Jaccs Ar 2016

Annual Report 2016
For the Fiscal Year Ended March 31, 2016
PROFILE
FINANCIAL AND
NON-FINANCIAL HIGHLIGHTS
JACCS Co., Ltd., is a consumer nance company and a
Total Operating Revenue
member of the Mitsubishi UFJ Financial Group, Inc. (MUFG).

JACCS started out as a provider of monthly installment
credit services for use at department stores in Hakodate,
Increased
Hokkaido, in 1954. Since then, under a founding philosophy
5.0
113.6
billion
that values trust and reliability, JACCS has continued to expand

its business nationwide in Japan and has expanded its business
Ordinary Income
into growth markets in Asia. With a total volume of new contracts

exceeding 3,404 billion, JACCS is one of the leading names
in Japans consumer credit sector.
Increased
JACCS main businesses comprise the credit business,

the credit card business, and the nancing business, which
1.2
12.0
billion
includes credit guarantees and other operations. JACCS

issues standard credit cards under the Visa, MasterCard, and
Net Income Per Share
JCB brands, and has a membership base of approximately

6.8 million cardholders, including those with cards from
afliate partners.
Increased
JACCS launched its overseas operations in 2010 with
6.3
44.02
its entry into the motorcycle sales nance market in Vietnam.

Since then, it has continued to expand its business interests
Energy Consumption
in the Association of Southeast Asian Nations (ASEAN) region.

In 2012, JACCS entered the Indonesian market, and followed
this in May 2016 with its participation in the establishment of
an automobile sales nance joint venture in the Philippines. In
new business, JACCS is aggressively rolling out prepaid card
and deferred-payment settlement services. JACCS operates
in such elds as insurance agency services, leasing services,
and loan servicing.
JACCS continues to grow as it strives to realize its vision
of becoming an innovative consumer nance company with its
roots in Japan, which is articulated in its three-year mediumterm business plan, ACT- .
Reduced
4.7
2,136 kl
crude oil
equivalent
CREATING VALUE
for Our Sustainable Future
Long-Term Vision
Establish JACCS position as a leading brand among
Asian consumer nance companies
Management Principle
JACCS contributes to the realization of a future inspired by dreams and
an afuent society.
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.
JACCS CO., LTD.
Annual Report 2016
CREATING VALUE for Our Sustainable Future
Becoming a Leading Asian Consumer Finance Brand

Entered
Candidates
Our long-term vision under ACT- , our medium-term business plan, is

to establish JACCS position as a leading brand among Asian consumer
Thailand
finance companies.
Philippines
We accordingly look to expand in markets within the ASEAN region.
Cambodia
Our first move in that regard was in 2010, when we entered Vietnams
sales finance market. We have since steadily expanded our business
in that nation through wholly owned consolidated subsidiary JACCS
International Vietnam Finance Co., Ltd. (JIVF). We began operating in
Indonesia in 2012, solidifying our presence through equity-method affiliate
PT Mitra Pinasthika Mustika Finance (MPMF). In May 2016, we set up
MMPC Auto Financial Services Corporation, an equity-method affiliate that
provides captive finance for Mitsubishi Motors vehicles in the Philippines.
JACCS will continue to expand throughout the ASEAN region, and
has plans to launch operations in another two markets by March 2018.
Thailand and Cambodia are the two current candidates in which we are
conducting market research. We would thereby have a presence in five
countries, which equates to half of the ASEAN region.
JACCS CO., LTD.
Annual Report 2016
Indonesia
Vietnam
Number of transactions handled

by ATODENE and revenues
Millions of Yen
500
Thousands of Contracts
1,500
750
250
0
2015
2016
Contracts (Left scale)
2017
Target
Revenues (Right scale)
Our Deferred-Payment Settlement Service

In its FY2015 E-Commerce Market Survey, the Ministry of Economy,
ATODENE Deferred-Payment Settlement System
Trade and Industry estimated that in 2015 Japans e-commerce market

was worth 13.8 trillion. JACCS was the first in Japans shopping credit
Scheme
and credit card industry to begin offering deferred-payment settlement

services, and aims to build its presence in this huge market.
1. Order
User
temporarily cover payments to mail order and online merchants. Users
Member store
3. Shipment of goods
Through our ATODENE deferred-payment settlement service, we

5. Payment
2. Screening
enjoy peace of mind because they can pay for purchases at convenience
Alliances / tie-ups
4. Settlement of payment
stores, banks, and other locations after receiving goods. Merchants benefit
because JACCS assumes the payment risk. ATODENE will also enable us
Settlement service
providers
Major e-commerce
companies
e-commerce support
companies
to cultivate online shoppers who find it stressful paying for purchases with
their credit cards on the Internet or avoid using credit cards altogether.
We are expanding partnerships with settlement service providers
and major e-commerce merchants and support companies. The number
of transactions handled and revenues for the ATODENE service are set to
surge in the fiscal year ending March 31, 2017.
JACCS CO., LTD.
Annual Report 2016
CREATING VALUE for Our Sustainable Future
Building Better Workplaces for Women

It is vital to foster the talents and personal growth of all employees,
managers. We also maintain programs to assist employees with parenting
regardless of gender, to ensure the Companys ongoing development.
and eldercare.
We have thus undertaken various initiatives in recognition of the
In view of the importance of mental and physical well-being in
importance of better leveraging the capabilities of women in all operations
workplaces, we have taken a broad range of steps to maintain the mental
as we expand and diversify our business. We enhance career prospects
and physical well-being of all employees, notably by preventing overwork
for women through job rotations not only for global employees (employees
and offering stress checks and consultations.
recruited on the basis that they may be transferred to any JACCS Group
We also foster understanding of the diverse contributions of women
office globally) but also for regional employees (employees recruited on
in our corporate culture, such as by showcasing their achievements in our
the basis that they will be assigned to work in a specified region). We
in-house newsletter.
offer training programs for women, including one for prospective regional
Comment from female Osaka Customer Center employee presented in our in-house newsletter
An overhaul of our personnel system provided me and other female regional employees with more opportunities to present our
ideas in the workplace because we are no longer under the overall supervision of career-track colleagues. I hope that we women can
increasingly offer our unique perspectives and suggestions, contributing even more to the Companys progress.
JACCS CO., LTD.
Annual Report 2016
CONTENTS
CREATING VALUE FOR OUR SUSTAINABLE FUTURE
NINE-YEAR FINANCIAL SUMMARY
BUSINESS PLANS OF THE PAST AND PRESENT
OPERATIONAL HIGHLIGHTS
TO OUR STAKEHOLDERS
ESG INITIATIVES:
CORPORATE GOVERNANCE
12
CSR ACTIVITIES
16
JACCS GROUP AT A GLANCE
18
REVIEW OF OPERATIONS
20
FINANCIAL INFORMATION
24
ORGANIZATION
60
HISTORY
61
CORPORATE DIRECTORY
62
INVESTOR INFORMATION
63
FORWARD-LOOKING STATEMENTS
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.
JACCS CO., LTD.
Annual Report 2016
NINE-YEAR FINANCIAL SUMMARY

