asian consumer finance companies within a span of 10 years.
company with its roots in Japan, articulated within the Groups new
What we mean specifically by leading brand is a Group that has attained
medium-term business plan, we aim to create a group with the following
a reputation of the highest level in the consumer finance field in Japan and
characteristics.
the rest of Asia.
A leading group with a strong presence underpinned by a diverse

earnings base and sustainable growth
Numerical Targets
The Group has built a business platform in the ASEAN region, and is
As we work to realize our vision and the characteristics outlined above, the
aiming for further overseas expansion
quantitative targets set under ACT- are as follows. In addition to top-line
To create new markets, the Group develops and provides products and
(operating revenue) growth, we are focusing heavily on profitability. In the
services that anticipate market needs ahead of its rivals
fiscal years ending March 31, 2017 and 2018, we are targeting record-level
As a member of the Mitsubishi UFJ Financial Group, Inc. (MUFG), JACCS
profits in two consecutive years. As a strategy for building a diversified
provides its customers and society with high-quality financial services
earnings base, the fiscal year ending March 31, 2016, is positioned at
the launch year for full-fledged consolidated management. By pursing
Beyond ACT- , JACCS is committed to developing its business from Japan
increased profit contributions from Group affiliates, we are targeting return
into Asia, and to becoming a global enterprise. This is communicated in our
on equity (ROE) of more than 9% in the fiscal year ending March 31, 2018.
Growth in Consolidated Ordinary Income

(Billions of Yen)
20.0
Further improve record-high
ordinary income
ACT-
15.5
ACT11
11.9
13.5
Starting year of consolidated
management
2015
2016 Target
2017 Target
2018 Target
2015
2016 Target
2017 Target
2018 Target
108.2
114.8
125.1
136.4
11.9
13.5
15.5
20.0
11.5
12.8
13.8
16.9
Domestic Subsidiaries Ordinary Income
0.2
0.1
0.8
1.5
Overseas Subsidiaries Ordinary Income
0.1
0.6
0.9
1.6
5.6%
6.5%7%
7%8%
9%
Consolidated Operating Revenue

Consolidated Ordinary Income
Non-Consolidated Ordinary Income
ROE
Achieve record-high ordinary

income
JACCS CO., LTD.
Annual Report 2015
SPECIAL FEATURE
NEW MEDIUM-TERM BUSINESS PLAN
Three Core Policies
Core Policy 1:
To realize the goals of the ACT- vision, we have set three core policies
Expansion of JACCS Earnings Base Through Group

Synergies
under the plan.

1
This policy aims to strengthen profitability by leveraging synergies between
The pursuit of innovativeness through strategic utilization of the Groups
the JACCS Group and MUFG.

JACCS intends to maximize its strengths as a member of MUFG.
resources
3
The practice of advanced corporate social responsibility (CSR)
Utilizing the comprehensive strengths of MUFG as its backbone, the JACCS

Group aims to accelerate the development of its overseas business and new
Under expansion of JACCS earnings base through Group synergies,
business. From the perspective of placing a heavy focus on consolidated
the key point will be a strengthening of consolidated management. Under
management, we intend to reinforce the profitability of Group companies
the pursuit of innovativeness through strategic utilization of the Groups
and enhance consolidated performance. Specifically, this policy focuses on
resources, the main focus will be the utilization of information technology
domestic consolidated subsidiaries JACCS Lease Co., Ltd., JACCS Total
(IT) to generate growth and reform the Groups cost structures. Under the
Service Co., Ltd., JACCS Loan-Collection Service Co., Ltd., and JACCS
practice of advanced CSR, the key task will be to raise the satisfaction
Payment Solutions Co., Ltd., as well as Vietnam consolidated subsidiary
levels of a broad range of stakeholders.
JACCS International Vietnam Finance Co., Ltd. (JIVF), and Indonesia equitymethod affiliate PT Mitra Pinasthika Mustika Finance (MPMF).
Core Policy 1
The Bank of Tokyo-Mitsubishi

UFJ, Ltd.
Group companies
Realize maximum advantages
from MUFG strengths
JACCS Loan-Collection Service
Co., Ltd.
JACCS Total Service

Co., Ltd.
JACCS Payment
Solutions Co., Ltd.
JACCS Lease
Co., Ltd.
JACCS International Vietnam

Finance Co., Ltd.
PT Mitra Pinasthika
Mustika Finance
Concentrate the JACCS Groups strengths
10
JACCS CO., LTD.
Annual Report 2015
Maximize synergies
with the MUFG Group
Overhaul existing businesses
Major leap in progress of

overseas business
Creation and nurturing of

new business
Core Policy 2:
IT Investment Strategy
The Pursuit of Innovativeness Through Strategic

Utilization of the Groups Resources
We will promote IT investment with the goals of establishing competitive
JACCS is pursuing IT investment that will drive growth, including the
Within investment in mission-critical systems, we aim to begin operation of
development of products that utilize IT and the development of a next-
the new loan-screening engine in June 2016. The new engine is expected to
generation loan-screening engine. Furthermore, to maximize the
further increase the automation ratio within the screening process. We have
effectiveness of IT investment, we will implement an overhaul of our cost
also begun construction of a backup data center. As globalization advances,
structures and work to increase productivity. Improvements in productivity
this will become an essential part of our infrastructure from the perspectives
will facilitate a strategic reallocation of management resources to such
of reliability and business continuity.
areas as overseas business, new business, the e-commerce market, and
advantage, strengthening profitability, and enhancing operational efficiency.
In Web-related fields, we are expanding product application functions
marketing. These strategic areas will then become sources of new earnings,
that boast a high level of usability. Examples include the introduction of
thereby driving a growth cycle led by an expansion of operating revenue.
tablet computers to our business partners, The Bank of Tokyo-Mitsubishi
As part of these measures to raise productivity, we are placing particular
UFJ, Ltd.s Net DE Loan product, and our bill collection outsourcing service
emphasis on human resource development, and are undertaking a strategic
system.
approach to staff and manager appointments and promotions.

Core Policy 3:
The Practice of Advanced CSR

Core Policy 2
Strengthening compliance remains one of managements highest priority
The pursuit of innovativeness through strategic utilization

of the Groups resources
tasks under ACT- . We are also working to reinforce corporate governance

through strict adherence to Japans Corporate Governance Code.
The JACCS Group interacts sincerely with a wide range of
IT investment that contributes

to growth
stakeholders, and will continue striving to respond to the expectations place

Reform cost structure
Execute aggressive investments
Maximize ROI of IT investment
Web-based products /
New product development /
Next-generation credit screening
engine
Overhaul of profit structure
Growth in the top line

(operating revenue)
Pursue further innovativeness
while realizing growth
Maximum use of resources
Reinvestment in key fields

Accelerate a tightening of focus
on select businesses
upon it by stakeholders.
Core Policy 3
The practice of advanced CSR
Further reinforcement of
compliance systems
Undertake practices that

contribute to society
Do not merely focus on legal

compliance, but practice behavior
that is based on high ethics
Implement contributions to society

focused on symbiosis with local
communities
Reinforce risk management

systems
Strengthen corporate
governance structure
Marketing / e-commerce market /

Overseas business / New business
Strengthen marketing capabilities
Pursue low-cost operations
Structural reform through

investment in IT
Human resource development and strategic
promotions and assignment of roles
Strengthen risk management

through Group-wide risk
assessments and execution of
measures to manage risks
Ensure appropriate information

disclosure and transparency
Conformity with Corporate
Governance Code
Enhance effectiveness of
business continuity system
JACCS CO., LTD.
Annual Report 2015
11
SPECIAL FEATURE
NEW MEDIUM-TERM BUSINESS PLAN
Targeting this segment, the ATODENE deferred-payment settlement
NEW BUSINESS
service is receiving much attention by offering both convenience and peace

of mind to online shoppers. For this service, JACCS has forged partnerships
with major payment agencies (PAYGENT Co., Ltd., and ZEUS Co., Ltd.) and a
New Business Initiatives
major e-commerce company (ASKUL Corporation, operator of large-scale
Under its previous medium-term business plan ACT11, the JACCS Group
online household goods store LOHACO). By entering into further alliances
pursued the creation and development of new business as a means of sowing
with major market participants, JACCS will work to expand the volume of
seeds for the future. Among the major accomplishments of these efforts are
new contracts, thereby leading to a greater contribution to earnings.
Gonna, a multi-currency prepaid card; Tametoku Prepaid, a first of its kind

in Japan that includes bill collection and prepaid card functions; and
Expanded Sales of Gonna Prepaid Card
ATODENElaunched in April 2014which is a deferred-payment
As the Japanese government promotes a policy aimed at increasing the use
settlement service targeting the mail-order and online shopping market.
of cashless payment systems, needs related to prepaid cards are rising in

the payments market. JACCS is pursuing a major alliance that will promote
ACT-: New Business Strategy
a combined co-branded prepaid card and membership card.
Under ACT- , we are promoting the sowing of further seeds for the future,
centered on the enhancement of profitability of new business and the
e-commerce market.
Increasing the Earnings Contribution of DeferredPayment Settlement Services

One of our main strategic initiatives for gaining greater penetration in
the e-commerce market is our deferred-payment settlement service
ATODENE. The e-commerce market continues to grow, and while the
online shopping market is expanding there is a not insignificant segment
of the consumer market that has shown resistance to using credit cards
for online transactions.
ATODENE Deferred-Payment Settlement System
Operating Revenue Target of New Business

(Billions of Yen)
1. Order
Customer
Affiliated store
3. Shipment of goods
5. Payment
6.9
2. Credit screening
4. Settlement of
payment for
goods
Alliances
4.0
Pursue further alliances with major e-commerce

platforms and payment agencies
Fiscal year ending March 31, 2018

Target volume of new contracts: 100.8 billion
Operating revenue target: 5.0 billion
Sowing further seeds for growth centering on the e-commerce market
12
JACCS CO., LTD.
Annual Report 2015
1.2
0
2016 Target
2017 Target
2018 Target
Indonesia Business Strategy
OVERSEAS BUSINESS
In Indonesia, PT Mitra Pinasthika Mustika

Finance (MPMF)in which JACCS holds
a 40% equity stakehas motorcycle
ACT-: Overseas Business Strategy
and auto sales finance business, and is
Under ACT- , in overseas business JACCS will build its earnings base by
working to expand these businesses. In addition, JACCS is providing
strengthening existing businesses in Asia and entering new markets.
know-how accumulated in its Japanese businesses to MPMF, and is

supporting the company in the development of low-cost structures. Based
Vietnam Business Strategy
on such efforts, MPMF aims to realize a highly profitable business platform.
In Vietnam, our motorcycle sales
JACCS is also supporting the company to strengthen its receivables
finance business, which began
management and internal control systems.
in 2010, is planned to cover the

entire country during 2015. From
The Next Step
2016, the Company will focus
Based on collaboration with MUFG, JACCS is pursuing research of markets
on enhancing the business
in the ASEAN regionwhere the middle-income group is expected to grow.
profitability and efficiency, as
We are also promoting aggressive business development in the region.
it works to further increase
During the period of ACT- , JACCS is aiming to launch operations in three
earnings. In credit card
other ASEAN countries.
operations, which were launched

in April 2015, the Company is
working to achieve stable operations at an early stage, and plans to
commence issuing co-branded cards in 2016. Through the promotion of
a Web strategy, the Company aims to increase brand penetration. The
Company is also striving to roll out new products, including the expansion
of personal loans and the auto sales finance business.
Business Development Scenario (Vietnam)
Business Development Scenario (Indonesia)
(Years ended and ending December 31)

2014
Commencement
of entry into the
motorcycle sales
finance in the
northern half of the
country
Commencement of
credit card business
2015
2016
2017
Completion of
nationwide rollout
of loan counters
Target number of
affiliate dealerships:
613
Enhancement of profitability and efficiency of loan

counters
Commencement of
credit card business
Credit card issuance
forecast: 20,000
cards
Issuance of co-branded cards and promotion of

Web-based business strategy
Credit card issuance forecast for 2016: 30,000 cards
Credit card issuance forecast for 2017: 40,000 cards
(Years ended and ending December 31)

2014
Birth of the New MPMF
2015
2016
2017
Business expansion driven by merger

synergies
Provision of JACCS know-how
Building a low-cost structure
Realization of highly
profitable
earnings structure
Millions of Yen
Total Volume of New Contracts

Operating Revenue
EBIT
2014
3,517
947
100
2015 Target
5,879
1,548
305
2016 Target
7,132
2,149
601
2017 Target
8,558
2,680
1,002
Millions of Yen

Operating Revenue
Net income
2014
36,839
10,279
717
2015 Target
47,718
13,207
794
2016 Target
54,873
16,391
1,201
JACCS CO., LTD.
2017 Target
63,108
18,878
1,671
Annual Report 2015
13
Credit Business
Growth in such Categories as Jewelry, Kimono,

BtoB, Web Channels, and Auto Loans
Overview
JACCS shopping credit supports consumers at various life stages, including in such areas as home renovation and
other housing-related fields, and with the purchase of motorcycles, jewelry, kimono, and household appliances, as well
as educational, bridal, and healthcare services. JACCS also offers Web-based products and other products that meet
Operating Revenue
in Shopping Credits
(Non-Consolidated)
changing market needs. In the auto loan field, through partnerships with auto dealers, JACCS facilitates purchases in
22.6
a broad array of vehicle categories, from domestic and foreign new vehicles through to used vehicles.
Billions of Yen
Operating Performance (Non-Consolidated)

In shopping credits, the volume of new contracts increased, mainly driven by expansion in major business categories
and BtoB products. This was despite contraction in certain categories following the April 2014 increase in Japans
consumption tax rate. Operating revenue grew, reflecting an increase in the volume of new contracts for installment sales
2013
finance and a reversal of deferred installment income.
Operating Revenue
in Auto Loans
In auto loans, the volume of new contracts grew, reflecting strong contract volume through import- and domestic-
2014
2015
brand dealerships. Operating revenue rose, driven by a higher volume of new contracts and a reversal of deferred
(Non-Consolidated)
installment income.
17.2
Strategy under ACT-
Billions of Yen
In shopping credits, JACCS is working to increase the volume of housing-related loan contracts for such purposes as
solar power generation system installation and home renovation. We are also focusing on such fields as lease guarantees
and BtoB payment services to grow the volume of new contracts. By expanding the lineup of WeBBy services and
developing the platform to handle a wide variety of user devices, JACCS is aiming to facilitate growth in the volume of
2013
2014
2015
new contracts across the entire shopping credit business.

In auto loans, JACCS is implementing strategies to increase market share in imported-vehicle auto loans. These
include the provision of new products and services and the development of captive-finance operations. In the used-
Volume of New Contracts of

Web-Based Products
vehicle dealership market, JACCS is focusing on expanding business through major specialized used-vehicle dealers and
strengthening its WeBBy Auto loan services. JACCS also aims to grow its auto lease business by promoting Car Life
(Non-Consolidated)
(Billions of Yen)
50
Valuea vehicle leasing system catering to individuals. Through this comprehensive range of initiatives, JACCS will
work to grow the volume of new contracts.
Key Initiatives
Expansion of Web-channel sales
2014
2015
2016
Target
As a result of strengthening WeBBy and expanding the platform to cover a wide array of user devices, the volume of
new contracts for Web-based products grew at a robust paceup 34.0% in shopping credits and up 86.2% in auto
loans. The ratio of credit applications received through the Web is rising, and we are forecasting that in the final year of
ACT- more than half of all such applications will be made via the Web.
Volume of New Contracts of

WeBBy Auto
(Non-Consolidated)
(Billions of Yen)
100
Strategic focus on the imported-vehicle market

As part of JACCS focus on the imported-vehicle market in its auto loan business, in December 2014 the Company
entered into business alliance agreements with General Motors Japan Limited and
Jaguar Land Rover Japan Limited regarding the provision of a range of loan
products. JACCS intends to develop this into a captive-finance business based on a
comprehensive lineup of products and the provision of optimal loan plans to meet
the needs of customers at various life stages.
14
JACCS CO., LTD.
Annual Report 2015
2014
2015
2016
Target
Credit Card Business
Expanding the Customer Base and Growing Revenue

Overview
In addition to standard credit cards with attractive add-on services, JACCS also issues cards in partnership with a wide variety of
organizations and companies. Through collaborative partnerships with member storesa key strength that leverages JACCS
Operating Revenue in Credit

Card Business for Shopping
status as an independent credit card issuer not affiliated with any particular retail groupwe focus on enhancing the value-
(Non-Consolidated)
added of co-branded cards. We are also promoting increased cardholder use of revolving payment services.
29.7
Billions of Yen

The number of new members in the credit card business increased, underpinned by an expansion of new co-branding
partners and growth in members acquired via the credit business. The total number of members decreased slightly due
to ongoing measures to reduce inactive cardholders. The number of active cardholders bottomed out and rebounded as
2013
the active cardholder ratio steadily rose.
2014
2015
In card shopping, expansion in the number of new members and various promotional campaigns contributed to
Operating Revenue in Credit Card

Business for Cash Advances
increases in the number of active cardholders and the average usage amount per cardholder. Consequently, the volume
of new contracts increased. Operating revenue rose, driven by increases in the volume of new contracts and the balance
of revolving payments.
(Non-Consolidated)
The level of decrease in the volume of new contracts from cash advances was smaller compared with the previous
12.5
fiscal year. This reflected growth in customers who have selected cash advances as an optional service and the execution
Billions of Yen
of various promotional campaigns. Operating revenue from cash advances decreased owing to declines in the volume of
new contracts and the balance of cash advances.
2013
Strategy under ACTIn the credit card business, JACCS is focusing on the e-commerce market and expanding its co-branded card lineup with
partner companies that have strong ties to local communities. We are also working to expand the credit card customer
2014
2015
Number and Ratio of

Active Cardholders
base by such means as new-member acquisition via the credit business and offering a greater range of services through
Number of Active Cardholders
Ratio of Active Cardholders
the Web. We are striving to grow our revenue base through expansion of the total revolving payment balance (combined
342
Tens of Thousands
total of revolving payments for shopping and cash advances), the use of more sophisticated promotional programs, and
50.9 %
strengthening of our customer center functions. We are also undertaking aggressive efforts to increase sales of the Gonna
international-brand prepaid card, and expand in such business fields as contactless payment services.
2013
Key Initiative
2014
2015
Expansion of co-branded card lineup

Below is a sample of the new co-branded cards JACCS launched during the fiscal year under review.
Web and e-commerce market
Partner companies with strong ties to local communities
Nexon JACCS Card
Kyorindo JCB / VISA
This is a co-branded credit card launched by JACCS and
In collaboration with Shizuoka-based
online game company Nexon Co., Ltd. Loyalty points earned
super-drugstore operator Kyorindo Co., Ltd.,
by card members through shopping may be exchanged for
this credit card includes two loyalty
electronic points that can be used within the content provided by Nexon.
programsKyorindo Point Card functions and credit-card loyalty points.
STARFLYER PREMIUM CARD
SunPlaza JACCS Card
This is a high-value-added credit card offering such features
This dual credit card and loyalty point card is issued in
as a mileage program, loyalty point program, and insurance
partnership with Osaka-based supermarket operator Super
functions.
Market SunPlaza Co., Ltd.

JACCS CO., LTD.
Annual Report 2015
15
Financing Business
Pursuing Alliances with Financial Institutions and

Steadily Expanding Bill Collection Services
Overview
The financing business comprises credit guarantees for personal loans extended by financial institutions, credit
guarantees for housing loans, and bill collection services. Housing loan guarantee services specialize in mortgage
guarantees on studio-type apartments purchased for investment purposes. JACCS conducts this business specifically
Revenue from Guarantees

for Personal Bank Loans
(Non-Consolidated)
in Tokyo, Osaka, and Fukuoka, where apartments have sound rental income-earning potential.
3.6
Billions of Yen

In personal loan guarantees for financial institutions, the balance of loan guarantees grew strongly on both loans on deed
and card-based loans, and operating revenue increased. In housing loan guarantees, the balance of loan guarantees
remained robust and operating revenue grew. In bill collection services, operating revenue rose, driven by growth in the
volume of new contracts and the number of invoices handled.
Strategy under ACTIn personal loan guarantees for financial institutions, we are working to expand the balance of loan guarantees by
providing products and services that flexibly meet the needs of target institutionsprimarily BTMU and regional banks.
JACCS aims to expand provision of guarantees underpinned by the introduction and promotion of a Web-based loan
screening system. In housing loan guarantees, JACCS is working to secure the top market share. We are also carrying
2013
2014
2015
Revenue from
Guarantees for Housing
Loans
(Non-Consolidated)
out initiatives to build up revenue derived from peripheral operations and create new earnings sources.
15.5
Billions of Yen
In bill collection services, JACCS is working to expand outsourcing operations that leverage the Groups new IT
system and new services, and is focusing on cultivating new customers. We are also aggressively expanding into the
regions of western Japan.
Key Initiatives
2013
2014
2015
Services targeting regional banks

In the period under review, we aggressively focused on expanding business with regional banks. The following are
examples of guarantee operations stemming from collaborative initiatives undertaken in this area.
Revenue from
Bill Collection Services
New educational card loan products launched by Bank of Fukuoka, Kumamoto Bank, and Shinwa Bank
2.6
New Tsukuba Road Bike Loan and Tsukuba Dental Loan products launched by Tsukuba Bank
Billions of Yen
Unsecured New Personal Auto Loan product launched by Yamagata Bank

Unsecured Toho Solar Power Generation System Loan product launched by Toho Bank
Full rollout of CYBER SystemJACCS new bill collection system

We made a full rollout of JACCS new bill collection system CYBER System, which enhances the functionality and
convenience of the previous system. This enabled us to offer an improved level of service to outsourcing customers.
16
JACCS CO., LTD.
Annual Report 2015
2013
2014
2015
Overseas Business
Vietnam Consolidated Subsidiary Achieved Operating

Profitability on a Single-Fiscal-Year Basis
Overview
began by offering motorcycle sales finance services and has steadily expanded operations since then. This includes the provision
Operating Revenue
in Vietnam
of unsecured loans, and becoming the first Japanese credit card issuer in Vietnam. In Indonesia, JACCS entered the motorcycle
(Years ended December 31)
JACCS is currently developing businesses in Vietnam and Indonesia. In Vietnam, which JACCS entered in 2010, the Company
sales finance business in 2012, and in the fiscal year ended March 31, 2014, successfully entered the auto sales finance
947
business through a reorganization of local finance companies. We are providing the know-how we have accumulated in Japan
Millions of Yen
as we aim to expand our business in these regions.

In Vietnam, consolidated subsidiary JACCS International Vietnam Finance Co., Ltd. (JIVF), increased its volume of new
contracts for motorcycle sales finance and unsecured loans, driven by an expansion of its operational area. This enabled
2012
2013
2014
the company to achieve operating profitability on a single-fiscal-year basis.

In Indonesia, equity-method affiliate PT Mitra Pinasthika Mustika Finance (MPMF) expanded its motorcycle and auto
sales finance operations to cover all regions of Indonesia. However, owing to deterioration in market conditions and a rise
in expenses related to doubtful accounts, the companys operating performance fell short of initial forecasts.
Strategy under ACT-
Balance of Operating
Receivables in Vietnam
2,866
JACCS intends to build up the earnings base of its overseas business by reinforcing its existing businesses in Asia
Millions of Yen
and entering new markets. In Vietnam, we are working to expand the motorcycle sales finance business, develop new
products in such areas as auto sales finance, and strengthen our unsecured loan services. In addition, we plan to focus
on increasing brand penetration through the credit card business launched in the fiscal year under review. In Indonesia,
we are striving to grow the motorcycle and auto sales finance business, and increase earnings through post-merger
synergies.
Key Initiative
Launch of credit card operations as the first Japanese issuer in Vietnam
Vietnam consolidated subsidiary JIVF commenced credit card operations catering to the local consumer market. This
2012
2013
2014
Number of Member Stores

in Vietnam
made JACCS the first Japanese company to issue credit cards in Vietnam. The company began issuing standard credit
429
cards and loan cards by targeting existing high-quality customers acquired in the motorcycle sales finance and
unsecured loan businesses. In the future, JACCS aims to begin issuing co-branded cards.
2012
JACCS CO., LTD.
2013
2014
Annual Report 2015
17
CORPORATE GOVERNANCE
Fundamental Corporate Governance Philosophy
The Company works to maintain the trust and respond to the expectations of a
broad cross-section of stakeholders, including shareholders, business partners,
employees, consumers, and local communities. Furthermore, the Company
pursues management that places signicant importance on corporate social
responsibility (CSR), and believes that enhancing corporate value and
contributing to society as well as the realization of a society based on trust
are key management issues. To achieve these goals, the Company works to
increase the soundness of its business, improve transparency, and strengthen
its management control systems and audit functions, while undertaking
corporate activities in accordance with principles of social justice.
Corporate Governance Structure
Under its corporate governance structure, the Company appoints a Board of

Directors and an Audit & Supervisory Board, and has introduced a system of
executive ofcers.
Board of Directors
As of June 29, 2015, the Board of Directors comprises nine members
(including two outside directors). The Board of Directors determines the
Companys basic management policies, and makes decisions regarding
important operational matters and other matters delegated by resolution of
the General Meeting of Shareholders. The Board of Directors also makes
decisions on matters stipulated by law and the Companys Articles of
Incorporation, and receives reports regarding the status of signicant
operational matters. Based on this structure, the Board of Directors
oversees the operational execution of the Companys management. The
term of appointment for directors is one year.
Audit & Supervisory Board Members and the Audit & Supervisory Board
As of June 29, 2015, the Company had four Audit & Supervisory Board
Members (including two outside Audit & Supervisory Board Members). As
independent ofcers functioning under a mandate from the General Meeting

of Shareholders, the Audit & Supervisory Board Members audit the directors
execution of duties. The Audit & Supervisory Board is a body that holds
discussions and makes decisions regarding the audits undertaken by the
Audit & Supervisory Board Members for the purpose of formulating opinions.
Each Audit & Supervisory Board Member utilizes the Audit & Supervisory
Board as a means of ensuring effectiveness. As a body to support the Audit
& Supervisory Board Members execution of duties, the Company has
established the Audit & Supervisory Board Members Secretariat and has
appointed dedicated staff to this body.
Management Committee
As an advisory body to the COO, the Management Committee comprises
mainly executive ofcers responsible for supervising each function of the
Companys business organization. In principle, the Management Committee
convenes three times per month and broadly considers and debates matters
delegated by the Board of Directors, important operational matters and various
issues, as part of a system designed to facilitate expeditious execution.
Audit Ofce
The Audit Ofce functions as an internal auditing unit, which reports directly
to the President, CEO, COO and Representative Director and maintains
independence from the rest of the Companys organization. As of June 29,
2015, the Audit Ofce comprised 18 staff, including the Audit Ofce General
Manager. The Audit Ofce considers and evaluates overall business-related
risk management control and the effectiveness of governance processes at
each of the Groups operational sites, and conducts internal auditing
operations based on the Companys internal control system policies.
Accounting Auditor
With regard to accounting auditing, the Company has entered into an audit
contract with KPMG AZSA LLC.
Corporate Governance Structure

General Meeting of Shareholders
Election / Dismissal
Operational Audit
Audit & Supervisory Board
Board of Directors
Cooperation
Management
Committee
President, CEO, COO and

Representative Director
Accounting Audit
Accounting Auditor
Internal Control Committee

Cooperation
Compliance Committee
Personal Information Protection Committee
Individual Departments
Directors, Executive Ofcers, Others
18
JACCS CO., LTD.
Annual Report 2015
and Others
Audit Ofce
Committees
Internal Control Committee
The Internal Control Committee is tasked with establishing systems to
ensure that the Groups operations are conducted appropriately, and has
the objective of promoting integrated and efcient internal control and
risk management.
Compliance Committee
The Compliance Committee has the objective of promoting business
operations within the Group that achieve an extremely rigorous level
of compliance.
Personal Information Protection Committee
The Company acquires personal information and provides credit as part of
its business operations. The Personal Information Protection Committee has
the objectives of continuously improving and strengthening the Groups
personal information protection systems, and is the Companys highest body
responsible for matters relating to the handling of personal information.
Internal Control and Compliance Structure
The reason the Company adopted this corporate governance structure is to

enhance the effectiveness of the Board of Directors decision-making and
oversight and the Audit & Supervisory Board Members (Audit & Supervisory
Board) management audit functions. Furthermore, this structure clearly
denes the respective roles and responsibilities of directors and executive
ofcers who have a deep knowledge of the Companys operations, and
day-to-day management. Hence, the Company believes that this structure is
optimal for facilitating autonomous, responsible, and speedy management.
Measures to Revitalize the General Meeting of Shareholders and Promote

the Exercise of Voting Rights
The Company works to dispatch notices of General Meeting of
Shareholders as early as possible. Notice of the Ordinary General Meeting
of Shareholders held on June 26, 2015 was dispatched on June 4, 2015.
To promote the exercise of voting rights, the Company participates in an
electronic voting platform.
Outside Directors and Outside Audit & Supervisory

Board Members
The Company has appointed two outside directors and two outside Audit &
Supervisory Board Members.
Although the Company has not established any specic standards
relating to independence in the appointment of outside directors and outside
Audit & Supervisory Board Members, appointment decisions are based on
the principles that persons appointed must not have any benecial interests
in the Company, be able to express opinions and advice from an independent
and objective perspective so as to sustain the soundness and transparency
of the Companys management, and must not have the risk of conicts of
interest arising with ordinary shareholders of the Company.
In addition to building an expeditious and efcient structure for operational

execution, the Company believes that strengthening the compliance system
of the entire Group and establishing a highly independent internal audit
system is extremely important. Hence, the Company has established
specialist organizational units responsible for each of these functions.
On March 20, 2015, the Board of Directors passed a resolution regarding
fundamental policy relating to the internal control system. This policy
was applied on April 1, 2015.
Information Disclosure System
The Company believes that it is extremely important to respond to the trust

placed in it by all stakeholders, including shareholders, investors, and local
communities, by fullling its responsibilities and increasing its enterprise
value. Hence, one of the Companys fundamental policies is to strive to
ensure timely, fair, and just information disclosure.
IR Activities
The Company holds briengs for analysts and institutional investors twice
yearly approximately one week after the results announcement. In addition
to the results announcement at the Tokyo Stock Exchange (TSE), the
Company posts its securities ling (Yuka Shoken Hokokusho ), brieng
materials, shareholders newsletters, English annual report, and other
materials on its website.
http://www.jaccs.co.jp/corporate/ir/
A dedicated IR manager is appointed within the Corporate Planning and
Communication Department.
Note: With regard to Corporate Governance Code, the Company will make a separate disclosure
by the appointed date. This disclosure will include information on policies, measures, and
the status of measures being implemented.
Compensation of Officers
Ofcer category
Directors (excluding
outside directors)
Audit & Supervisory
Board Members
(excluding outside
Audit & Supervisory
Board Members)
Outside ofcers
Total compensation by type (millions of yen) Number of