2008
2009
2010
2011
2012
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)
2,387,501
749,720
230,352
603,873
86,418
717,136
107,384
10,972
13,271
6,822
36,236
(4,181)
(61,147)
2,788,607
99,538
3,024,588
97,849
2,827,806
103,273
2,786,288
105,261
2,725,816
111,348
(65.90)
568.30
14.78
558.74
4.00
20.39
589.74
5.00
25.12
601.13
5.00
38.97
636.17
10.00
(0.3)%
(9.5)
3.6
0.2%
2.6
3.2
0.4%
3.6
3.7
0.2%
4.2
3.8
0.5%
6.3
4.1
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
8,419
175,395,808
2,977
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) attributable to owners of the parent
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) basic
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 PAST AND PRESENT

20092011
2012
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
20132015
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 2016
OPERATIONAL
HIGHLIGHTS
Millions of Yen
2013
2014
2015
2016
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
1,026,248
307,767
725,019
79,235
923,028
108,260
11,976
11,951
7,107
(86,682)
(13,943)
115,198
3,404,510
1,127,244
446,153
751,581
77,349
1,002,183
113,673
12,243
12,091
7,569
(144,453)
(8,860)
151,898
2,718,518
117,486
2,896,405
122,712
3,158,045
132,846
3,437,641
133,283
2015
August
* This is a service whereby users can receive benets

simply by paying for goods or services with their credit
card. The credit card company distributes coupons
matching card members tastes based on the members
attributes and their card usage history. Card members
select the coupons they wish to use and activate the
coupons. By doing so, they can use coupons at stores
without actually showing or declaring the coupon at
point of purchase.
September
In an industry rst, JACCS attached Visa

prepaid card functions to the employee
benet and welfare program membership
cards of 3.79 million Benet One Inc.
program members, and redistributed the
cards to members.
2016
February
Entered an agreement with Sojitz Corporation,

Mitsubishi Motors Philippines Corporation,
and BDO Leasing and Finance, Inc., for the
establishment of a joint venture company in
the Philippines. The joint venture will be a
captive nance company specializing in sales
nance for Mitsubishi Motors vehicles.
March
Began issuing dual-interface cards

incorporating JCB Co., Ltd.s J/SpeedyTM
payment service featuring NFC technology
(contactless IC card). It is the rst time this
type of card has been issued to general
cardholders in Japan.
March
In an industry rst, jointly developed with

YAMADA SXL HOME Co., Ltd., a reservefund program for single-dwelling home
repairs. The program utilizes a prepaid card.
March
In cooperation with Don Quijote Co., Ltd.,

began issuing majica donpen card, a credit
card with e-money functions.
March
Produced a television
commercial featuring
professional tennis
player Kei Nishikori.
This marked the fourth
year of JACCS
sponsorship contract
with Nishikori.
Second half
of scal year
ended March
31, 2016
Entered business agreements with FCA

Japan Ltd., Maserati Japan Ltd., McLaren
Automotive, and Volvo Car Japan Ltd. JACCS
will provide a range of loan plans for new
automobile purchases.
Fiscal year
ended March
31, 2016
Cooperation in guarantee operations with

seven regional nancial institutions for
Vacant House Loans. The loans will be
used for demolition and renovation of vacant
houses.
Yen
43.72
678.38
11.00
37.71
715.38
14.00
41.42
772.67
14.00
44.02
772.81
14.00
0.4%
6.7
4.3
0.4%
5.4
4.2
0.4%
5.6
4.2
0.4%
5.7
3.9
7,281
175,395,808
3,096
6,828
175,395,808
3,355
6,726
175,395,808
3,434
6,823
175,395,808
3,710
20162018
ACT-
Commenced the Card Linked Offer* service

after introducing the BIG MINING Private
data management platform developed jointly
by Digital Garage, Inc., and BI.Garage, Inc.
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 2016
TO OUR STAKEHOLDERS
CREATING VALUE
by Continuing Growth
Operating Performance: Growth in Operating Revenue
of new contracts. In cash advances, although we implemented a range of
and Profit
promotional campaigns, the volume of new contracts and the cash advance
In fiscal year ended March 31, 2016, the JACCS Group achieved growth
balance both declined.

In the financing business, the volume of new contracts and the balance
in operating revenue and profit.
of loan guarantees both grew. This reflected a robust performance by credit
In the credit business, the volume of new contracts and operating

revenue increased, driven by strong performances in such categories as
guarantees for personal loanson loans on deed and card-based loans
premium wristwatches and jewelry, and kimono. Housing-related fields
extended by financial institutions, including The Bank of Tokyo-Mitsubishi
home renovation in particularsaw a rebound in the second half of the
UFJ, Ltd. (BTMU), and regional banks.

In new business, there was an expansion in the number of alliance
fiscal year. In auto loans, imported vehicles performed well, leading to
partners for the deferred-payment settlement service ATODENE provided by
increases in the volume of new contracts and operating revenue.
consolidated subsidiary JACCS Payment Solutions Co., Ltd. Consequently, the
In the credit card business, to improve the profitability of cards with
number of transactions handled and the volume of new contracts increased.
high loyalty point reward ratios we overhauled reward ratios, which led to
In overseas business, consolidated subsidiary JACCS International
a slackening in growth in the volume of new contracts. However, through

efficient customer data analysis and the ongoing execution of a variety of
Vietnam Finance Co., Ltd. (JIVF), commenced sales finance operations for
promotional programs, card shopping overall saw an increase in the volume
automobiles and household appliances in the fiscal year under review.
Three-Year Medium-Term Business Plan ACT-

Long-Term Vision
Establish JACCS position as a leading brand among Asian consumer finance companies
Three-Year Medium-Term Business Plan ACT-

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 2016
JIVFs volume of new contracts grew, centering on its motorcycle sales
By implementing a management strategy that focuses on the three
finance operations. JIVF launched credit card operations, achieving sound
core policies of generating Group synergies, innovativeness, and CSR, we
progress as it developed infrastructure for its member acquisition base.
aim to realize our medium- to long-term vision of becoming an innovative
Indonesian finance company PT Mitra Pinasthika Mustika Finance
consumer finance company with its roots in Japan. The overview of the
(MPMF)JACCS equity-method affiliatesaw a decline in the volume
plan is shown on page 8.
of new contracts in its motorcycle and auto sales finance operations,
In the plans initial year, although we achieved a solid performance in
reflecting the impact of a macroeconomic slowdown in Indonesia.
terms of operating revenue, the increase in operating expenses was greater
Uncollected receivables increased, and expenses related to doubtful
than anticipated. In addition, in our overseas business, operating performance
accounts rose.
in our business in Indonesia came in below forecast. As a result of such
As a result of the factors summarized above, on a consolidated basis,

the total volume of new contracts increased 11.2% compared with the
factors, results fell short of our initial forecast.

In response to this situation, we identified reining in the increase in
previous fiscal year, to 3,404,510 million. Total operating revenue rose
operating expenses as an urgent task, and set to work on overhauling the
5.0% compared with the previous fiscal year, to 113,673 million, and
Groups cost structure.
operating income increased 2.2%, to 12,243 million. Net income

attributable to owners of the parent increased 6.5%, to 7,569 million.
Progress on Three-Year Medium-Term Business Plan

ACTFiscal year ended March 31, 2016 was the initial year of our three-year
medium-term business plan, ACT , which runs through fiscal year,
ending March 31, 2018.
Yasuyoshi Itagaki
President, CEO, COO and
Representative Director
JACCS CO., LTD.
Annual Report 2016
TO OUR STAKEHOLDERS
Below is a summary of the results achieved in each of the plans three core
the quality of services provided to customers and member stores, thereby
policies.
contributing to an increase in the volume of new contracts.
1. Expansion of JACCS earnings base through Group synergies

Strengthened cooperation within the MUFG Group and the JACCS Group
Outlook for the Fiscal Year Ending March 31, 2017
Entered the auto sales finance market in the Philippines
I would now like to discuss the operating environment and the measures
Established a new alliance with Jibun Bank Corporation in the housing
to be implemented by the Group during the second year of ACT , fiscal
loan guarantee business

2. The pursuit of innovativeness through strategic utilization of the
Groups resources
year ending March 31, 2017.

In the credit business, overall consumption is expected to see a
long-term leveling off in Japan, owing to such factors as population decline
Launched the Cost Restructuring Committee
and aging, as well as lifestyle diversification. In such a market environment,
Achieved sound progress in the development of the next-generation credit
the JACCS Group will aim for top-line growth through the allocation of
resources to growth markets and entry into new fields. In the shopping
screening engine
Increased the ratio of credit applications received via the Web by
upgrading our lineup of Web-based products
credit business, based on such measures as expansion of Web-based

settlement options and development of new products, the Group will strive
3. The practice of advanced CSR
to create credit and increase its market share. These strategies will focus
Established the Groups Fundamental Corporate Governance Philosophy
on such key product and service categories as housing-related fields,
Formulated the Basic Code for Social Contribution Activities, and began
motorcycles, premium wristwatches and jewelry, kimono, and household
developing a corporate culture in which all officers and employees are
appliances. In housing-related fields, we are focusing on the home renovation
motivated to participate by their own volition
fielda market that is expected to grow. In terms of new fields, JACCS is

developing business infrastructure for lease guarantee operations, and is
The objectives of the information technology (IT) investment strategy under
pursuing entry into the BtoB field. In auto loans, we anticipate a continuation
ACT are to establish competitive advantage, strengthen profitability, and
of the rapid growth achieved in fiscal year ended March 31, 2016. In
improve operational efficiency. In fiscal year ended March 31, 2016, we
particular, the market for imported vehicles has significant potential for
accomplished the following progress.
expansion in the volume of new contracts, and we will aim to increase our
Mission-critical system
market share by building strong partnerships with importers.
Released our next-generation credit screening engine in June 2016

Set October 2016 as the planned release for our back-up center
telecommunications-related companies enter the market. The JACCS Group
Strengthening of Web-related products
will strive to build up its customer base. Specifically, we will focus not only
Further diversified the lineup of payment options available through our
on major retailers but also leverage the Groups nationwide sales network
Web-based credit applications

Set fiscal year ending March 31, 2017 as our target for the development
of an automated system for processing sales data
in Japan to acquire card members through retailers that have a strong

presence in local regions and shopping credit affiliate stores. We will also
work to establish alliances in a wide range of other industries and business
Enhanced usability
categories. Utilizing our strength as an independent credit card issuer
Expanding the introduction of tablet devices centering on major alliance
possessing a diverse array of channels, we intend to expand our portfolio
partners
10
In the credit card market, competition is intensifying as Internet and
of co-branded cards in partnership with Internet-related companies,
Accelerated the development of multi-device capabilities
distribution and retail sector companies, and firms with strengths in local
With these measures we will increase operational efficiency through a
regions. In addition to expanding the Groups customer base through
significant reduction in the time required for credit screening, and improve
alliances, we will also focus on targeting promotional programs at existing
JACCS CO., LTD.
Annual Report 2016
cardholders, including JACCS Loyal Members Program members, as we
works to meet the trust and expectations of its stakeholders while placing
work to increase the volume of new contracts. In addition, we will strive to
a high priority on CSR. To this end, JACCS strives to maintain management
expand sales from Gonna international-brand prepaid cards and Tametoku
soundness and transparency, and strengthen its management control
Prepaid, which includes bill collection and prepaid card functions.
system and audit functions. Hence, we pursue corporate activities that
In the financing business, in credit guarantees for personal loans
comply with social justice.
extended by financial institutions we will work to increase the balance of

guarantees by providing new products and services. In housing loan
Delivering Shareholder Value
guarantees for condominiums purchased for investment purposes, we aim to
JACCS recognizes the maintenance of stable shareholder return as an
secure the top market share by increasing the number of new alliance
important management task. Simultaneously, we recognize the need to
partners and strengthening our relationships with existing partners. In bill
provide return that is in line with operating performance. JACCS fundamental
collection services, we intend to further expand alliance partnerships through
policy is to strengthen its financial base and maintain internal reserves while
the development of cooperative relationships with major real estate firms.
taking into account a comprehensive range of factors when making decisions
In new business, we will aim to increase the volume of new contracts

and operating revenue for the ATODENE deferred-payment settlement
service by expanding alliances and cooperation with business partners.
In overseas business, within the Vietnam business, in addition to
on dividend payments. Such factors include net income performance, the

Groups financial position, and the payout ratio.
The cash dividend applicable to fiscal year ended March 31, 2016
totaled 14.00 per share, including an interim dividend of 7.00 per share.
expansion of motorcycle sales finance operations, we are also working

to expand the business through the introduction of new products, such
Working to Realize Our Vision
as automobile and household appliance sales finance. By expanding the
The JACCS Group is achieving steady growth in its existing business despite
business earnings base driven by an increase in credit card members,
uncertainty in the Japanese economy. In the Groups overseas business,
we will aim for further substantial growth. In Indonesia, we anticipate a
following entry into the Vietnam and Indonesian markets, we have entered
continuation of sluggish economic conditions, and are working to reinforce
the Philippines market as our third overseas initiative. Hence, JACCS is
the business structure. In the Philippines, we will launch operations of the
making progress in the expansion of its business and earnings base. By
joint venture and work to build a position in the market.
continuing such growth and building an appropriate cost structure, we
Based on the measures outlined, in fiscal year ending March 31, 2017,
believe that it will be possible to realize the vision set out in the ACT
we forecast total operating revenue of 120,600 million, operating income of
three-year medium-term business plan of becoming an innovative
13,700 million, and net income attributable to owners of the parent of
consumer finance company with its roots in Japan.
9,000 million.
In these endeavors, we look forward to the continued support and

understanding of our shareholders, investors, customers, partner companies,
Corporate Governance Initiatives
and local communities.
The third core policy of the ACT three-year medium-term business plan
is the practice of advanced CSR, and strengthening the Groups corporate
August 2016
governance system is one of its key tasks. To date, JACCS has worked to
maintain appropriate information disclosure and transparency. However,
in response to the establishment of Japans Corporate Governance Code
in 2015, JACCS newly established the Groups Fundamental Corporate
Governance Philosophy based on its compliance with the Code. As
Yasuyoshi Itagaki
articulated in Article 1, Chapter 1, of the philosophy, the JACCS Group
President, CEO, COO and Representative Director
JACCS CO., LTD.
Annual Report 2016
11
ESG Initiatives: Corporate Governance
Board of Directors
(As of June 29, 2016)
A
President, CEO, COO

and Representative Director
Yasuyoshi Itagaki
Deputy President, CFO and
Tsutomu Sugiyama
Director and Senior Managing