Total comdirectors
pensation
or Audit &
Basic
Stock
Retirement
(millions of compensaSuperviBonuses
options
allowance
yen)
sory Board
tion
Members
264
222
42
__
__
37
37
__
__
__
21
21
__
__
__
Note: The above table includes one director who retired as of the Ordinary General Meeting of
Shareholders held on June 26, 2014.
JACCS CO., LTD.
Annual Report 2015
19
FOUNDERS / BOARD OF DIRECTORS AND AUDIT &

SUPERVISORY BOARD MEMBERS
(As of June 29, 2015)
Founder and Honorary Chairman
President, CEO, COO

and Representative Director
Kaname Yamane
Directors and Senior Executive Officer

G
Shigeki Ogata
Yasuyoshi Itagaki
Accounting and Finance
Deputy President and
Haruo Kamioka*
Representative Director
Kuniaki Hara*
Tsutomu Sugiyama
* Outside Directors
Founder and Counselor

Tatsuya Watanabe
Senior Adviser
Naoe Sugimoto
Director and Senior Managing
Audit & Supervisory Board Members
JACCS founder and honorary chairman
Executive Officer
Akihiro Urabe (Full-time)
Mr. Kaname Yamane passed away on
Hidechika Kobayashi
Takayuki Hiroi (Full-time)
April 6, 2015, and JACCS founder and
Credit and Credit Card, Financing Business and

Business Strategy
Saburosuke Fujisaki*
counselor Mr. Tatsuya Watanabe

passed away on July 1, 2015.
Directors and Managing

Executive Officers
D
Noboru Kawakami
General Affairs, Personnel and Compliance
Minekazu Sugano
Information System
Kojun Sato
Corporate Planning
20
JACCS CO., LTD.
Annual Report 2015
Satoru Fujimura*
* Outside Audit & Supervisory Board Members
EXECUTIVE OFFICERS
(As of June 29, 2015)
Senior Executive Officers
Executive Officers
Yoshinao Osawa
Masayuki Nemoto
Takeshi Yoshikawa
Audit
Chugoku-Shikoku Area
Auto Loans, Business Strategy
Hitoshi Chino
Ryo Murakami
Keigo Abo
Credit Supervision and Operation
Credit Business Promotion, Business Strategy
Credit Card Business Promotion, Business Strategy
Hideo Yoshino
Shingo Yuzue
Terukazu Shimokawa
PT Mitra Pinasthika Mustika Finance (Indonesia)
Housing Loan Guarantee, Business Strategy
Credit Supervision and Operation
Kenichi Oshima
Masatoshi Kishi
Hokkaido Area
Kita-Kanto Area
Toru Yamazaki
Kazuo Yamamoto
Shutoken Area
Corporate Planning
Takahiro Nagoshi
Noboru Taniguchi
Sales, Business Strategy
Credit Administration
Akira Kuzukami
Toshiyuki Hijikata
Kinki Area
Compliance
Toshio Sotoguchi
Hiroki Yoshida
Chubu Area
Tohoku Area
Masahiro Hasukawa
Atsushi Hazawa
Credit Administration
Kyushu Area
Masami Odagiri
General Affairs
JACCS CO., LTD.
Annual Report 2015
21
CSR ACTIVITIES
Through all of our interactions with society, we aim to honor the trust placed in us by our stakeholders, and strive
to enhance the level of satisfaction we provide. This statement conveys JACCS core CSR philosophy.
Protecting Customers Personal Data
suggestions and requests, and the feedback received is recorded in
As an enterprise with systems in place for the adequate protection of
an internal database. In cases where remedial action or guidance is
personal information, JACCS strives to appropriately protect customers
necessary, the Company strives to provide an expeditious response
personal information, credit card numbers, and other data. In scal
or carry out an investigation of the issues raised. In scal 2014, there
2014, 137 JACCS employees passed the qualication test for
were 12 cases in which JACCS took remedial action or made
Managers Handling Personal Information. This qualication is managed
improvements to its services or operations in response to customer
by the Japan Consumer Credit Association, which is an Authorized
feedback. Examples of such improvements included an extension of the
Personal Information Protection Organization recognized by Japanese
period during which Web-based members of JACCS Intercom Club
government agencies. Currently, over 90% of JACCS employees have
are able to view their transaction history (extended to a maximum of 15
qualications relating to personal information management.
months), and the release of a mobile-friendly version of Intercom Club
Furthermore, 83 JACCS employees passed the qualication test for
for smartphone viewing. JACCS takes customer feedback very seriously
Information Security (Managers and Elementary Level), which is run by
and will continue to promote improvements and reforms based on this
the Japan Association for Information Learning. As a result, a total of
valuable source of information.
202 employees hold qualications relating to information security. The

Company implements training programscovering all employeeson
Contributing to Society through Credit Cards
personal information protection on an ongoing basis, and is committed
As part of JACCS efforts to contribute to society through its business
to further enhancing appropriate protection of customers personal
activities, the Company issues credit cards that provide a charitable
information, credit card numbers, and other data.
donation based on usage. A certain percentage of the cards total

annual purchase amount is donated to a specied charitable
Voice Program Ensures Customer Feedback is Utilized

in Business Operations
organization or local area. JACCS fully incurs the amount that is
To ensure that opinions and inquiries received from customers are
The aim is to support efforts to revitalize local economies as well as
properly utilized and reected in its business operations, JACCS has set
raise awareness of the importance of making a social contribution.
up a page on its corporate website entitled VOICE. This page includes
Members may select from the following card lineup.
donated to charity, and no monetary cost is borne by the cardholder.
a feedback form through which customers may submit opinions,
Japan Guide Dog Association Card
Kumamoto Card
Hakodate Card
Donations go to the Japan Guide
Dog Association (JGDA)
JACCS CO., LTD.
HOKKAIDO I CARD
Donations go to the Kumamoto
Hometown Support program
Donations go to Hakodate City to

support aid programs for childrearing and other social welfare
programs
22
JACCS CARD Link
Annual Report 2015
Donations go to the Hokkaido

Heritage Council
When joining, members select a

charitable organizationwhich
receives donationsfrom an
extensive list. The list includes
such organizations as the Japan
Committee for UNICEF, the
Japanese Red Cross Society, and
the Japan Association for UNHCR.
FINANCIAL INFORMATION
24
MANAGEMENTS DISCUSSION AND ANALYSIS
28
BUSINESS RISKS
30
CONSOLIDATED BALANCE SHEETS
32
CONSOLIDATED STATEMENTS OF INCOME
33
CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS
35
CONSOLIDATED STATEMENTS OF CASH FLOWS
36
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
49
INDEPENDENT AUDITORS REPORT
JACCS CO., LTD.
Annual Report 2015
23

Analysis of Operating Performance
Composition of Total Volume

of New Contracts (%)
Other Operations
30.1%
Overview
In fiscal 2014, ended March 31, 2015, the final year of JACCS three-year medium-term business
Credit Card
33.5%
planACT11the Group strengthened measures aimed at achieving the plans goals. Specifically,
JACCS implemented measures to stimulate growth in its three core businessesthe credit business,
credit card business, and financing businesswhile reinforcing initiatives aimed at developing its
Financing
2.6%
Credit Guarantee
23.7%
overseas business and new business.

Installment Sales
Finance
10.1%
As a result, on a consolidated basis, the total volume of new contracts amounted to 3,061,297
million (US$25,510 million), an increase of 276,765 million (US$2,306 million), or 9.9%, compared
with the previous fiscal year. Total operating revenue grew 4,125 million (US$34 million), or 4.0%,
to 108,259 million (US$902 million).
Results by Business
Credit Card
In card shopping, REX CARD and other cards with enhanced point-earning ratios recorded robust
volumes of new contracts. Promotional campaigns such as JACCS Loyal Members Program (a
service under which users qualify to receive various rewards depending on the usage volume during
the previous year) contributed to performance, and the volume of new contracts grew.
JACCS formed alliances with a wide range of enterprises with close ties to local communities,
such as supermarkets and gas stations, and issued new co-branded cards.
As a result, on a consolidated basis, in the credit card business the volume of new contracts
increased 14.0% compared with the previous fiscal year, to 1,026,247 million (US$8,552 million),
and operating revenue increased 3,026 million (US$25 million), or 12.4%, to 27,444 million
(US$228 million).
Installment Sales Finance
In shopping credits, underpinned by strengthened usage-promotion campaigns and other measures, a
pullback following the April 2014 increase in the consumption tax rate was quickly absorbed and the
volume of new contracts followed a healthy trend. However, from the third quarter onward, growth in
the volume of new contracts in the fiscal year under review was subdued. This was due to the
About Five Key Business Lines

The three core businesses operated by JACCS
that are introduced on pages 1416 are classified
according to the following five business segments
for Japanese accounting and regulatory disclosure
purposes.
24
JACCS CO., LTD.
Annual Report 2015
Credit Card
JACCS issues credit cards to customers who pass
a credit check conducted by JACCS. Customers who
become cardholders receive offers for shopping and
other services by presenting their card and signing at
member stores partnering with JACCS. These include
department stores, specialty stores, dining establishments,
hotels, leisure facilities, and more. JACCS pays member
stores for purchases in a single lump payment, and
collects the money from the cardholder using payment
methods set down in the contract. Aside from the proper
card issued by JACCS, there also exists partner cards,
called house cards.
Installment Sales Finance

When a consumer makes a purchase at a member
store partnering with JACCS, JACCS pays the purchase
amount for customers who pass the credit check
conducted by JACCS. In other words, consumers who
do not have credit cards can also make high-priced
purchases. Consumers have the option of making
several payments, or paying all at once. This is the
business area where JACCS is stronger than other
credit card companies.
aftereffect in some industries of the previous fiscal years performance, which had been strongly
affected by heightened demand ahead of the tax rate increase.
3,500
(Billions of Yen)
As part of a strategy to grow Web-related services, JACCS added new functionality to WeBBy
3,061
3,000
(an Internet-based in-store credit application service), which led to a reduction in the time required
to conduct credit screening. Such initiatives helped to enhance the convenience of administrative
2,500
procedures.
2,784
2,328
2,387
2,480
Credit card
2,000
Installment
sales finance
1,500
Credit
guarantee
1,000
Financing
500
Other
operations
In auto loans, JACCS executed programs catering to each sales channel and worked to maintain
and expand market share. As part of its focus on promoting Web-related services, JACCS added new
features to its WeBBy Auto service. The Company offered such new services as the capability for
affiliated dealerships to link their in-house sales system to WeBBy Auto.
In January 2015, JACCS entered business agreements with General Motors Japan Limited and
0
Jaguar Land Rover Japan Limited as new alliance partners, and began providing a range of loan
2011
2012
2013
2014
2015
products in cooperation with these partners.

As a result, on a consolidated basis, the installment sales finance business recorded a 5.0%
increase in the volume of new contracts, to 307,767 million (US$2,564 million). Operating revenue
increased 2,004 million (US$16 million), or 11.5%, to 19,479 million (US$162 million).
Credit Guarantee
Within personal loan guarantees for financial institutions, JACCS expanded business related to BTMUs
Web-based loan products as well as business with regional banks. This helped drive a large increase
in the volume of new contracts compared with the previous fiscal year in both loans on deed and
card-based loans.
Housing loan guarantees on condominiums for investment purposes performed strongly,
reflecting robust market conditions.
In auto loan guarantees, the volume of new contracts recorded a sound performance,
underpinned by JACCS efforts to cultivate relationships with each category of dealerdomesticbrand new vehicle, foreign-brand new vehicle, and used vehicle.
As a result, on a consolidated basis, the credit guarantee business recorded a 5.4% increase in
the volume of new contracts, to 725,019 million (US$6,041 million). Operating revenue rose 678
million (US$5 million), or 1.7%, to 39,861 million (US$332 million).
Credit Guarantee
Member stores such as automobile dealerships or
housing companies who partner with JACCS can have
JACCS run a credit check on those consumers when
they apply to make a purchase. Consumers who pass
the check get financing from a partner financial
institution, and JACCS handles debt guarantees, as well as
collection for installment payments. Most of our guarantee
operations are in auto loans and housing loans.
Financing
Cash advance services are available at cash dispensers
and ATMs for holders of JACCS credit cards or loan
cards. Credit checks are run on consumers who apply
for loans from JACCS, and persons who pass can borrow
money in the form of collateralized or uncollateralized
direct financing and housing loans.
Other Operations
This area is dominated by our bill collection services, in
which JACCS acts as an agent for partner companies in
collecting payments, eliminating the need for the partner
company to allocate its own time, personnel, and money.
The bill collection business is an asset-less, fee-based
business which sees stable income once a contract is
signed.
JACCS CO., LTD.
Annual Report 2015
25
Financing
Total Operating Revenue

(Billions of Yen)
In cash advances, despite the execution of promotional campaigns to stimulate usage, the consolidated
150
volume of new contracts continued to decline. An increase in the volume of new contracts in other
types of financing meant the volume of new contracts for the financing business as a whole was
116
120
107
102
104
108
largely unchanged compared with the previous fiscal year.

As a result, on a consolidated basis, the financing business recorded a 0.3% increase in the
90
volume of new contracts, to 79,235 million (US$660 million). Operating revenue fell 2,076 million
60
(US$17 million), or 14.0%, to 12,706 million (US$105 million).
30
Other Operations
Bill collection services achieved a robust volume of new contracts, driven by such areas as rent
0
2011
2012
2013
2014
2015
collection and fitness club membership fees. The full rollout of JACCS new system (CYBER System)
enabled the Company to offer outsourcing customers an enhanced level of services.
Among consolidated subsidiaries in other operations, sales programs were strengthened in the
leasing operations provided by JACCS Lease Co., Ltd., which contributed to growth in the volume of
Net Income
(Billions of Yen)
new contracts.
7.6
7.1
6.8
As a result, on a consolidated basis, other operations posted an 11.9% increase in the volume of
new contracts, to 923,027 million (US$7,691 million). Operating revenue* increased 492 million
6.5
(US$4 million), or 5.9%, to 8,766 million (US$73 million).

* Operating revenue presented for other operations is the sum of other operating revenue and financial revenue.
4.3
Operating Expenses and Net Income

Total operating expenses increased 4,386 million (US$36 million), or 4.8%, compared with the
2
previous fiscal year, to 96,284 million (US$802 million). Although financial expenses and personnel
expenses decreased, driven by a favorable environment for operations and procurement, such factors
0
2011
2012
2013
2014
2015
as growth in trade receivables and strategic investment in IT systems led to increases in procurement
expenses, information processing expenses, and doubtful accounts-related expenses.
Operating income decreased 261 million (US$2 million), or 2.1%, compared with the previous
fiscal year, to 11,975 million (US$99 million), and ordinary income declined 287 million (US$2
Total Assets
million), or 2.3%, to 11,951 million (US$99 million).
(Billions of Yen)
Consolidated net income increased 603 million (US$5 million), or 9.3%, compared with the
3,500
3,158
2,800
2,786
2,896
2,725
previous fiscal year, to 7,107 million (US$59 million).