Executive Officer
Hidechika Kobayashi
Business Strategy
Directors and Managing

Executive Officers
Noboru Kawakami
Compliance, General Affairs, Personnel,
Credit Management
Minekazu Sugano
Accounting, Finance, Information
Systems
Kojun Sato
International Business, Group Strategic
Business
Senior Adviser
Naoe Sugimoto
12
JACCS CO., LTD. Annual Report 2016
Directors and Senior

Executive Officers
Shigeki Ogata
Credit Screening and Operation
Toru Yamazaki
Corporate Planning
Haruo Kamioka*
Kuniaki Hara*
* Outside Directors
Executive Officers
(As of June 29, 2016)
Audit & Supervisory Board Members

(As of June 29, 2016)
Audit & Supervisory Board Members

Takayuki Hiroi (Full-time)
Atsushi Hazawa (Full-time)
Satoru Fujimura*
Shinji Murakami*
* Outside Audit & Supervisory Board members
Fundamental Corporate Governance Philosophy

The JACCS Group works to meet the trust and expectations of its stakeholders.
Simultaneously, the Group pursues management that has a strong focus
on CSR. To this end, the Company aims to enhance its management
soundness and transparency, and strengthen its management control
systems and audit functions. The Company pursues corporate activities
that comply with social justice.

Based on JACCS founding philosophy of Trust is the basis for all,
the Company believes that the trust and reliability of its stakeholders is
paramount, and strives to grow based on this philosophy. The Company
carries out its business operations with the aim of realizing its management
principle of JACCS contributes to the realization of a future inspired by
dreams and an affluent society. In addition, the Company formulated its
long-term vision and three-year medium-term business plan. As well as
working to ensure that this vision and business plan are assimilated by all
Managing Executive Officer

Hitoshi Chino
Executive Officers
Masayuki Nemoto
Business Strategy
Kyushu Area
Senior Executive Officers

Hideo Yoshino
Shingo Yuzue
International Business Planning
Housing Loan Guarantee, Business

Strategy
Kenichi Oshima
Masatoshi Kishi
Information Systems
Kita-Kanto Area
Takahiro Nagoshi
Kazuo Yamamoto
International Business Planning
Chugoku-Shikoku Area
Akira Kuzukami
Noboru Taniguchi
Kinki Area
Credit Management
Toshio Sotoguchi
Toshiyuki Hijikata
Shutoken Area
Compliance
Masahiro Hasukawa
Hiroki Yoshida
Credit Management
Tohoku Area
Masami Odagiri
Takeshi Yoshikawa
General Affairs, Personnel
Auto Loans, Business Strategy
Ryo Murakami
Keigo Abo
Chubu Area
Credit Card Promotion,

Business Strategy
Takashi Saitou
Audit
Toshiya Kaname
PT Mitra Pinasthika Mustika Finance
(Indonesia)
Terukazu Shimokawa
Credit Screening and Operation
Toshikazu Kondo
Shopping Credit Promotion,
Business Strategy
Takahiro Maeda
Hokkaido Area
Kazuhiko Segawa
Corporate Planning
officers and employees of the JACCS Group, we strive to accomplish the

goals of this vision and business plan.

The JACCS Group has defined its fundamental corporate governance
philosophy, and formulated its basic policy relating to the framework and
operation of corporate governance. The Company has disclosed these policies.
Corporate Governance Structure

The Company has established the Audit & Supervisory Board to ensure that
the Board of Directors carries out appropriate decision-making and supervisory
functions, as well as ensure that Audit & Supervisory Board members, who
are appointed on an individual basis, appropriately carry out their audit
functions. Through the strengthening of the functions of both the Board
of Directors and the Audit & Supervisory Board, the Company is working
to enhance corporate governance. The Company has established a system
of executive officers, thereby clarifying the division of roles in the execution
JACCS CO., LTD. Annual Report 2016
13
of operations, delegating authority, and ensuring expeditious execution of

operations. Furthermore, the Company aims to realize effective and transparent
corporate governance. Specically, it has established the Nominations
Advisory Committee and the Remuneration Advisory Committee as advisory
bodies to the Board of Directors, and the Corporate Governance Committee
as a body reporting directly to the Board of Directors.
Executive ofcers hold responsibility and authority for the execution
of operations. Executive ofcers comprise the CEO, COO, CFO, executive
ofcers responsible for supervising specic functions, and executive ofcers.
Executive ofcers are appointed through resolution of the Board of Directors.
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 Company has established an Audit Ofce, which reports directly to the
CEO, as an independent internal audit unit. The Audit Ofce considers and
evaluates the effectiveness of business risk management control and
governance processes for the overall operations of each JACCS Group
business site. The Audit Ofce carries out internal audit operations based
on the Fundamental Policy relating to the Internal Control System, etc.
Board of 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 Board of Directors shall comprise at least three but no more
than 12 members. Of those, at least two members shall be independent
outside directors.
Accounting Auditor
With regard to accounting auditing, the Company has entered into an audit
contract with KPMG AZSA LLC.
Committees
Nominations Advisory Committee
The Company has voluntarily established the Nominations Advisory Committee
as an advisory body to the Board of Directors. This committee considers and
debates nomination and dismissal proposals for directors and executive
ofcers responsible for supervising specic functions. The committee reports
its ndings to the Board of Directors. The committee also considers and
debates the content of the Standards for the Independence of Outside
Ofcers, and reports its ndings to the Board of Directors. The committee
includes outside directors as members, and ensures objectivity and
transparency are maintained.
Remuneration Advisory Committee
The Company has voluntarily established the Remuneration Advisory
Committee as an advisory body to the Board of Directors. The committee
considers and debates the performance of directors and executive ofcers
responsible for supervising specic functions and the content of their
remuneration, and reports its ndings to the Board of Directors. The
Audit & Supervisory Board Members and the Audit & Supervisory Board
As independent ofcers functioning under a mandate from the General
Meeting of Shareholders, the Audit & Supervisory Board members audit the
directors execution of duties and have the role of carrying out a supervisory
function over the Company in cooperation with the Board of Directors. 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.
Corporate Governance Structure