Net income per share amounted to 41.42 (US$0.34), an increase of 9.8% compared with the
2,718
previous fiscal year. The Company implemented cash dividends totaling 14.00 (US$0.11) per share
2,100
applicable to the fiscal year under review, which remained unchanged from the previous fiscal year.
1,400
Analysis of Financial Position

Fund Procurement
700
The Companys basic fund procurement policy is to maintain and strengthen the relationships it has
established to date with financial institutions while diversifying fund procurement, and emphasizing
0
2011
26
2012
JACCS CO., LTD.
2013
2014
2015
Annual Report 2015
stability and cost considerations.
Since the Company undertakes direct financing in capital markets, it obtains credit ratings for
Credit Rating
its bonds.
Financial Position
R&I
JCR
Long term
A-
A-
Short term
a-1
J-1
Total assets at March 31, 2015, amounted to 3,158,044 million (US$26,317 million), an increase of
261,639 million (US$2,180 million), or 9.0%, compared with the previous fiscal year-end.
Total current assets increased 246,239 million (US$2,051 million), to 3,077,959 million
(US$25,649 million). This increase mainly reflected increases in accounts receivable-installment salescredit guarantee, accounts receivable-installment, and lease investment assets.
Total noncurrent assets increased 15,400 million (US$128 million) compared with the previous
Total Net Assets

(Billions of Yen)
150
fiscal year-end, to 80,085 million (US$667 million), reflecting increases in investment securities,
software, and net defined benefit asset.
132
120
Total current liabilities at March 31, 2015, amounted to 2,566,193 million (US$21,384 million),
an increase of 226,405 million (US$1,886 million) compared with the previous fiscal year-end,
117
111
122
105
90
reflecting increases in accounts payable-credit guarantee and commercial papers.

Total noncurrent liabilities at fiscal year-end increased 25,100 million (US$209 million), to
60
459,004 million (US$3,825 million). Although long-term loans payable decreased, bonds payable
increased.
30
Total net assets increased 10,133 million (US$84 million), to 132,846 million (US$1,107
million), reflecting increases in retained earnings and valuation difference on available-for-sale
0
2011
2012
2013
2014
2015
securities. The equity ratio was unchanged at 4.2%.

Net assets per share amounted to 772.67 (US$6.43) at fiscal year-end, an increase of 8.0%
compared with the previous fiscal year-end.
CF from Operating Activities
CF from Investing Activities
CF from Financing Activities
Cash Flows
(Billions of Yen)
Cash Flows
135
115.1
Net cash used in operating activities amounted to 86,683 million (US$722 million). Significant items
included increase in notes and accounts payable-trade of 116,216 million (US$968 million), income
104.1
90
72.8
before income taxes and minority interests of 11,576 million (US$96 million), and increase in notes
and accounts receivable-trade of 228,806 million (US$1,906 million).
45
36.2
Net cash used in investing activities amounted to 13,942 million (US$116 million). Significant
items included purchase of property, plant and equipment and intangible assets of 9,424 million
15.1
0
-4.5
-4.1
-8.9
(US$78 million) and purchase of investment securities of 4,698 million (US$39 million).
Net cash provided by financing activities amounted to 115,197 million (US$959 million).
-45
-13.9
-33.8
-47.9
-61.1
Significant items included proceeds from long-term loans payable of 82,326 million (US$686 million),
net increase in commercial papers of 50,800 million (US$423 million), proceeds from issuance of
-8.3
-90
2011
2012
2013
-89.4
2014
-86.6
2015
bonds of 50,000 million (US$416 million), and repayment of long-term loans payable of 86,441
million (US$720 million).
As a result, cash and cash equivalents at end of period totaled 85,491 million (US$712 million),
an increase of 14,607 million (US$121 million) compared with the previous fiscal year-end.
JACCS CO., LTD.
Annual Report 2015
27
BUSINESS RISKS
1. Credit risk
Risk of increase in allowance for doubtful accounts
The incidence of customer arrears is at a stable level, and at present the Company
does not see any factors likely to lead to a large increase in arrears cases. Hence, the
Company expects the quality of its receivables portfolio to remain high. Accompanying
growth in the total amount of receivables, although the Company anticipates that a
certain percentage of receivables will fall into arrears, the impact of such cases on the
Companys operating performance is likely to be minimal.
Claims for the repayment of excess interest are likely to have a minimal impact
on the Companys operating performance since the Company complied with the interest
rate ceilings stipulated in the Interest Limitation Law.
Member store risk
There is the possibility that member stores may fall into bankruptcy owing to deterioration
in financial soundness, and that such stores may cease the provision of services or the
delivery of goods to the Companys customers. In such cases, the Company may suffer
damage, which may affect its operating performance.
Pursuant to a revision of the Installment Sales Law in 2008, if a specified-contract
member store were to engage in inappropriate sales activity (excessive-volume sales,
misrepresentation, etc.), customers subject to such behavior would be able to withdraw
their declaration of intent regarding the application to enter into a contract with the seller.
If inappropriate sales activity were recognized to have occurred, affected customers could
claim refunds from the credit company. If there were an increase in inappropriate sales
activity by member stores, the Company may suffer damage, which may affect its
operating performance.
2. Market-related risk
Risk of increase in funding interest rates
As of March 31, 2015, the Groups overall fund procurement (including straight
corporate bonds and commercial paper) fixed interest-rate ratio (including swaps)
stood at 55.9%, and the floating interest-rate ratio stood at 44.1%. While funding
interest rates fluctuate according to market trends, interest rates applied to loans
extended by the Company and transaction conditions between the Company and
member stores and customers in its credit card operations and installment sales
finance operations are determined comprehensively through a variety of factors,
including competitive conditions, and furthermore are contingent upon changes
in member rules and contracts. Consequently, since a time lag arises before any
increase in interest rates is reflected in transaction conditions, a change in the
financial situation leading to funding interest-rate fluctuations may affect the Groups
operating performance. As of March 31, 2015, the Company has received the
following credit ratings from Japan Credit Rating Agency, Ltd. (JCR), and Rating and
Investment Information, Inc. (R&I): Long-term bonds both A-, commercial paper J-1
(JCR) and a-1 (R&I). The Companys commercial paper issuing limit is set at 300
billion (US$2,500 million), and there are unlikely to be difficulties in fund procurement
in the near term. However, if the Groups operating performance were to deteriorate,
its credit ratings and creditworthiness would be downgraded and it would be forced
to raise funds at higher interest rates than normal. Consequently, the Company would
face higher funding costs from capital markets and financial institutions, which may
affect its operating performance.
Risk of decline in prices of investment securities
As of March 31, 2015, the Group holds investment securities amounting to 25,778
million (US$214 million) (market-listed and unlisted shares, etc.) and property, plant
and equipment amounting to 20,087 million (US$167 million) (land, buildings and
structures, etc.). There is the possibility that the Company may record valuation losses
on such holdings owing to declines in market prices or impairment of investment value.
3. Administrative risk
In the operation of its businesses, the Group conducts a wide variety and high volume
of administrative processing. The Group works to ensure that all administrative
processing is carried out correctly and in accordance with fundamental rules, and aims
28
JACCS CO., LTD.
Annual Report 2015
to enhance the efficiency of these operations, including through the implementation of

measures to improve the accuracy of processing, prevent fraud, and increase the level
of processing systemization. However, in the event that an accident or fraud were to
occur stemming from a failure to carry out correct administrative processing, depending
on the nature and scale of such an occurrence, it may affect the trust of the Groups
customers or member store businesses. In such a case, the Company may face liability
for damages and a loss of public credibility, which may affect the Groups operating
performance.
4. System risk
While the Companys core information system comprises the security management
structures outlined below, in the event of a malfunction or stoppage in the core
information system, the Groups operations may be halted, which may affect the
Companys operating performance.
(1) The Companys core computer system, called JANET, comprises three main
systemsprocessing, input/output (I/O), and operational monitoring. All three systems
are installed in an information center managed by a contracted operations company.
This information center has taken earthquake countermeasures and installed multiple
electric power supply lines as well as electrical generator equipment. Hence, even if
outside supply were disrupted, the center could remain operational for several days
using its own supply. The information center makes a backup of data necessary for the
resumption of operations, which is stored at a separate location more than 60 kilometers
away. Furthermore, in case of a contingency affecting I/O center processing, such
critical operations as member store settlement operations can be performed at an
alternate processing center. In such a case, since operations would be carried out on
a temporary basis, customer services may be adversely affected.
(2) The Company uses the JANET system to manage most information relating to its
operations, including customer personal and credit information and member store
transaction conditions. JANET comprises a dedicated network, and although external
access paths are completely blocked, the Company implements a range of other
measures as part of its security management, as summarized below:
(i) JANET terminal functions are set up in such a way that each user is restricted to
an authorized set of functions necessary for business operations, depending on the
terminals location and the users position and job.
(ii) Each set of terminal operations is recorded in a log, which is monitored to ensure
that operations are valid.
(iii) Terminals are all controlled through a system of locks, and the terminal equipment
cannot be removed from its installed location.
(iv) Terminals do not include I/O ports for removable recording media, and the
equipment is configured so that individuals cannot introduce, input, output, or
record data.
(v) System access for system developers and operators must be authorized in advance
and requires the application for and approval of a user ID, which must be
surrendered again after use. Monitoring is carried out on a daily basis to ensure
that usage is appropriate.
(vi) Within the scope of Management of the JANET Host System Development,
Maintenance and Operation, the Company has acquired certification under the
international standard relating to information security, ISO/IEC 27001:2013. Based
on this standard, the Company is able to effectively pursue measures relating to
information security.
5. Compliance risk
Within the Group, the Company conducts money lending, credit card, and installment
sales finance operations, and the Companys consolidated subsidiaries conduct servicer
and other operations. Pursuant to laws and regulations, these businesses require
registration with or permits issued by the relevant authorities. From the fiscal year
ended March 31, 2014, the Company has commenced several new businesses in
such areas as advance-payment methods and the transfer of funds. To ensure strict
compliance with laws and regulations, the Group has established compliance systems
as outlined below. However, in the event that the Group engaged in activity that was in
violation of laws or regulations, the Group may be subject to punishment by relevant
authorities pursuant to laws and regulations (business improvement order, partial or full
business suspension order, revocation of registration, etc.), which may affect the
Companys operating performance.
Installment Sales Law and Special Transactions Law
The Companys credit card and installment sales finance operations are subject to the
Installment Sales Law. For this reason, the Company must ensure that its business
operations comply with the conduct rules stipulated in this law (examination of amount
of expected ability to pay, delivery of written documents, member store investigation,
and appropriate management of credit card numbers, etc.) as well as civil rules (plea
for suspension of payments, credit contract cooling off, and damages relating to
cancellation of contracts, etc.). The Company must also comply with the voluntary rules
of the Accredited Installment Sales Association, which are based on the Installment
Sales Law. This laws objectives are to strive for the sound development of transactions
relating to installment sales, etc., through the assurance of fair transactions, prevention
of infringements against purchasers, and establishment of measures necessary for the
appropriate management of credit card numbers, etc., as well as to protect the interests
of purchasers, facilitate the smooth distribution of goods and provision of services, and
thereby contribute to the countrys economic development. The Company conducts its
business operations so that these objectives are properly realized.
Pursuant to the 2008 revision of the Installment Sales Law, the Company
implemented a major review of its business relationships with stores that are subject
to the Special Transactions Law to ensure that the Company executes appropriate
examination of such stores. The Company has also implemented measures to prevent
excessive credit through organizational reforms and the development of information
systems to enable examination of amount of expected ability to pay. As a result, the
quality of the Companys receivables portfolio has improved and write-offs for doubtful
accounts has decreased. At present, the Company is conducting business operations
in accordance with the Installment Sales Law without any particular problems.
Money Lender Business Law
The Companys financing business is subject to the Money Lender Business Law. For
this reason, the Company must ensure that its business operations comply with various
regulations stipulated in this law (prohibition of excessive lending, disclosure of lending
conditions and indicators, delivery of written documents, keeping of account ledger,
collection activity regulation, return of claim deed, etc.) and voluntary rules of the Japan
Financial Services Association, which are based on this law.
6. Information-related risk
The nature of the Groups business involves the acquisition, retention, and use of
a large volume of personal information, particularly centered on personal credit
information (including credit card numbers and other stand-alone information). Although
the Group has rigorously handled such information since prior to the enactment of the
Personal Information Protection Law, in the event of a leak or loss of personal
information from the Group or its outside contractors, or the fraudulent use of such
information, the Group may face a loss of credibility and liability for damages, which
may affect the Companys operating performance. In addition, if the Company were to
commit a legal violation as a business operator that handles personal information, it
may be subject to administrative measures, including recommendations and orders.
Led by the Compliance Control Department, the Group strives to ensure that
personal information is handled appropriately and to maintain sound security
management. The Company and four of its consolidated subsidiaries have acquired
Privacy Mark certificationa system to assess measures to protect personal
informationfrom the Japan Information Processing Development Corporation
(JIPDEC), and are working to ensure its effectiveness.
7. Disaster risk
In preparation for unexpected situations, including earthquakes, large-scale disasters,
and accidents, the Group has established a safety-confirmation system, prepared a
disaster response manual, formulated operational rules for its Emergency Response
Committee, and established a Business Continuity Plan (BCP). These and other
measures are focused on building the Groups crisis management system. However, in
the event of a crisis whose scale exceeds the Groups assumptions, leading to decisive
damage to the Groups physical and human assets, there is the possibility that this may
result in the suspension of operations or make the continuation of operations
problematic.
8. Tangible asset risk
There is the possibility that tangible assets owned by the Group may sustain damage
owing to natural disasters, such as earthquakes and typhoons, or man-made disasters,
such as acts of terrorism. The Group regularly ascertains the status of the movable
property and real estate assets that it manages, and implements disaster prevention
and crime prevention measures.
9. Personnel risk
Since the Group undertakes business operations involving a wide array of fields, it has
an ongoing program for recruiting high-quality personnel, and it is essential for the
Group to develop and train the people it has employed. However, if the Group were
unable to recruit or retain high-quality personnel, or it became unable to adequately
train its employees, this may affect the Groups operating performance.
10. Reputation risk
The Groups reputation is extremely important to the maintenance of its relationships
with customers, investors, regulatory agencies, and society in general. The Groups
reputation may be damaged by any of a diverse range of factors, including compliance
violations, employee fraud, computer system failures, or the behavior of third parties
that is difficult or impossible to control. If the Group were unable to avoid such factors
or respond adequately to such factors, it may lose current or future customers or
investors, and this may affect the Groups operating performance.
11. Related-company risk
The Group comprises the Company and its affiliates (five consolidated subsidiaries and
one equity-method affiliate). The Groups consolidated-to-nonconsolidated ratio stands
at 1.02 on an operating revenue basis, and 1.03 on an ordinary income basis (as of
March 31, 2015). Hence, within the Groups businesses, the proportion accounted for
by the Company is extremely high. Consequently, even in the event that a business risk
relating to a subsidiary materialized, it would not immediately have a significant effect
on the Group as a whole.
The business risks outlined above are based on information available to the Group as of
the filing date of the Companys financial results for the fiscal year ended March 31,
2015, and include information regarding major potential business risks envisaged by
the Group. However, this summary of risks does not cover all possible risks, and there
is the possibility that new risks may occur owing to a variety of contingent factors,
including changes in the future economic situation or the industrys operating
environment.
JACCS CO., LTD.
Annual Report 2015
29
CONSOLIDATED BALANCE SHEETS