General Meeting of Shareholders
Election / Dismissal
Reporting
Corporate Governance Committee
Compliance Committee
Internal Control Committee
Product & Operational Risk
Committee
Board of Directors
President, CEO and COO
Management
Committee
Reporting
Nominations Advisory
Committee
Remuneration Advisory
Committee
Operational
Audit
Audit & Supervisory Board
Cooperation
Accounting Auditor
Accounting
Audit
Cooperation
Audit Ofce
Personal Information
Protection Committee
14
JACCS CO., LTD.
Annual Report 2016
Individual Departments
Directors, Executive Ofcers, Others
committee includes outside directors as members, and ensures objectivity

and transparency are maintained.
Corporate Governance Committee
The Company has established the Corporate Governance Committee as a
body reporting directly to the Board of Directors. The Committee considers
and debates matters relating to the following, and reports its ndings to the
Board of Directors.
Enterprise risk management (ERM) for the JACCS Group
JACCS Group compliance and the internal control situation
Evaluation of the activities of such committees as the Compliance
Committee, Internal Control Committee, and Personal Information
Protection Committee, as well as review of important matters handled
by these committees
The Corporate Governance Committee includes outside directors as
members, and maintains effectiveness.
Outside Directors and Outside Audit & Supervisory

Board Members
The Company has appointed two outside directors and two outside Audit &
Supervisory Board members.
Based on the Companies Act and stipulations by stock exchanges
regarding the independence of outside directors and outside Audit &
Supervisory Board members, the Company has established the following
as its Standards for the Independence of Outside Ofcers. If none of the
following stipulations apply to an outside ofcer, the ofcer is judged to
have independence.
Standard for Independence of Outside Directors
1. A party with a material trading relationship with the Company, or an
executive for such a party
2. A party that belongs to an organization that receives a large consulting fee
from the Company in relation to accounting or legal consulting services,
excluding ofcer remuneration
3. A major shareholder owning 5% or greater of the voting rights of the
Company, or an executive of such a corporate body
4. A party who is related to a JACCS Group director, Audit & Supervisory Board
member, or executive ofcer, etc., up to the second degree (e.g., spouse,
parent, child, sibling, grandparent, or any such relatives spouse), or related
to the second degree to any party fullling stipulations 13 above
5. A party who has held the appointment of outside ofcer for a long period
Compensation of Officers
Ofcer category
Directors (excluding
outside directors)
Audit & Supervisory
Board members
(excluding outside
Audit & Supervisory
Board members)
Outside ofcers
Total compensation
(millions of
yen)
Total compensation by type (millions of yen) Number of

directors
or Audit &
Basic
Stock
Retirement
SupervicompensaBonuses
options
allowance
sory Board
tion
members
275
231
43
__
__
42
42
__
__
__
22
22
__
__
__
Internal Control and Compliance Structure

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
Message from Independent Outside Director

The enactment of Japans Corporate
Governance Code in June 2015 prompted
Japanese corporations to review their
corporate governance systems. JACCS was
no exception, and the Company formulated
its Fundamental Corporate Governance
Philosophy after evaluating its approach.
JACCS previously appointed several
independent outside directors to stimulate Independent Outside
Director
deliberations in Board of Directors and
Haruo Kamioka
other meetings. The independent outside
directors helped to draft and adopt this
fundamental philosophy.
JACCS established the Corporate Governance Committee,
Nominations Advisory Committee, and Remuneration Advisory Committee
as directly controlled or advisory bodies for the Board of Directors. Outside
directors are members of all of these committees to enhance
management soundness and transparency.
I will continue to express my opinions and advise as an independent
outside director in Board of Directors and other meetings to contribute to
the sustainable growth and development of the JACCS Group and to help
enhance its medium- and long-term corporate value. I will also oversee
business implementation by other directors and participate in decisionmaking for important policies.
specialist organizational units responsible for each of these functions.

On March 18, 2016, the Board of Directors passed a resolution
regarding an amendment to its Fundamental Policy relating to the Internal
Control System. This amendment was applied on April 1, 2016.
Information Disclosure System

The Company believes that a proactive stance toward disclosure serves
to increase the trust of stakeholders, and is essential for maintaining
management accountability. To this end, the Company formulated a
Disclosure Policy, and carries out disclosure so that stakeholders can
be cognizant of important information quickly, correctly, and fairly.
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 29, 2016 was dispatched on June 7, 2016. To promote the exercise
of voting rights, the Company participates in an electronic voting platform.
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 for analysts and institutional investors, shareholders newsletters,
English-language annual report, and other materials on its website.
http://www.jaccs.co.jp/corporate/ir/
A dedicated IR manager is appointed within the Public Relations
Section of the Corporate Planning Department.
JACCS CO., LTD.
Annual Report 2016
15
ESG INITIATIVES: 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.
Below is an introduction to the Groups CSR activities
in and after scal year ended March 31, 2016
Social Contribution Activities

Donations to support those affected by the Kumamoto earthquakes
Social Contribution through the Groups Business

Activities
To support the regions and people affected by the April 2016 Kumamoto
Issuing of credit cards that contribute to society
earthquakes, JACCS made a donation of 3 million to Kumamoto Prefecture.
As part of JACCS efforts to contribute to society through its business
In addition, JACCS made a donation matching the total donations by all
activities, the Company issues credit cards that provide a charitable donation
ofcers and employees of the Group. A total of 1,037 JACCS Group ofcers
based on usage. A certain percentage of the cards total annual purchase
and employees made donations totaling 1,951,226. JACCS matched and
amount is donated to a specied charitable organization or local community
slightly topped up this gure, for a total donation of 4 million, which was
organization. JACCS fully incurs the amount that is donated to charity, and
made to Japan Platform (JPF), a non-prot organization.
no monetary cost is borne by the cardholder. The aim is to support efforts to

revitalize local economies as well as raise awareness of the importance of
Sending wooden building blocks to the children of Hakodate, JACCS
making a social contribution.

In scal year ended March 31, 2016, the Japan Guide Dog
founding city
In scal year ended March 31, 2016, JACCS implemented a volunteer
Association Card issued by JACCS raised approximately 2.27 million
program to make and distribute childrens wooden building blocks. The
through various programs, which was donated to the Japan Guide Dog
blocks are made using lumber sourced from projects to thin forests for the
Association (JGDA).
purpose of forest maintenance and sustainability. Volunteer programs were

run at business sites throughout Japan, with a total of 718 people
participating. The wooden building blocks produced through the program
were donated to 35 preschools in Hakodate. The blocks are being used as toys
by the children who attend these preschools, who can enjoy the uniquely
warm feel of wood.
Programs for Customers

Protecting customers personal data
In scal year ended March 31, 2016, to expand and enhance the content of
personal data protection training programs attended by all JACCS employees,
we produced an original e-learning program adapted to suit the needs of the
Companys operations, and distributed the program materials. This personal
data protection program was implemented vis--vis all employees of the
16
JACCS CO., LTD.
Annual Report 2016
Group. In addition, 137 JACCS employees passed the qualication test for
Managers Handling Personal Information. This qualication is managed by
the Japan Consumer Credit Association, which is an Authorized Personal
Information Protection Organization recognized by Japanese government
agencies. Currently, over 90% of JACCS employees have qualications
relating to personal information management. Furthermore, 79 JACCS
employees passed the qualication test for Information Security (Managers
and Elementary Level), which is run by the Japan Association for Information
Learning. As a result, a total of 281 employees hold qualications relating to
Average monthly overtime in scal year ended March 31, 2016

(time in excess of over 8 hours per day)
information security. The Company implements training programscovering
Global employees
20.2 hours
all employeeson personal information protection on an ongoing basis, and
Regional employees
is committed to further enhancing appropriate protection of customers
Total for regular, full-time employees
7.9 hours
13.1 hours
personal information, credit card numbers, and other data.

3. Ratio of female employees among management-level employees
Environmental Conservation
Reducing energy consumption
As a corporation governed by the revised Act on the Rational Use of Energy,
the Company has set a target of reducing energy consumption by at least 1%
annually, and takes a proactive stance on energy savings. In scal year ended
(section manager level or higher) (regular, full-time employees)

Managers at section manager level or higher: 2.2%
(six employees as of April 1, 2016)
Global employees
Regional employees
March 31, 2016, JACCS energy savings were equivalent to 2,136 kl of crude
oil, and energy consumption was 4.7% lower than scal year ended March 31,
2015. We will continue to pursue our annual target of a reduction in energy
consumption of at least 1%, and are implementing a range of measures to
reduce electricity and other energy usage.
Programs for Employees

Helping female employees reach their potential
For JACCS, assisting female employees to reach their potential is a key task
for management. By supporting employees through a diverse array of working
styles and expanding related programs, JACCS is striving to develop a work
environment that will enable women to play a greater role in the Company
including helping them to achieve a balance between work and home
lifeand is building a human resources system to make this goal a reality.
Child-rearing assistance programs

JACCS promotes the use of programs to support employees who are raising
a family. Specically, we are working to increase understanding and
awareness of maternity and paternity leave programs, and other programs
to assist in child-rearing, and make such programs as user-friendly as
Situation in fiscal year ended March 31, 2016

1. Ratio of female recruits among all regular, full-time employees
recruited
possible. In scal year ended March 31, 2016, to promote the use of
child-rearing leave programs, we set specic targets, and simultaneously
implemented measures aimed at making these programs easier to use.
Female employees accounted for 32.3% of employees recruited on the

basis that they may be transferred to any JACCS Group ofce globally
(global employees; new graduate recruits employed in April 2016).
Targets and results in scal year ended March 31, 2016 for programs to
promote the use of child-rearing leave programs
Targets
Results
At least 95%
100%
At least ve
employees
11 employees
Female employees accounted for 100% of employees recruited on the

basis that they will be assigned to work in a specied region (regional
employees; new graduate recruits employed in April 2016).
2. Status of working hours, including average monthly overtime
Ratio for female employees

Ratio for male employees
(regular, full-time employees)

JACCS CO., LTD.
Annual Report 2016
17
JACCS GROUP
AT A GLANCE
See
Page 20
See
Page 1
Long-Term Vision
See
Page 8
See
Page 1
Three-Year Medium-Term
Business Plan ACT-
Founding
Philosophy
Management
Principle
Credit
Business
Shopping Credits
Auto Loans
Lease Guarantees
Credit Card
Business
Credit Cards
Cash Advances
Revolving Payment Services
Prepaid Cards
Financing
Business
Personal Loan Guarantees
for Financial Institutions
Housing Loan Guarantees
Bill Collection Services
JACCS Co., Ltd.

JACCS Loan-Collection Service Co., Ltd.
JACCS Total Service Co., Ltd.
JACCS Lease Co., Ltd.
JACCS Payment Solutions Co., Ltd.
Overseas
Business
Sales Finance
Unsecured Loans
Credit Cards
JACCS International Vietnam Finance Co., Ltd.
MUFG
See
Page 3
New
Business
The Bank of TokyoMitsubishi UFJ, Ltd.

See
Page 12
ESG
Compliance
Corporate Governance
See
Page 4
Social Contribution
Diversity
18
JACCS CO., LTD.
Annual Report 2016
Deferred-Payment
Settlement Service
Member Stores / Alliances

Retailers
Real Estate Companies
Department Stores
Fitness Clubs
Chain Stores
Settlement Service Providers
Vehicle Dealerships
E-Commerce Companies
House Manufacturers
E-Commerce Support Companies
Universities / Vocational Schools
Regional Financial Institurions
Japan Market
See
Page 2
ASEAN Market
Customers
JACCS International Vietnam

Finance Co., Ltd.
PT Mitra Pinasthika Mustika
Finance
MMPC Auto Financial Services
Corporation
Local Communities
Global Environment
JACCS CO., LTD.
Annual Report 2016
19
Credit Business
Kimono, Premium Wristwatches and Jewelry, Home Renovation,

and Auto Loans Remained Robust
Overview
Major product and service categories for JACCS shopping credit include home renovation and other housing-related
fields, motorcycles, premium wristwatches and jewelry, kimono, and household appliances and electronics. JACCS also
Operating Revenue
in Shopping Credits
(Non-Consolidated)
supports consumers at a variety of life stages, in such areas as education, bridal, and healthcare services. Through
23.5
such innovations as WeBBya suite of Web-based in-store credit application servicesJACCS provides products that
Billions of Yen
respond to changing market needs. In auto loans, by pursuing captive-finance business opportunities and alliances with
auto dealers, JACCS supports a broad range of vehicle purchases, from new domestic-brand vehicles and imported
vehicles to used vehicles.
Operating Performance (Non-Consolidated)
2014
2015
2016
In shopping credits, the volume of new contracts increased, mainly driven by expansion in such business categories as
kimono, premium wristwatches and jewelry, and housing-related fields (home renovation). Operating revenue grew, reflecting
an increase in the volume of new contracts for installment sales finance and a reversal of deferred installment income.
In auto loans, the volume of new contracts grew, reflecting strong contract volume through imported-vehicle dealerships
Operating Revenue
in Auto Loans
(Non-Consolidated)
and dealers specializing in used vehicles. Operating revenue steadily rose, driven by a higher volume of new contracts.
18.6
Strategy under ACT-
Billions of Yen
In shopping credits, in such key categories as kimono, premium wristwatches and jewelry, and housing-related fields, JACCS
is working to realize further growth through the expansion of its Web-based payment menu, the creation of credit driven
by the development of new products, and an increase in market share. In housing-related fields, JACCS is focusing on the
home renovation category, which is expected to see market expansion. JACCS is developing business relationships with
2014
2015
2016
house manufacturers and house builders based on composite proposals involving diverse products.
In auto loans, JACCS is establishing its position in the imported vehicles market by building a captive-finance base
and developing a precise support system for each importer. In relation to specialized used-vehicle dealers, JACCS is
Volume of New Contracts of

Web-Based Products
working to expand its market share through strengthened relationships with major used-vehicle sales networks and by
developing business with used-vehicle dealerships that have close ties to local communities. JACCS is also promoting
(Non-Consolidated)
(Billions of Yen)
60
the use of its WeBBy Auto Web-based loan application service.
Key Initiatives
Expansion and Acceleration of Home Renovation Loans
As the volume of new contracts for housing-related products increased, in the fiscal year ended March 31, 2016,
2014
2015
2016
the volume of new contracts for home renovation loans exceeded that for solar power generation system loans.
Increase in the Volume of New Contracts from Imported-Vehicle Dealerships and Specialized UsedVehicle Dealers
JACCS pursued alliances with imported-vehicle manufacturers, signing
Volume of New Contracts of