JACCS CO., LTD. and Consolidated Subsidiaries
Thousands of
U.S. Dollars
Millions of Yen
As of March 31
2015
2014 (Unaudited)
2015 (Unaudited)
ASSETS
Current assets:
Cash and deposits
85,491
70,883
712,425
Accounts receivable-installment
1,040,953
943,782
8,674,608
Accounts receivable-installment sales-credit guarantee
1,876,591
1,762,417
15,638,258
32,939
14,145
274,491
1,633
1,461
13,608
Lease investment assets

Prepaid expenses
Deferred tax assets
2,680
2,499
22,333
Advances paid
29,326
32,175
244,383
Accounts receivable-other
18,597
16,434
154,975
1,615
1,391
13,458
Other
Allowance for doubtful accounts
(11,870)
(13,472)
(98,916)
3,077,959
2,831,720
25,649,658
8,463
8,310
70,525
Accumulated depreciation
(4,984)
(4,714)
(41,533)
Buildings and structures, net
3,478
3,596
28,983
Land
14,988
14,988
124,900
Other
4,444
4,012
37,033
(2,823)
(2,150)
(23,525)
Total current assets

Noncurrent assets:
Property, plant and equipment:
Buildings and structures
Accumulated depreciation
Other, net
Total property, plant and equipment
1,620
1,861
13,500
20,087
20,446
167,391
23,441
19,612
195,341
16
35
133
23,458
19,648
195,483
25,778
16,222
214,816
1,863
2,840
15,525
275
364
2,291
Intangible assets:
Software
Other
Total intangible assets
Investments and other assets:
Investment securities
Bad debts
Long-term prepaid expenses
Deferred tax assets
13
Guarantee deposits
1,835
1,883
15,291
Net defined benefit asset
6,528
4,165
54,400
Other
1,587
1,199
13,225
(1,331)
(2,098)
(11,091)
36,538
24,589
304,483
Total investments and other assets

Total noncurrent assets
Total assets
80,085
64,684
667,375
3,158,044
2,896,405
$26,317,033
The accompanying notes are an integral part of these statements. Previous years figures are presented solely for the convenience of readers.
30
JACCS CO., LTD.
Annual Report 2015
Thousands of
U.S. Dollars
Millions of Yen
As of March 31
2015
2014 (Unaudited)
2015 (Unaudited)
LIABILITIES
Current liabilities:
Notes and accounts payable-trade
Accounts payable-credit guarantee
Short-term loans payable
Current portion of bonds payable
41,953
39,877
349,608
1,876,591
1,762,417
15,638,258
171,642
150,679
1,430,350
2,300
19,166
Current portion of long-term loans payable
106,700
86,341
889,166
Commercial papers
199,500
148,700
1,662,500
Accounts payable-other
3,241
2,454
27,008
Accrued expenses
1,047
1,062
8,725
Income taxes payable
3,757
265
31,308
Deposits received
49,733
44,933
414,441
Unearned revenue
230
287
1,916
Provision for bonuses
2,608
2,665
21,733
Provision for point card certificates
3,367
2,534
28,058
97,765
93,002
814,708
5,754
4,564
47,950
2,566,193
2,339,788
21,384,941
95,000
47,300
791,666
356,118
380,592
2,967,650
14
29
116
Provision for loss on interest repayment
1,274
1,319
10,616
Deferred tax liabilities
3,704
1,838
30,866
Long-term guarantee deposited
2,778
2,681
23,150
114
142
950
459,004
433,903
3,825,033
3,025,198
2,773,692
25,209,983
Capital stock
16,138
16,138
134,483
Capital surplus
30,511
30,482
254,258
Retained earnings
79,287
74,359
660,725
Treasury stock
(1,625)
(1,768)
(13,541)
124,311
119,211
1,035,925
53,766
Deferred installment income

Other
Total current liabilities
Noncurrent liabilities:
Bonds payable
Long-term loans payable
Provision for directors retirement benefits
Other
Total noncurrent liabilities
Total liabilities
NET ASSETS
Shareholders equity:
Total shareholders equity

Accumulated other comprehensive income:
Valuation difference on available-for-sale securities
6,452
3,190
Deferred gains or losses on hedges
(41)
(31)
(341)
Foreign currency translation adjustment
905
(8)
7,541
1,080
276
9,000
8,396
3,426
69,966
137
74
1,141
132,846
122,712
1,107,050
3,158,044
2,896,405
$26,317,033
Remeasurements of defined benefit plans

Total accumulated other comprehensive income
Subscription rights to shares
Total net assets
Total liabilities and net assets
JACCS CO., LTD.
Annual Report 2015
31
CONSOLIDATED STATEMENTS OF INCOME

2015
Operating revenue:
Revenue from credit card business
Revenue from installment sales finance business
Revenue from credit guarantee
Financing revenue
Other operating revenue
Financial revenue
Interest income
Dividends income
Other financial revenue
Total financial revenue
Total operating revenue
2014 (Unaudited)
2015 (Unaudited)
27,444
19,479
39,861
12,706
8,309
24,418
17,475
39,183
14,782
7,841
$228,700
162,325
332,175
105,883
69,241
73
368
14
457
108,259
112
320
0
433
104,134
608
3,066
116
3,808
902,158
Operating expenses:
Selling, general and administrative expenses
Financial expenses:
Interest on loans
Interest on commercial papers
Other financial expenses
Total financial expenses
Total operating expenses
87,797
83,045
731,641
6,976
238
1,272
8,487
96,284
7,499
176
1,176
8,852
91,898
58,133
1,983
10,600
70,725
802,366
Operating income
11,975
12,236
99,791
37
148
186
108
79
187
308
1,233
1,550
205
5
210
11,951
162
23
185
12,238
1,708
41
1,750
99,591
80
80
560
560
666
666
56
0
279
118
455
11,576
53
14
68
12,730
466
0
2,325
983
3,791
96,466
4,635
(165)
4,469
7,107
7,107
1,785
4,439
6,225
6,505
0
6,504
38,625
(1,375)
37,241
59,225
$ 59,225
Non-operating income:
Equity in earnings of affiliates
Miscellaneous income
Total non-operating income
Non-operating expenses
Miscellaneous loss
Total non-operating expenses
Ordinary income
Extraordinary income:
Gain on sales of investment securities
Total extraordinary income
Extraordinary loss:
Loss on retirement of noncurrent assets
Loss on valuation of investment securities
Expenses related to 60th-anniversary commemorative events
Loss on change in equity
Total extraordinary losses
Income before income taxes and minority interests
Income taxes-current
Income taxes-deferred
Total income taxes
Income before minority interests
Minority interests in income
Net income
32
Thousands of
U.S. Dollars
Millions of Yen
JACCS CO., LTD.
Annual Report 2015

Millions of Yen
Year ended March 31, 2015

Balance at beginning of year
Cumulative effects of changes in
accounting policies
Restated balance
Changes during the consolidated
fiscal year
Dividends from surplus
Net income
Purchase of treasury stock
Disposal of treasury stock
Inserted directly into net assets-foreign
currecy translation adjustment
Net changes of items other
than shareholders equity
Total changes during the consolidated
fiscal year
Balance as of March 31, 2015
Capital stock
16,138
Shareholders equity
Retained earnings
74,359
Capital surplus
30,482
Treasury stock
(1,768)
119,211
393
393
16,138
30,482
74,753
(1,768)
119,605
29
(2,572)
7,107
(4)
147
(2,572)
7,107
(4)
176
29
4,534
143
4,706
16,138
30,511
79,287
(1,625)
124,311
Millions of Yen
Year ended March 31, 2015

accounting policies
Restated balance
fiscal year
Net income
fiscal year
Accumulated other comprehensive income

Foreign currency Remeasurements Total accumulated Subscription rights
Valuation difference
Deferred gains or
translation adjust- of defined benefit other comprehenon available-for-sale
to
losses on hedges
ment
plans
securities
sive income
shares
3,190
(31)
(8)
276
3,426
74
Total net
assets
122,712
393
3,190
(31)
(8)
276
3,426
74
123,106
(2,572)
7,107
(4)
176
913
913
913
3,261
(10)
804
4,055
62
4,118
3,261
(10)
913
804
4,969
62
9,739
6,452
(41)
905
1,080
8,396
137
132,846
Millions of Yen
Year ended March 31, 2014 (Unaudited)

fiscal year
Net income
Changes in the scope of consolidation
fiscal year
Capital stock
16,138
Capital surplus
30,468
Shareholders equity
Retained earnings
69,830
13
(2,078)
6,504
103
(916)
146
(2,078)
6,504
(916)
159
103
Treasury stock
(997)
115,439
13
4,529
(770)
3,771
16,138
30,482
74,359
(1,768)
119,211
JACCS CO., LTD.
Annual Report 2015
33
Millions of Yen

fiscal year
Net income
Changes in the scope of consolidation
fiscal year

RemeasureValuation differ- Deferred gains Foreign curSubscription
Total accumulated other
ments of
ence on available- or losses on rency translation
rights to
defined benefit comprehensive income
for-sale securities
hedges
adjustment
shares
plans
2,416
(38)
(385)

1,993
36
Minority
interests
Total net
assets
17
117,486
(2,078)
6,504
(916)
159
103
377
377
377
773
276
1,056
37
(17)
1,076
773
377
276
1,433
37
(17)
5,226
3,190
(31)
(8)
276
3,426
74
122,712
Thousands of U.S. Dollars

accounting policies
Restated balance
fiscal year
Net income
fiscal year
Capital stock
$134,483
Shareholders equity
Retained earnings
$619,658
Capital surplus
$254,016
Treasury stock
$(14,733)
$ 993,425
3,275
3,275
134,483
254,016
622,941
(14,733)
996,708
241
(21,433)
59,225
(33)
1,255
(21,433)
59,225
(33)
1,466
241
37,783
1,191
39,216
$134,483
$254,258
$660,725
$(13,541)
$1,035,925

accounting policies
Restated balance
fiscal year
Net income
fiscal year

Foreign currency Remeasurements Total accumulated Subscription rights
Valuation difference
Deferred gains or
translation adjust- of defined benefit other comprehenon available-for-sale
to
losses on hedges
ment
plans
securities
sive income
shares
$26,583
$(258)
$ (66)
$2,300
$28,550
$ 616
JACCS CO., LTD.
Annual Report 2015
$1,022,600
3,275
26,583
(258)
(66)
2,300
28,550
616
1,025,883
(21,433)
59,225
(33)
1,466
7,608
7,608
7,608
27,175
(83)
6,700
33,791
516
34,316
27,175
(83)
7,608
6,700
41,408
516
81,158
$53,766
$(341)
$7,541
$9,000
$69,966
$1,141
$1,107,050
34
Total net
assets
CONSOLIDATED STATEMENTS OF CASH FLOWS

2015
Cash flows from operating activities:
Income before income taxes and minority interests
Depreciation and amortization
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for point card certificates
Increase (decrease) in provision for retirement benefits
Increase (decrease) in provision for loss on interest repayment
Interest and dividends income
Interest expenses
Foreign exchange losses (gains)
Loss on retirement of property, plant and equipment and intangible assets
Loss (gain) on sales of investment securities
Loss (gain) on valuation of investment securities
Equity in earnings (losses) of affiliates
Decrease (increase) in notes and accounts receivable-trade
Decrease (increase) in accounts receivable-other
Decrease (increase) in prepaid pension costs
Decrease (increase) in net defined benefit asset
Increase (decrease) in notes and accounts payable-trade
Increase (decrease) in deferred installment income
Decrease (increase) in other assets
Increase (decrease) in other liabilities
Subtotal
Interest and dividends income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Thousands of
U.S. Dollars
Millions of Yen
2014 (Unaudited)
2015 (Unaudited)
11,576
6,175
(2,374)
(60)
832
(44)
(442)
7,752
(14)
56
(80)
0
(37)
(228,806)
(2,162)
(517)
116,216
4,762
1,604
7,327
(78,237)
443
(7,763)
(1,125)
(86,683)
12,730
4,406
(2,563)
10
397
1
(99)
(433)
8,076
10
53
(560)
14
(108)
(191,937)
(680)
4,273
(3,739)
85,967
8,504
(5,349)
3,816
(77,208)
442
(8,210)
(4,452)
(89,429)
Cash flows from investing activities:

Proceeds from redemption of time deposits
Purchase of property, plant and equipment and intangible assets
Purchase of investment securities
Proceeds from sales of investment securities
Payments for guarantee deposits
Proceeds from collection of guarantee deposits
Payments of loans receivable
Collection of loans receivable
Net cash provided by (used in) investing activities
(9,424)
(4,698)
171
(50)
44
(12)
27
(13,942)
278
(10,591)
(18)
1,906
(96)
152
(11)
25
(8,355)
(78,533)
(39,150)
1,425
(416)
366
(100)
225
(116,183)
Cash flows from financing activities:

Net increase (decrease) in short-term loans payable
Net increase (decrease) in commercial papers
Proceeds from long-term loans payable
Repayment of long-term loans payable
Proceeds from issuance of bonds
Redemption of bonds
Proceeds from sales of treasury stock
Cash dividends paid
Net cash provided by (used in) financing activities
20,913
50,800
82,326
(86,441)
50,000
176
(4)
(2,572)
115,197
850
59,900
113,415
(113,508)
45,000
(30,000)
159
(916)
(2,078)
72,821
174,275
423,333
686,050
(720,341)
416,666
1,466
(33)
(21,433)
959,975
35
14,607
70,883
85,491
126
(24,836)
95,720
70,883
291
121,725
590,691
$ 712,425
Effect of exchange rate change on cash and cash equivalents

Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
96,466
51,458
(19,783)
(500)
6,933
(366)
(3,683)
64,600
(116)
466
(666)
0
(308)
(1,906,716)
(18,016)
(4,308)
968,466
39,683
13,366
61,058
(651,975)
3,691
(64,691)
(9,375)
(722,358)
JACCS CO., LTD.
Annual Report 2015
35
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Basis of Presenting the Consolidated Financial Statements