WeBBy Auto
(Non-Consolidated)
business agreements with FCA Japan Ltd., Maserati Japan Ltd.,
(Billions of Yen)
120
McLaren Automotive, and Volvo Car Japan Ltd. JACCS also aggressively
implemented a range of measures targeting specialized used-vehicle
dealers. The volume of new contracts grew steadilyimported-vehicle
dealerships saw a 20.8% increase compared with the previous fiscal
year, while used-vehicle dealers recorded a 9.3% increase.
20
JACCS CO., LTD.
Annual Report 2016
2014
2015
2016
Credit Card Business
Rise in Volume of New Contracts Driven by Increase in the Number of

Active Cardholders and Higher Average Usage Amount per Cardholder
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
(Non-Consolidated)
status as an independent credit card issuer not affiliated with any particular retail groupwe focus on enhancing the value-
32.1
added of co-branded cards. We are also promoting increased cardholder use of revolving payment services. Furthermore,
Billions of Yen
JACCS is working to increase sales of prepaid cards as a means of expanding the scope of its credit card business.

The total number of members increased for the first time in six years, driven by growth in the number of new members.
The number of active cardholders increased, driven by a range of promotional campaigns. The volume of new contracts
2014
2015
2016
grew as the number of active cardholders increased and average usage amount per cardholder rose, underpinned by an
expansion in the variety of card usage scenarios and various promotional programs. Operating revenue increased, driven
Operating Revenue in Credit Card

Business for Cash Advances
by a higher volume of new contracts and a rise in the balance of revolving payments.
In cash advances, although JACCS ran a variety of promotional campaigns, the volume of new contracts from cash
advances decreased. Operating revenue from cash advances also declined, reflecting a lower volume of new contracts
(Non-Consolidated)
and a decrease in the balance of cash advances.
11.2
Billions of Yen
Strategy under ACTWe are pursuing an expansion of our customer base through an increase in new alliance partners and revitalization
of existing partnerships. In co-branded cards, we are promoting alliances with online business-related partners and
2014
companies in the retail sector. We are also emphasizing alliances with strong, regionally based companies. With our
2015
2016
existing alliance partners, we are working to stimulate increases in membership numbers through brand relaunches
and by offering a greater range of add-on services. By executing a range of promotional programs that utilize big data,
Number and Ratio of

Active Cardholders
we aim to expand the volume of new contracts by JACCS Loyal Members Program members, whose average usage
amount is high. We will also work to increase the balance of revolving payments through various promotional programs.
In addition, we are striving to increase sales from Gonna international-brand prepaid cards, and Tametoku Prepaid,
Number of Active Cardholders

Ratio of Active Cardholders
which includes bill collection and prepaid card functions.
346
Tens of Thousands
50.7 %
Key Initiatives
New Co-Branded Cards
2014
majica donpen card
2015
2016
Members earn Don Quijote loyalty points no matter where they shop with this card, which also includes e-money functions.
Revitalization of Existing Partnerships

Joshin Credit & Loyalty Point Card
We promoted new membership by expanding the long-term free-of-charge repair warrantee program with this electronics retailer.
Prepaid Card Initiatives
majica donpen card
Joshin Credit &
Employee benefit and welfare program membership cards that double as Gonna prepaid cards
Loyalty Point Card
Provided cards with Visa prepaid card functions attached as employee identification cards of client companies of Benefit
One Inc., a provider of employee benefit and welfare services.
Employee identification card
Tametoku Prepaid
issued by Benefit One
Adopted as a prepaid card for use by home-buyer customers of YAMADA SXL HOME Co., Ltd., this card is to be used
within a reserve-fund program for home repairs, and includes a service whereby funds are automatically transferred from the
SxL Smiling Club
members bank account to replenish the cards balance.
S-members card
JACCS CO., LTD.
Annual Report 2016
21
Financing Business
Substantially Expanded the Balance of Credit Guarantees

for Personal Loans Extended by Financial Institutions
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
Revenue from Guarantees

for Personal Bank Loans
(Non-Consolidated)
guarantees on apartments purchased for investment purposes. JACCS conducts this business specifically in Tokyo,
4.0
Billions of Yen
Osaka, and Fukuoka, where apartments have sound rental income-earning potential.

In personal loan guarantees for financial institutions, the balance of loan guarantees grew significantly, 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 an increase in the volume of new contracts and solid
2014
2015
2016
growth in the number of invoices handled.
Strategy under ACTWe are implementing measures aimed at realizing sustainable growth of the credit guarantee business and further
developing the bill collection services market. In personal loan guarantees for financial institutions, we are working
Revenue from
Guarantees for Housing
Loans
to further expand the balance of loan guarantees by providing new products and services that satisfy the needs of
customers. Simultaneously, JACCS aims to develop new business domains underpinned by the introduction of a Web-
(Non-Consolidated)
15.6
based loan screening system.
Billions of Yen
In housing loan guarantees, JACCS is working to secure the top market share by expanding the number of new
alliance partners, developing new products to meet market needs, and strengthening relationships with alliance partners.
In bill collection services, JACCS is working to further expand alliance partnerships through acceleration of new alliances
with major real estate firms and developing new collaborative partnerships.
2014
2015
2016
Key Initiatives
Cooperation with Regional Banks in Guarantee Operations for Vacant House Loans
We are cooperating with seven regional financial institutions to help broadly address the problem of vacant houses, which
has become a social issue for Japan in recent years. The guarantees will apply to loan products used for demolition and
Revenue from
Bill Collection Services
renovation of vacant houses. The participating institutions are Tomato Bank Ltd., Aomori Bank, Ltd., Fukuoka Chuo Bank,
2.7
Ltd., Mishima Shinkin Bank, Bank of Iwate, Ltd., Mie Bank Ltd., and Enshu Shinkin Bank.
Billions of Yen
Began Provision of a Settlement Package Service

JACCS and PAYGENT Co., Ltd., have formed a business alliance, and have begun providing a settlement package service
under which expenses may be paid by credit card. These include key and deposit money required when entering a
residential lease contract, monthly rent payments, building
management expenses, and expenses incurred when terminating
a residential lease.
22
JACCS CO., LTD.
Annual Report 2016
2014
2015
2016
Overseas Business
Vietnam Business Performing Soundly; Market Entry

in the Philippines
Overview
JACCS is currently developing businesses in Vietnam and Indonesia. In Vietnam, which JACCS entered in 2010, the Company
Operating Revenue
in Vietnam
began by offering motorcycle sales finance services and has steadily expanded operations since then. This includes the provision
(Years ended December 31)
of auto sales finance, unsecured loans, and becoming the first Japanese credit card issuer in Vietnam. In Indonesia, JACCS
1,312
entered the motorcycle sales finance business in 2012, and in 2014, entered the auto sales finance business. We aim to
Millions of Yen
continue expanding operations in the ASEAN region.