The accompanying consolidated financial statements of JACCS CO., LTD. (hereinafter the Company) and consolidated subsidiaries (together the Group)
are prepared for submission to investors of the Company.
The consolidated financial statements are prepared, with respect to recognition and measurement, in accordance with accounting principles generally
accepted in Japan (Japanese GAAP).
With respect to presentation and disclosure, the consolidated balance sheets, the consolidated statement of income, the consolidated statement of changes
in net assets and related notes, comprising a summary of significant accounting policies and other explanatory information are prepared in accordance with
the Ordinance on Company Accounting related to Japanese Companies Act , and are translated into English from the consolidated statutory report required
under the Ordinance on Company Accounting related to Japanese Companies Act. The consolidated statement of cash flows including a summary of significant
accounting policies and other explanatory information are prepared in accordance with the Ordinance on Terminology, Forms, and Preparation Methods of
Consolidated Financial Statements (excluding comparative information).
Figures in these consolidated financial statements are rounded down to the nearest million of yen.
The accompanying consolidated financial statements include comparative information and translations of Japanese yen amounts into U.S. dollars, both of
which are presented solely for convenience of readers outside Japan and are marked as Unaudited to be differentiated from the audited financial statements.
The translations are presented using the prevailing approximate exchange rate at March 31, 2015, which was 120 to US$1 and should not be construed as a
representation that Japanese yen amounts have been, could have been or could in the future be converted into U.S. dollars at this or any other rate of exchange.
The presentations described above are different in certain respects as to application and disclosure requirements of International Financial Reporting
Standards. Accordingly, the accompanying consolidated financial statements are intended for use only by those who are informed about Japanese GAAP.
1. Scope of Consolidation
(1) Number of consolidated subsidiaries: 5
JACCS Loan-Collection Service Co., Ltd.
JACCS Total Service Co., Ltd.
JACCS Lease Co., Ltd.
JACCS Payment Solutions Co., Ltd.
JACCS International Vietnam Finance Co., Ltd.
(2) Name of non-consolidated subsidiary
JACCS INTERNATIONAL (Hong Kong) Co., Ltd.
(Reason for excluding from the scope of consolidation)
This non-consolidated subsidiary is small in size and its total assets, operating revenue, net income/loss for the Companys equity interest and retained
earnings for the Companys equity interest do not have a significant impact on the consolidated financial statements.
2. Application of the Equity Method
(1) Number of equity-method affiliates: 1
PT Mitra Pinasthika Mustika Finance
On May 14, 2014, equity-method affiliate PT Sasana Artha Finance merged with PT Mitra Pinasthika Mustika Finance. PT Mitra Pinasthika Mustika Finance is
the surviving entity of the merger.
(2) Name of non-consolidated subsidiary not accounted for by the equity method
(Reason for excluding from application of the equity method)
The equity method does not apply to the above subsidiary because its net income/loss and retained earnings for the Companys equity interest do not have a
significant impact on the consolidated financial statements on an individual basis, nor on an aggregate basis.
(3) Matters of particular importance related to procedures for the application of the equity method
Owing to the difference in fiscal year-end date of PT Mitra Pinasthika Mustika Finance from the consolidated fiscal year-end, the financial statements of PT
Mitra Pinasthika Mustika Finance with its individual balance sheet date is used in preparing the consolidated financial statements.
3. Fiscal Years of Consolidated Subsidiaries
The fiscal year-end date of JACCS International Vietnam Finance Co., Ltd. is December 31. The financial statements of JACCS International Vietnam Finance
Co., Ltd. as of and for the year ended December 31 is used in preparing the consolidated financial statements of the Company. All material transactions that
occur during the period from January 1 to March 31 are adjusted for in the consolidation process.
36
JACCS CO., LTD.
Annual Report 2015
4. Summary of Significant Accounting Policies

(1) Basis and method of valuation of significant assets
1. Securities
Available-for-sale securities with fair market value readily available are stated at fair value as of the balance sheet date. The related valuation differences are
directly included in net assets and the cost of available-for-sale securities sold is determined by the moving-average method. Available-for-sale securities
without fair market value readily available are stated at the moving-average cost.
2. Derivatives
Derivatives are stated at fair value.
(2) Depreciation of significant depreciable assets
1. Property, plant and equipment (except for leased assets)
The declining-balance method is used, however, the straight-line method is used for buildings (excluding building fixtures) acquired on or after April 1, 1998.
2. Intangible assets (except for leased assets)
Software for internal use is amortized over the estimated useful lives using the straight-line method (the maximum period being 5 years).
3. Leased assets
Leased assets related to finance leases without transferring ownership are depreciated over the lease period as useful life using the straight-line method with
no residual value.
(3) Accounting for significant allowance and provisions
1. Allowance for doubtful accounts
Allowance for doubtful accounts is provided for possible losses on the collection of receivables. The amount of the allowance for general receivables is based
on the past write-off ratio. For certain receivables, such as the ones from debtors whose solvency is in doubt, the recoverability of each receivable is examined
individually and the estimated unrecoverable amounts are recognized as the allowance.
2. Provision for bonuses
For payment of bonuses to employees and executive officers having employee positions, provision for bonuses is provided for in the amount that is expected
to be paid.
3. Provision for point card certificates
For covering the cost of future card-point redemption when credit card members use their card-points given by the Company, the provision for point card
certificates is provided for in the amount that is expected to be used as of the balance sheet date.
4. Provision for directors retirement benefits
For payment of retirement benefits to directors and corporate auditors, provision for directors retirement benefits is provided for in the amount required to be
accrued at year-end in accordance with internal rules. Provided amounts on the consolidated balance sheets are solely for consolidated subsidiaries.
5. Provision for loss on interest repayment
Provision for loss on interest repayment is provided in order to prepare for requests for the repayment of interest on loans exceeding the Interest Rate Restriction
Act in the future, in the amount deemed necessary based on an estimate of the future repayment amount in consideration of the actual past results.
(4) Accounting method for employee retirement benefits
1. Method of period attribution for estimated retirement benefits
To calculate the employee retirement benefit obligations, a benefit formula basis is applied in attributing the estimated retirement benefits up to the end of this
consolidated fiscal year.
2. Methods for amortizing actuarial differences and past service costs
Past service costs are amortized using the straight-line method over a certain number of years (5 years) within the average remaining service period of the
employees as of the time such costs are incurred. With respect to actuarial differences for each consolidated fiscal year, the amount divided proportionally using
the straight-line method over a certain number of years (5 years) within the average remaining service period of employees as of the arising of such differences is
amortized from the immediately following consolidated fiscal year.
(5) Recognition of operating revenues
a. Revenue from individual customers
Revenue from individual customers is recognized at the time of payment due date by the following method:
Revenue from credit card business:
remaining debt balance method
Revenue from installment sales finance business: remaining debt balance method
Revenue from credit guarantee:
(partially at time of concluding
the guarantee contract)
Financing revenue:
b. Commission from member stores
Commission from member stores is recognized at the time of computing volume of new contracts.
JACCS CO., LTD.
Annual Report 2015
37
(6) Translation of significant assets and liabilities denominated in foreign currencies into yen
Monetary assets and liabilities denominated in foreign currencies have been translated into yen at the exchange rates in effect at the fiscal year-end. The
resulting exchange gain or loss is charged or credited to income. Assets and liabilities of the overseas subsidiary have been translated into yen at the
exchange rates in effect as of the settlement date of them, and revenues and expenses of the overseas subsidiary have been translated into yen at the
average rates prevailing during the period. The resulting translation differences are included in foreign currency translation adjustment in net assets.
(7) Accounting for significant hedging activities
a. Accounting for hedging activities
When derivative financial instruments are used as hedges and meet certain hedging criteria, gains or losses resulting from changes in the fair values of the
derivative financial instruments are deferred until the corresponding losses or gains on the hedged items are recognized.
Interest rate swaps which qualify for exceptional treatments are accounted for according to the exceptional treatments.
b. Hedging instruments and hedged items
Hedging instruments...........Derivatives transactions (interest rate swap)
Hedged items......................Loans payable
c. Hedging policy
Derivatives transactions are utilized to reduce risks arising from interest rate and foreign exchange fluctuations in the future.
d. Assessment of the efficacy of hedging activities
The aggregate of changes in cash flows from the hedging instruments and the hedged items is compared to every quarterly account, and evaluation of the
effectiveness of hedging activities is made. With regard to interest rate swaps accounted for according to the exceptional treatments, assessment of the
effectiveness is omitted.
(8) Cash equivalents
All highly liquid investments with a maturity of three months or less when purchased are considered cash equivalents.
(9) Other significant basis of presenting the consolidated financial statements
Accounting for consumption taxes
Consumption taxes are excluded from each transaction amount. Consumption taxes paid at acquisition of noncurrent assets, which are not deducted on the
consumption taxes calculation, are recorded as Other in investments and other assets and amortized equally over five years.
Changes in Accounting Policies

1. Application of Accounting Standards relating to Retirement Benefits
From the year ended March 31, 2015, the Company and its consolidated domestic subsidiaries have applied Article 35 of the Accounting Standard for Retirement
Benefits (ASBJ Statement No. 26, May 17, 2012) and Article 67 of the Guidance on Accounting Standard for Retirement Benefits (ASBJ Guidance No. 25, May
17, 2012). The Company revised its method for calculating retirement benefit obligations and current service costs, and changed the method for attributing
the estimated retirement benefits to periods from the application of point criteria to a benefit formula basis. The Company also changed the method used for
determining the discount rate.
The Company has applied the transitional measures stipulated in Article 37 of the Accounting Standard for Retirement Benefits, and at the beginning of the
year ended March 31, 2015, the effect of the change in method for calculating retirement benefit obligations and current service costs has been reflected in
retained earnings.
As a result, on April 1, 2014, the amount presented for net defined benefit assets increased by 610 million (US$5,083 thousand), and retained earnings
increased by 393 million (US$3,275 thousand).
The effect of these changes on operating income, ordinary income and income before income taxes and minority interests in the year ended March 31, 2015,
was minimal. The effect on net assets per share, net income per share and diluted net income per share in the year ended March 31, 2015, was also minimal.
2. Application of Practical Solution on Transactions of Delivering the Companys Own Stock to Employees etc. through Trusts
From the year ended March 31, 2015, the Company has applied the Practical Solution on Transactions of Delivering the Companys Own Stock to Employees etc.
through Trusts (Practical Issues Task Force (PITF) No. 30, March 26, 2015).
With regard to accounting treatment of trust agreements entered into prior to the start of the first fiscal year in which this practical solution was applied, the
Company has maintained the methods previously adopted for handling such transactions. Consequently, in the fiscal year ended March 31, 2015, there is no
effect on the preparation of consolidated financial statements from the adoption of this practical solution.
38
JACCS CO., LTD.
Annual Report 2015
Additional Information
Transactions of Delivering the Companys Own Stock to Employees etc. through Trusts
(1) Overview of transactions
At a meeting convened on November 5, 2012, the Board of Directors passed a resolution for the adoption of an employees incentive plan, which has the objective
of raising the Companys medium- to long-term corporate value. This plan is called the Employee Stock Ownership Plan (ESOP) Trust Account.
Under this plan, the Company established a trust, which has as its beneficiaries members of the JACCS Co., Ltd. Employee Stock Ownership Association (JESOA)
who satisfy a set of specific conditions. This trust made a block purchase in advance of issuance of shares by the Company, with the number of shares acquired
based on the estimated number of shares to be purchased by JESOA over the ensuing five-year period. Subsequently, the trust carries out sales of shares of the
Company to JESOA on a predetermined date each month. The method used for accounting for these transactions remains the method previously adopted.
(2) Residual treasury stock held by the trust
Shares residually held by the trust are recognized as treasury stock under net assets in the consolidated balance sheets. The book value of this treasury stock
was 697 million and the number of shares was 1,564 thousand as of March 31, 2014, and the corresponding figures as of March 31, 2015, were 550 million
(US$4,583 thousand) and 1,233 thousand shares, respectively. The average number of shares of treasury stock held during the year ended March 31, 2014, was
1,733 thousand, and the corresponding figure for the year ended March 31, 2015, was 1,389 thousand shares. The year-end number of shares held and average
number of shares held during the fiscal year are included within treasury stock and thus excluded from the calculation of per share information.
Previous years figures are presented solely for the convenience of readers.
Notes to the Consolidated Balance Sheets

Thousands of
U.S. Dollars
Millions of Yen
1. Pledged Assets
Assets pledged as collateral:
Debt secured by the above collateral:
Current portion of long-term loans payable
Total
2015
2014 (Unaudited)
2015 (Unaudited)
288,503
284,259
$2,404,191
75,125
45,827
168,305
289,257
59,925
34,324
190,772
285,021
$ 626,041
381,891
1,402,541
$2,410,475
Notes: Comparative information is not required to be disclosed under Japanese Companies Act, but is disclosed for the convenience of readers.
2. Guarantee obligations
The Company has a guarantee obligation in relation to the borrowings from financial institutions of a company outside the scope of consolidation.
Thousands of
U.S. Dollars
Millions of Yen
2015
PT Sasana Artha Finance
3,670
(400,000 million
Indonesian rupiahs)
1,783
2014 (Unaudited)
1,958
(220,000 million
Indonesian rupiahs)
2015 (Unaudited)
$
14,858
30,583
Note: On May 14, 2014, PT Sasana Artha Finance merged with PT Mitra Pinasthika Mustika Finance, with the latter becoming the surviving entity of the merger.
Foreign currency-denominated guarantee obligations are translated into yen at the exchange rate prevailing on the account closing date.
Previous years figures are presented solely for the convenience of readers.
Thousands of
U.S. Dollars
Millions of Yen
3. Deferred Installment Income

Credit card business
Installment sales finance
Credit guarantee
Financing
Other
Total
2015
770
34,416
62,559
19
0
97,765
2014 (Unaudited)
834
29,907
62,228
32
0
93,002
2015 (Unaudited)
$ 6,416
286,800
521,325
158
0
$814,708
Note: Comparative information is not required to be disclosed under Japanese Companies Act, but is disclosed for the convenience of readers.
JACCS CO., LTD.
Annual Report 2015
39
Notes to the Consolidated Statements of Changes in Net Assets

1. Type and Number of Shares Issued as of March 31, 2015 and 2014
2015
2014 (Unaudited)
Common stock: 175,395,808 shares 175,395,808 shares
2. Matters Concerning Dividends
2015
(1) Cash dividends paid
Resolution
June 26, 2014 Ordinary General
Meeting of Shareholders
November 5, 2014
Board of Directors Meeting
Type of shares
Common stock
Common stock
Total amount of dividend

1,383 million
(US$11,525 thousand)
1,210 million
Dividend per share

8.00
(US$0.066)
7.00
(US$0.058)
Record date
Effective date
March 31, 2014
June 27, 2014
September 30, 2014
December 5, 2014
Notes: The total dividend amount approved by a resolution of the Ordinary General Meeting of Shareholders held on June 26, 2014, includes 12 million (US$100 thousand) for The
Master Trust Bank of Japan, Ltd. (Employee Shareholding ESOP Trust Account 75579).
The total dividend amount approved by a resolution of the Board of Directors on November 5, 2014, includes 9 million (US$75 thousand) for The Master Trust Bank of
Japan, Ltd. (Employee Shareholding ESOP Trust Account 75579).
(2) Of the dividends whose record date belongs to the current fiscal year, the dividend whose effective date falls in the following fiscal year is as follows:
Resolution
Type of shares
Dividend source
Dividend per share
Record date
Effective date
1,210 million
7.00
Common stock
Retained earnings
(US$0.058)
March 31, 2015
June 29, 2015
Note: The total dividend amount planned for a resolution at the Ordinary General Meeting of Shareholders held on June 26, 2015, includes 8 million (US$66 thousand) for The
Master Trust Bank of Japan, Ltd. (Employee Shareholding ESOP Trust Account 75579).
2014 (Unaudited)
(1) Cash dividends paid
Resolution
November 5, 2013
Board of Directors Meeting
Type of shares
Dividend per share
Record date
Effective date
Common stock
1,050 million
6.00
March 31, 2013
June 28, 2013
Common stock
1,049 million
6.00
September 30, 2013
December 5, 2013
Notes: The total dividend amount approved by a resolution of the Ordinary General Meeting of Shareholders held on June 27, 2013, includes 11 million for The Master Trust Bank
of Japan, Ltd. (Employee Shareholding ESOP Trust Account 75579).
The total dividend amount approved by a resolution of the Board of Directors on November 5, 2013, includes 10 million for The Master Trust Bank of Japan, Ltd. (Employee
Shareholding ESOP Trust Account 75579).
(2) Of the dividends whose record date belongs to the fiscal year ended March 31, 2014, the dividend whose effective date falls in the following fiscal year is as follows:
Resolution
Type of shares
Dividend source
Dividend per share
Record date
Effective date
Common stock
Retained earnings
1,383 million
8.00
March 31, 2014
June 27, 2014
Note: The total dividend amount approved by a resolution of the Ordinary General Meeting of Shareholders held on June 26, 2014, includes 12 million for The Master Trust Bank of
Japan, Ltd. (Employee Shareholding ESOP Trust Account 75579).
3. Subscription rights to shares as of March 31, 2015 and 2014

2015
2014 (Unaudited)
Common stock: 566,000 shares 385,000 shares
40
JACCS CO., LTD.
Annual Report 2015
Notes to the Consolidated Statements of Cash Flows

Reconciliation of cash and cash equivalents in the consolidated statements of cash flows and the consolidated balance sheets
Thousands of
U.S. Dollars
Millions of Yen
Cash and deposits

Less: Time deposits with deposit term of over 3 months
Cash and cash equivalents
2015
85,491
85,491
2014 (Unaudited)
70,883
70,883
2015 (Unaudited)
$712,425
$712,425
Notes to Financial Instruments

1. Outline of Utilization of Financial Instruments
(1) Management policies
The Group operates consumer credit services including installment sales, credit card, credit guarantee and financing. To do such business, the Group
borrows money from financial institutions as indirect finance, and raises money by issuing bonds and commercial papers in consideration of market
conditions and length of finance. Thereby, the Group holds financial assets and liabilities having interest rate fluctuation risks. To avoid its unfavorable effect,
the Company applies asset liability management (ALM) using derivatives transactions as a measure. In addition, a consolidated subsidiary operates leasing
business.
(2) Contents of financial instruments and their risks
Financial assets held by the Group, which are mainly installment receivables on domestic installment sales finance and credit card business, are exposed to
the credit risks of the corresponding customers default of payments.
In terms of investment securities, which are mainly composed of equity stocks related to business or capital tie-ups and the like with business partners,
these assets are exposed to the credit risk of the issuer and the risk of market value fluctuations.
Loans payable, bonds payable and commercial papers are exposed to liquidity risk. There exists the possibility that the Group may have difficulty making
payment on a due date, such as the Company may not be able to raise funds in the markets under certain circumstances. Loans payable with variable
interest rates expose the Company to the risk of interest rate fluctuation. To avoid such risks, a part of loans payable is hedged by interest swap transactions.
Deposits at banks in foreign currencies are exposed to fluctuation of foreign exchanges.
Derivatives transactions include interest swap transactions which are carried as a measure of ALM. Interest fluctuation risks on loans payable hedged
by such hedging instruments are accounted for by the hedge accounting method. The effectiveness of hedging is assessed by comparing and evaluating
accumulated cash flow change of hedged items and that of hedging instruments during the period from the start of hedging and assessment time. In
addition, the Company uses exceptional treatments permitted for interest rate swaps hedging long-term loans payable.
(3) Risk management system of financial instruments
1. Control of credit risk
The Group establishes and operates credit control systems which practice credit assessment, establishment of credit limit, credit information control,
internal rating, setting of guarantee and mortgage and response to loans in trouble in conformity with the rules of credit control for each installment
loan. These credit controls are carried out by each credit investigation section and each area control division. In addition, conditions of credit control are
reviewed by the Credit Supervision & Operation Department, the Credit Administration Department and the Inspection Department.
2. Control of market risk
a. Control of interest risk
The Group controls interest fluctuation risk by means of ALM. Regulations and internal rules of ALM specify risk control measures and procedures and
the results of control are confirmed by the Board of Directors in conformity with ALM policies decided by the ALM Committee. The Finance Department
analyzes daily interest rate sensitivity based on estimated interest rates and makes a report every three months to the ALM Committee. Interest fluctuation
risks are hedged by interest rate swaps as a part of ALM.
b. Control of foreign exchange risk
The Group utilizes partially forward contracts, as for each matter, to cope with foreign exchange fluctuation risks, and there is not the handling now, but
may use part forward exchange contracts in future.
c. Control of market fluctuation risk
As investment securities are mainly composed of equity shares issued by companies which have relations with the Company in transactions or in capital
coalition, market environment and financial conditions of the issuing companies are monitored periodically. The Company carries out ongoing monitoring
of prices of investment securities. By considering the circumstances comprehensively and reporting these to senior management, the Company aims to
reduce the price fluctuation risk of its equity securities holdings.
JACCS CO., LTD.
Annual Report 2015
41
d. Derivatives transactions
Each section of execution of derivatives transactions, assessment of hedge effectiveness and operation control is separated to enhance internal checks.
Operations are carried out in conformity with regulations and internal rules.
e. Quantitative information relating to market risk
Financial instruments for trading purposes
The Company does not hold any financial instruments for trading purposes.
Financial instruments for other than trading purposes
The financial instruments most affected by the interest rate risk that is a main risk variable are mainly short-term loans payable, long-term loans
payable, bonds payable and interest swap transactions.
As for these financial instruments, the Company calculates the amount of influence that gives profit and loss of six months for the time being, using the
rational expected band of the interest rate of around six months after the term end. The Company uses the calculated amount of influence in a quantitative
analysis on managing the change risk of the interest rate. In calculations of the amount of influence concerned, the Company separates the financial
instruments concerned into the fixed interest rate group and the floating interest rate group. The Company then calculates the amount of influence that
gives profit and loss using the interest rate band during each appropriate period depending on an interest rate date. The Company assumes the risk
variable except for the interest rate is constant. That is, the Company does not consider correlation between interest rate and other risk variables.
As of March 31, 2015, the Company calculates that if the index interest rate had been higher by 10 basis point (0.1%), financial expenses would
increase 216 million (US$1,800 thousand).
However, influence exceeding the amount of calculation may occur if a fluctuation occurs beyond the rational expected band of the interest rate.
3. Control of liquidity risk on fundraising
The Group controls timely fund operations of the total group by ALM and manages liquidity risk by diversification of fundraising measures, acquisition of
commitment lines from multiple financial institutions and adjustment of length of fundraising in consideration of the market environment.
(4) Supplementary explanation to fair values of financial instruments
Fair values of financial instruments are composed of market prices and rationally computed prices in case market prices are not available. As the computation of
prices is subject to certain presumptions, prices may change under different presumptions. Contractual values of derivatives transactions in 2. Fair Values of
Financial Instruments do not represent the market risks on derivatives themselves.
2. Fair Values of Financial Instruments

The tables below show the amounts of financial instruments recorded in the consolidated balance sheets and their fair values as of March 31, 2015 and 2014,
as well as their differences. Financial instruments of which fair values were hardly available are not represented herein (See Note 2).
Millions of Yen
March 31, 2015

Cash and deposits
Accounts receivable-installment:
Investment securities:
Available-for-sale securities
Total assets
Commercial papers
Bonds payable*1
Long-term loans payable*2
Total liabilities
Derivatives transactions*3:
Hedge accounting applied
Total derivatives transactions
Other:
Loan guarantee contracts
Consolidated balance
sheet amount
85,491
1,040,953
(11,870)
(34,664)
994,419
Fair value
85,491
JACCS CO., LTD.
Annual Report 2015
1,038,869
44,450
18,350
1,098,261
171,642
199,500
97,300
462,818
931,261
18,350
1,142,711
171,642
199,500
98,236
466,929
936,307
44,450
936
4,110
5,046
(36)
(36)
(36)
(36)
209,621
*1 Current portion of bonds payable is included in bonds payable.

*2 Current portion of long-term loans payable is included in long-term loans payable.
*3 Figures presented are net receivable or payable totals resulting from derivatives transactions. If the total is a payable amount, the figure is shown in ( ).
42
Differences
Millions of Yen
March 31, 2014 (Unaudited)

Cash and deposits
sheet amount
70,883
943,782
(13,472)
(30,541)
899,768
Total assets
Commercial papers
Bonds payable
Total liabilities
Other:
Fair value
Differences
70,883
927,193
27,425
13,925
984,578
150,679
148,700
47,300
466,934
813,613
13,925
1,012,003
150,679
148,700
48,098
470,206
817,683
27,425
798
3,271
4,070
(49)
(49)
(49)
(49)
209,229


Cash and deposits
Total assets
Commercial papers
Bonds payable*1
Total liabilities
Other:
sheet amount
$ 712,425
8,674,608
(98,916)
(288,866)
8,286,825
Fair value
$ 712,425
Differences
$
8,657,241
370,416
152,916
$9,152,175
$1,430,350
1,662,500
810,833
3,856,816
$7,760,508
152,916
$9,522,591
$1,430,350
1,662,500
818,633
3,891,075
$7,802,558
$370,416
$
7,800
34,250
$ 42,050
$
$
$
$
$
$
(300)
(300)
(300)
(300)
$1,746,841
*1 Current portion of bonds payable is included in bonds payable.

Note 1: Measurement of fair value of financial instruments and matters on securities and derivatives transactions
Assets:
(1) Cash and deposits
The book values are used as the fair values since all the deposits are short-term and the fair values approximate their book values.
(2) Accounts receivable-installment
Fair values of accounts receivable-installment are computed by discounting probable collection amounts of principals and interest by secure interest rates
corresponding to the remaining period.
(3) Investment securities
Fair market values readily available are used as the fair values of available-for-sale securities.
JACCS CO., LTD.
Annual Report 2015
43
Liabilities:
(1) Short-term loans payable
These instruments are settled in a short time and fair value is closely equal to book value. The fair value is, therefore, stated at book value.
(2) Commercial papers
These instruments are settled in a short time and fair value is closely equal to book value. The fair value is, therefore, stated at book value.
(3) Bonds payable
Fair values of bonds payable are measured at market prices.
(4) Long-term loans payable
Book values of long-term loans payable with variable interest rate are deemed fair values as the prices reflect market timely and credit conditions of the
Company have not changed significantly after time of borrowing. Book values of long-term loans payable with fixed interest are computed by discounting
probable payment amounts of principals and interest by expected interest rate of similar borrowing, by group of length of borrowing.
Derivatives transactions:
Contractual values or principal equivalents under the contracts of derivatives transactions as of March 31, 2015 and 2014, accounted for by hedge accounting,
are shown below, by each accounting for hedging activity.
March 31, 2015
Millions of Yen
Accounting for hedging activities
Type of derivatives transactions

Interest rate swap
Payment fixed/Receipt variable
Total
Principle
Hedged items
Contractual value
Total
Over 1 year
Fair value
4,000
4,000
(36)*1
4,000
4,000
(36)
Millions of Yen

Interest rate swap
Total
Principle
Hedged items
Contractual value
Total
Over 1 year
Fair value
4,000
4,000
(49)*1
4,000
4,000
(49)

Interest rate swap
Total
Principle
Hedged items
Contractual value
Total
Over 1 year
Fair value
$33,333
$33,333
$(300)*1
$33,333
$33,333
$(300)
*1 Fair value is based on the price presented by the related financial institutions.
Other:
(Credit guarantee contracts)
Market values of credit guarantee contracts are measured by discounting collectible amounts of guarantee commissions, less uncollectible portion by
subrogation estimated by possibility of guarantee fulfillment and mortgage value, at the secure interest rate corresponding to length of remaining periods.
Note 2: Financial instruments of which fair market values are hardly available are as follows.
Millions of Yen
Description
Unlisted shares
2015
Book value
7,427
2014 (Unaudited)
Book value
2,296
Thousands of
U.S. Dollars
2015 (Unaudited)
Book value
$61,891
Fair values of the above shares without market prices are not represented herein as calculation of their fair values are hardly available. The Company does not book impairment
losses for unlisted shares.
44
JACCS CO., LTD.
Annual Report 2015
Note 3: Maturity of monetary assets after the balance sheet date

March 31, 2015
Cash and deposits
Total
Millions of Yen
Within one year

85,491
339,666
425,157
1 to 2 years
168,895
168,895
2 to 3 years
119,515
119,515
Within one year

70,883
327,937
398,821
1 to 2 years
153,006
153,006
2 to 3 years
109,746
109,746
Within one year

$ 712,425
2,830,550
$3,542,975
1 to 2 years
$
1,407,458
$1,407,458
2 to 3 years
$
995,958
$995,958

Cash and deposits
Total
4 to 5 years
53,111
53,111
Over 5 years
275,043
275,043
4 to 5 years
47,409
47,409
Over 5 years
231,791
231,791
4 to 5 years
$
442,591
$442,591
Over 5 years
$
2,292,025
$2,292,025
Millions of Yen

Cash and deposits
Accounts receivable installment
Total
3 to 4 years
84,722
84,722
3 to 4 years
73,889
73,889
3 to 4 years
$
706,016
$706,016
Note 4: Repayment schedule of bonds payable, long-term loans payable and other interest-bearing liabilities after the balance sheet date
March 31, 2015
Commercial papers
Bonds payable
Total
Millions of Yen
Within one year

171,642
199,500
2,300
106,700
480,143
1 to 2 years
143,426
143,426
2 to 3 years
20,000
73,515
93,515
Within one year

150,679
148,700
86,341
385,720
1 to 2 years
2,300
106,700
109,000
2 to 3 years
143,426
143,426
Within one year

$1,430,350
1,662,500
19,166
889,166
$4,001,191
1 to 2 years
$
1,195,216
$1,195,216
2 to 3 years
$
166,666
612,625
$779,291

Commercial papers
Bonds payable
Total
4 to 5 years
10,000
82,826
92,826
Over 5 years
50,000
19,500
69,500
4 to 5 years
15,000
36,850
51,850
Over 5 years
30,000
29,900
59,900
4 to 5 years
$
83,333
690,216
$773,550
Over 5 years
$
416,666
162,500
$579,166
Millions of Yen

Commercial papers
Bonds payable
Total
3 to 4 years
15,000
36,850
51,850
3 to 4 years
63,715
63,715
3 to 4 years
$
125,000
307,083
$432,083
Investment and Rental Properties

Disclosure has been omitted since this is considered immaterial.
Per Share Information

Yen
2015
Net assets per share
Net income per share
772.67
41.42
U.S. Dollars
2014 (Unaudited)
715.38
37.71
2015 (Unaudited)
$6.43
0.34
Significant Subsequent Events

Not applicable
JACCS CO., LTD.
Annual Report 2015
45
Other Notes
1. Income Taxes
(1) Significant components of deferred tax assets and liabilities as of March 31, 2015 and 2014 are as follows:
Thousands of
U.S. Dollars
Millions of Yen
2015
2014 (Unaudited)
2015 (Unaudited)
Deferred tax assets:

Operating loss carryforwards
Provision for bonuses
Provision for point card certificates
Investment securities
Depreciation
Other
Less amounts offset against deferred tax liabilities
Subtotal
Valuation allowance
Total deferred tax assets
647
854
1,114
37
421
431
661
818
(1,117)
3,871
(1,189)
2,681
625
939
899
31
468
490
579
782
(1,083)
3,733
(1,220)
2,512
$ 5,391
7,116
9,283
308
3,508
3,591
5,508
6,816
(9,308)
32,258
(9,908)
$ 22,341
Deferred tax liabilities:

Net defined benefit asset
Valuation difference on available-for-sale securities
Other
Less amounts offset against deferred tax assets
Total deferred tax liabilities
Net deferred tax assets
(2,115)
(2,696)
(9)
1,117
(3,704)
(1,022)
(1,478)
(1,442)
(0)
1,083
(1,838)
673
$(17,625)
(22,466)
(75)
9,308
$(30,866)
$ 8,516
(2) Revisions to amounts presented for deferred tax assets and liabilities to reflect changes in corporate taxation rates
On March 31, 2015, the Act to Partially Revise the Income Tax Act and Others (Act No. 9 of 2015) and Act to Partially Revise the Local Tax Act and Others
(Act No. 2 of 2015) were promulgated. Under these acts, effective from the fiscal year beginning on or after April 1, 2015, a reduction in the corporate tax
rate and other measures were implemented. Accompanying these changes, the effective statutory tax rate used to calculate deferred tax assets and liabilities
was reduced from the previously used 35.5% to 33.1% for temporary differences expected to be reversed in the fiscal year beginning on April 1, 2015, and
to 32.3% for temporary differences expected to be reversed in the fiscal years beginning on or after April 1, 2016.
Due to these changes in taxation rates, deferred tax assets (after deduction of deferred tax liabilities) increased by 180 million (US$1,500 thousand),
income taxes-deferred increased by 138 million (US$1,150 thousand), valuation difference on available-for-sale securities increased by267 million
(US$2,225 thousand), accumulated adjustments for defined benefit plans increased by 53 million (US$441 thousand), and deferred gains or losses on
hedges decreased by 1 million (US$8 thousand).
2. Retirement Benefits
(1) Overview of the retirement benefit plans adopted
To provide for employee retirement benefits, the Company and its consolidated subsidiaries operate a funded defined-benefit plan and a defined contribution
plan. Under the defined benefit corporate pension plan (fully funded plan), a lump sum or pension are paid in accordance with the employees salary and the
length of service.
46
JACCS CO., LTD.
Annual Report 2015
(2) Defined benefit plans

Movement in retirement benefit obligations, except plan applied simplified method
Millions of Yen
Balance at beginning of fiscal years

Cumulative effects of changes in accounting policies
Restated balance at beginning of fiscal years
Current service cost
Interest cost
Actuarial loss
Benefits paid
Balance at end of fiscal years
2015
19,834
(610)
19,223
1,010
153
173
(618)
19,942
Thousand of U.S. Dollars
2014 (Unaudited)
19,264
1,047
192
85
(756)
19,834
2015 (Unaudited)
$165,283
(5,083)
160,191
8,416
1,275
1,441
(5,150)
$166,183
Movement in plan assets, except plan applied simplified method

Millions of Yen

Expected return on plan assets
Actuarial gain
Contributions paid by the employer
Benefits paid
2015
23,999
479
1,612
996
(618)
26,470
2014 (Unaudited)
22,428
448
810
1,068
(756)
23,999
2015 (Unaudited)
$199,991
3,991
13,433
8,300
(5,150)
$220,583
Movement in liability for retirement benefits of plan applied simplified method

Millions of Yen
2015
Retirement benefit costs
Benefits paid
Contributions paid by the employer
Other
2014 (Unaudited)
24
1
(25)
2015 (Unaudited)
Reconciliation from retirement benefit obligations and net defined benefit liability (asset)
Millions of Yen
Funded retirement benefit obligations

Pension assets
Unfunded retirement benefit obligations
Net defined benefit liability (asset) at end of fiscal years
Liabilities for retirement benefits
Assets for retirement benefits
Net defined benefit liability (asset) at end of fiscal years
2015
19,942
(26,470)
(6,528)
(6,528)
(6,528)
(6,528)
2014 (Unaudited)
19,834
(23,999)
(4,165)
(4,165)
(4,165)
(4,165)
2015 (Unaudited)
$ 166,183
(220,583)
(54,400)
(54,400)
(54,400)
$ (54,400)
Retirement benefit costs

Millions of Yen
2015
Current service cost
Interest cost
Expected return on plan assets
Net actuarial loss amortization
Past service costs amortization
Retirement benefit costs based on the simplified method
Other
Total retirement benefit costs
1,010
153
(479)
(205)
42
521
2014 (Unaudited)
1,047
192
(448)
810
1
30
1,633
JACCS CO., LTD.
2015 (Unaudited)
$ 8,416
1,275
(3,991)
(1,708)
350
$ 4,341
Annual Report 2015
47
Remeasurements of defined benefit plans

The breakdown of items included in remeasurements of defined benefit plans (before tax) is as follows.
Millions of Yen
2015
Past service costs
Actuarial gains and losses
Total balance at end of fiscal years
2014 (Unaudited)
(1,233)
(1,233)
2015 (Unaudited)
$
(10,275)
$(10,275)
Accumulated adjustments of defined benefit plans

The breakdown of items included in accumulated adjustments of defined benefit plans (before tax) is as follows.
Millions of Yen
2015
Past service costs that are yet to be recognized
Actuarial gains and losses that are yet to be recognized
Total balance at end of fiscal years
(1,659)
(1,659)
2014 (Unaudited)

(426)
(426)
2015 (Unaudited)
$
(13,825)
$(13,825)
Plan assets
1. Plan assets comprise:
2015
Bonds
Equity securities
General account
Cash and deposits
Other
Total
2014 (Unaudited)
42%
21%
32%
5%
100%
43%
24%
28%
2%
3%
100%
2. Long-term expected rate of return

Current and target asset allocations, historical and expected returns on various categories of plan assets have been considered in determining the long-term
expected rate of return.
Actuarial assumptions
The principal actuarial assumptions (presented as weighted averages)
2015
Discount rate
Long-term expected rate of return
2014 (Unaudited)
1.2%
2.0%
1.0%
2.0%
(3) Defined contribution plan

The required contribution amount for the Company and its consolidated subsidiaries to the defined contribution plan are 458 million (U.S.$3,816 thousand)
and 458 million for the years ended March 31, 2015 and 2014, respectively.
Notes: Comparative information is not required to be disclosed under Japanese Companies Act, but is disclosed for the convenience of readers.
48
JACCS CO., LTD.
Annual Report 2015
INDEPENDENT AUDITORS REPORT
To the Board of Directors of JACCS Co., Ltd.

We have audited the accompanying consolidated financial statements of JACCS Co., Ltd. (the Company) and its consolidated subsidiaries, which comprise the
consolidated balance sheets as at March 31, 2015, and the consolidated statements of income, statements of changes in net assets and statements of cash flows for
the year then ended, and notes, comprising a summary of significant accounting policies and other explanatory information.
Managements Responsibility for the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with the financial reporting framework
described in the Note Basis of Presenting the Consolidated Financial Statements to the consolidated financial statements; this includes determining that the financial
reporting framework is an acceptable basis for the preparation of the consolidated financial statement in the circumstances, and for such internal control as
management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud
or error.
Auditors Responsibility
Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our audit in accordance with auditing
standards generally accepted in Japan. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable
assurance about whether the consolidated financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures
selected depend on our judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or
error. In making those risk assessments, we consider internal control relevant to the entitys preparation and fair presentation of the consolidated financial statements
in order to design audit procedures that are appropriate in the circumstances, while the objective of the financial statement audit is not for the purpose of expressing
an opinion on the effectiveness of the entitys internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness
of accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company and its consolidated subsidiaries as at
March 31, 2015, and the result of operation and its consolidated cash flows for the year then ended in accordance with the financial reporting framework described in
the Note Basis of Presenting the Consolidated Financial Statements to the consolidated financial statements.
Basis of Accounting
Without modifying our opinion, we draw attention to Note Basis of Presenting the Consolidated Financial Statements to the consolidated financial statements, which
describe the basis of accounting. The consolidated financial statements are prepared to assist the Company to submit to investors of the Company. As a result, the
consolidated financial statements may not be suitable for another purpose.
Other Matter
Our firm and engagement partners have no interest in the Company which should be disclosed pursuant to the provisions of the Certified Public Accountants
Law of Japan.
June 26, 2015

Tokyo, Japan
JACCS CO., LTD.
Annual Report 2015
49
CORPORATE DIRECTORY
(As of July 1, 2015)
Name: JACCS CO., LTD.
The JACCS Services Network

JACCS divides Japan into 8 sales areas, each overseen by a
URL: http://www.jaccs.co.jp/
Hokkaido Area
Tohoku Area
Paid-in Capital:
Kita-Kanto Area
16,138,182,260 (US$134 million)
Shutoken Area
Chubu Area
Registered Head Office:
Kinki Area
2-5, Wakamatsu-cho, Hakodate,
Chugoku-Shikoku Area
Hokkaido 040-0063, Japan
Kyushu Area
Founded: June 29, 1954
branch office. In all, there are 65 JACCS offices nationwide.
C
E
Principal Executive Office:
Ebisu Neonato Bldg.,

1-18, Ebisu 4-chome, Shibuya-ku,
Tokyo 150-8932, Japan

Phone: (03) 5448-1311
Facsimile: (03) 5448-9514
Area Head Offices:
Hokkaido Area:
Urbannet Sapporo Bldg., 5th Floor,
1-2, Kita 1-jo Nishi 6-chome,
Chuo-ku, Sapporo 060-8577
Phone: (011) 241-0811
Tohoku Area:
Sendai MT Bldg., 13th Floor,
2-3, Tsutsuji-ga-oka 4-chome,
Miyagino-ku, Sendai 983-8544
Phone: (022) 292-4475
Chubu Area:
Business Volume:
Nagoya Hirokoji Bldg., 9th Floor,
(Year ended March 31, 2015)
3-1, Sakae 2-chome, Naka-ku,
3,061,297 million (US$25,510 million)
Nagoya 460-0008
Phone: (052) 221-7985
(Year ended March 31, 2015)

Kinki Area:
2,683 (Parent)
Meiji Yasuda Seimei Osaka
3,434 (Consolidated)
Midousuji Bldg., 8th Floor,
Kita-Kanto Area:
Sino Omiya North Wing Bldg.,
18th Floor,
10-16, Sakuragi-cho 1-chome,
Omiya-ku, Saitama 330-9696
Phone: (048) 644-1722
Shutoken Area:
Shin Meguro Tokyu Bldg.,
7th Floor,
25-2, Kami-Osaki 2-chome, Shinagawa-ku,
Tokyo 141-8659
Phone: (03) 5487-4611
1-1 Fushimi 4-chome, Chuo-ku,
Network:
Osaka 541-0044
Branches & Sales Offices: 65
Phone: (06) 6201-6350

Associated Companies:
Chugoku-Shikoku Area:
Domestic:
Asahi Seimei Hiroshima Ebisu-cho Bldg.,
JACCS Total Service Co., Ltd.
9th Floor,
JACCS Lease Co., Ltd.
4-21, Ebisu-cho, Naka-ku,
JACCS Loan-Collection Service Co., Ltd.
Hiroshima 730-0021
JACCS Payment Solutions Co., Ltd.
Phone: (082) 241-9955

Overseas:
Kyushu Area:
Hakata Ekimae Sukuea Bldg., 9th Floor,
JACCS International Vietnam Finance Co., Ltd.
21-28, Hakata-Ekimae 1-chome,
Hakata-ku, Fukuoka 812-0011

Phone: (092) 433-1290
50
JACCS CO., LTD.
Number of Employees:
Annual Report 2015
INVESTOR INFORMATION
(As of March 31, 2015)
Number Of Shareholders:
Principal Shareholders:
5,761
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Shares Outstanding:
175,395,808
Stock Listings:
Tokyo Stock Exchange (First Section)
Sapporo Stock Exchange
20.00%
Japan Trustee Services Bank, Ltd. (Trust Accounts)
8.77
The Dai-ichi Mutual Life Insurance Company, Limited
3.87
Meiji Yasuda Life Insurance Company
3.63
The Master Trust Bank of Japan, Ltd. (Trust Accounts)
3.42
Shareholding Association of JACCS
2.58
JACCS Co., Ltd. Employee Stock Ownership Association
1.96
CBNY-GOVERNMENT OF NORWAY
1.69
Transfer Agent:
Nippon Life Insurance Company
1.67
Mitsubishi UFJ Trust and Banking Corporation
Mitsubishi UFJ Trust and Banking Corporation
1.60
4-5, Marunouchi 1-chome, Chiyoda-ku,
Total
49.25%
Tokyo 100-8212, Japan
Common Stock Price Range:
(Tokyo Stock Exchange)

FY2012
First Quarter
FY2013
High
Low
High
Low
High
Low
310
203
707
433
525
401
Second Quarter
313
227
609
425
661
483
Third Quarter
506
277
528
426
697
506
Fourth Quarter
627
392
533
404
666
534
(Yen)
(Yen)
1,000
23,000
Monthly Range of Stock Price (Left Scale)
Stock Held by Investor Type
FY2014
Other Corporations
3.6%
Securities Companies
0.9%
Overseas
Institutions
16.1%
Individuals and Others

14.0%
Financial Institutions
65.4%
Nikkei 225 Stock Index (Right Scale)
800
20,000
600
17,000
400
14,000
200
11,000
8,000
FY2012
FY2013
FY2014
Cash Dividends:
Yearly
Interim
FY2012
FY2013
FY2014
11.00
14.00
14.00
5.00
6.00
7.00
JACCS CO., LTD.
Annual Report 2015
51
Registered Head Office:

2-5, Wakamatsu-cho, Hakodate,
Hokkaido 040-0063, Japan
Principal Executive Office:
Ebisu Neonato Bldg., 1-18, Ebisu 4-chome,
Shibuya-ku, Tokyo 150-8932, Japan
Printed in Japan

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Annual Report 2015

For the Fiscal Year Ended March 31, 2015

EIGHT-YEAR FINANCIAL SUMMARY

BUSINESS PLANS OF THE PRESENT AND THE PAST

NEW THREE-YEAR MEDIUM-TERM BUSINESS PLAN ACT-

FOUNDERS / BOARD OF DIRECTORS AND AUDIT & SUPERVISORY BOARD MEMBERS

To coincide with the 5th anniversary of

In collaboration with large manufacturers, began

JACCS Founding Philosophy

New Management Principle

Established the Tokyo Office (currently the Tokyo

Began issuing JACCS JCB Card

Established overseas subsidiary JACCS

Shares listed on the Sapporo Securities Exchange

Began operating a state-of-the-art core

Company name was changed to JACCS Co., Ltd.

JACCS became an equity-method affiliate of The

Began issuing internationally accepted credit

Took over the shopping credit business of

JACCS CO., LTD.

Annual Report 2015

EIGHT-YEAR FINANCIAL SUMMARY

Years ended March 31

Summary of operations for the year:

BUSINESS PLANS OF THE PRESENT AND THE PAST

10th Medium-Term Business Plan

Reform of cost structures / enhancement of

Economic and Business Sector Environment

Prolonged appreciation of the yen

Economic slowdown in China and other emerging countries

Deterioration in employment and incomes

Global economic slowdown triggered by the

Underpinned by continued monetary easing, a weakening yen

Tightening of regulation under related laws

European debt crisis

driven by robust economic conditions in the United States, and

JACCS CO., LTD.

Annual Report 2015

Began offering deferred-payment

To commemorate the 60th anniversary of

Began issuing Tametoku10 as an

Announced that Group company JACCS

Entered a business alliance agreement

Entered a business alliance agreement

of the Groups resources

JACCS CO., LTD.

Annual Report 2015

It is with sadness that we announce that two of JACCS founders and

Total Operating Revenue

JACCS CO., LTD.

Annual Report 2015

promotional campaigns. The balance of revolving payments also grew

companys operating performance fell short of initial forecasts.

financial institutionson both loans on deed and card-based loanswas

the previous fiscal year, to 3,061,297 million, surpassing the 3 trillion

robust, and the balance of guarantees surpassed 330,000 million.

In new business, the ATODENE deferred-payment settlement

contracts has risen 600,000 million, attesting to a rapid pace of growth.

service provided by consolidated subsidiary JACCS Payment Solutions

to 108,259 million, and ordinary income decreased 2.3%, to 11,951

companies as part of efforts to expand the number of alliance partners

million. Net income increased 9.3%, to 7,107 million.

and new contracts handled by the service.