In Vietnam, consolidated subsidiary JACCS International Vietnam Finance Co., Ltd. (JIVF), steadily grew its business,
achieving an increase in income before income taxes on a consecutive basis.
2013
2014
2015
In Indonesia, equity-method affiliate PT Mitra Pinasthika Mustika Finance (MPMF) worked to expand its operations.
However, owing to the impact of a slowdown in economic growth, expenses related to doubtful accounts rose, and
Number of Member Stores

in Vietnam
income after income taxes fell short of the initial forecast.

In the Philippines, JACCS established joint venture MMPC Auto Financial Services Corporation together with Sojitz
Corporation, Mitsubishi Motors Philippines Corporation, and BDO Leasing and Finance, Inc.
Strategy under ACT684
JACCS intends to expand its business through the launch of new products, by strengthening support from Japan, and by
entering new markets.
In Vietnam, we are reinforcing the base of motorcycle sales finance operations by expanding the number of member
stores, working to increase the volume of new contracts through such new products as auto sales finance and household
appliance sales finance, and strengthening the earnings base of the credit card business by significantly expanding the
2013
2014
2015
number of cardholders.
In Indonesia, we are focusing on strengthening the management structure and working to reinforce the receivables
management system and corporate governance system through the provision of management know-how from Japan.
In the Philippines, through MMPC Auto Financial Services, we are aiming to launch operations in the first half of
Operating Revenue
in Indonesia
fiscal year ending March 31, 2017 and establish a position in the Philippines auto sales finance market.
10,272
Key Initiative
Millions of Yen
Expansion of Credit Card Members in Vietnam

Consolidated subsidiary JIVF entered the credit card market in the fiscal year ended December 31, 2014. The company
has steadily expanded its credit card membership, mainly through customers initially acquired in its loan operations. In
the fiscal year ended December 31, 2015, the number of credit card members reached 10,000. Through continued
2014
2015
programs to promote the acquisition of new credit card members, JIVF expects to grow credit card membership to
60,000 by the end of the fiscal year ending December 31, 2016.
JACCS CO., LTD.
Annual Report 2016
23
FINANCIAL INFORMATION
MESSAGE FROM THE CHIEF FINANCIAL OFFICER
25
MANAGEMENTS DISCUSSION AND ANALYSIS
26
BUSINESS RISKS
30
CONSOLIDATED BALANCE SHEETS
32
CONSOLIDATED STATEMENTS OF INCOME
34
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME 35
24
CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS
36
CONSOLIDATED STATEMENTS OF CASH FLOWS
38
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
39
INDEPENDENT AUDITORS REPORT
58
JACCS CO., LTD.
Annual Report 2016
MESSAGE FROM THE CHIEF FINANCIAL OFFICER
Tsutomu Sugiyama
Deputy President, CFO and
Interest-bearing liabilities exceeded 1 trillion, as assets increased with business expansion. We will
strengthen financial management to match stakeholder expectations by building a solid financial position
to support top-line growth and optimize Group synergies.
Fundraising
ROE Improvements
Core policies that we deployed under ACT- , our three-year medium-term
One key policy under ACT- is to engage in advanced CSR practices. We
business plan, are to expand JACCS earnings base through Group synergies
aim to improve ROE, as we consider it important to pursue shareholder- and
and pursue innovativeness through strategic utilization of the Groups resources.
investor-oriented goals to keep meeting the expectations of all stakeholders.
Our basic policy in fundraising is to harness asset liability management

to reinforce our financial structure and manage risks. Under ACT- , we are
We seek to enhance ROE by increasing earnings, and will also reform our
cost structure to elevate the top line and margins.
also reinforcing sales support in this area.

Fundraising is vital to JACCS as a financial institution. As well as
Shareholder Returns
benefiting from shareholders and other investors, we obtain stable funding
Ensuring stable shareholder returns is a top management priority. At the
leveraging relationships that we have built with numerous financial institutions
same time, we need to align these returns with performance. Our basic policy
over more than 60 years and our creditworthiness as part of MUFG to borrow
on profit distribution is thus to strengthen our financial position and maintain
from diverse institutions, issue bonds and commercial paper, and undertake
sufficient internal reserves while paying dividends after comprehensively
affiliated loans.
evaluating net income attributable to owners of the parent, prospects,
In the years ahead, we will endeavor to optimize our funding mix to
financial standing, and payout ratio, and other factors.
reinforce sales support, closely monitoring the risks of interest rate rises
and accommodating a deregulated financial climate.
JACCS CO., LTD.
Annual Report 2016
25

Analysis of Operating Performance
Composition of Total Volume

of New Contracts (%)
Other Operations
29.4%
Overview
In fiscal year ended March 31, 2016, JACCS launched its new three-year medium-term business plan,
Credit Card
33.1%
ACT- . The plan continues the medium- to long-term vision set out in the Companys previous mediumterm business plan, ACT11 of becoming an innovative consumer finance company with its roots in
Japan. JACCS worked to realize this six-year vision by implementing management strategies based on
Financing
2.3%
Credit Guarantee
22.1%
the three core policies of generating Group synergies, innovativeness, and CSR.
Installment Sales
Finance
13.1%
As a result, on a consolidated basis, the total volume of new contracts amounted to 3,404,510
million (US$30,397 million), an increase of 343,213 million (US$3,064 million), or 11.2%, compared
with the previous fiscal year. Total operating revenue grew 5,413 million (US$48 million), or 5.0%, to
113,673 million (US$1,014 million).
Results by Business
Credit Card
In card shopping, the Company executed a range of promotional campaigns aimed at increasing card
usage. These included JACCS Loyal Members Program, a service under which users qualify to receive
various rewards depending on the usage volume during the previous year. The volume of new contracts
grew, driven by these promotional campaigns and such factors as the Companys efforts to promote
co-branded cards and an increase in new card members.
As a new product, the Company began issuing JACCS Card J/SpeedyTM, incorporating JCB Co.,
Ltd.s J/SpeedyTM payment service featuring NFC technology (contactless IC card). This card greatly
enhances payment speed and convenience, as payment is conducted swiftly by simply passing the card
close to a dedicated terminal. In addition, it also made possible highly secure IC chip-based payment. In
the future, the Company anticipates that the trend toward a cashless society will further advance in Japan
and in many Asian countries.
As a result, on a consolidated basis, in the credit card business the volume of new contracts
increased 9.8% compared with the previous fiscal year, to 1,127,244 million (US$10,064 million),
and operating revenue increased 2,265 million (US$20 million), or 8.3%, to 29,710 million
(US$265 million).
About Five Key Business Lines

The three core businesses operated by JACCS
that are introduced on pages 2022 are classified
according to the following five business segments
for Japanese accounting and regulatory disclosure
purposes.
26
JACCS CO., LTD.
Annual Report 2016
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.
Installment Sales Finance
Total Volume of New Contracts

(Billions of Yen)
In shopping credits, the volume of new contracts increased, driven by strong performances in major product
3,500
3,404
and service categories, including kimono, premium wristwatches and jewelry, and telecommunications.
3,061
In Web-related services, which the Company is vigorously promoting based on enhanced customer
convenience, the ratio of credit applications received via the Web saw a robust increase, underpinned by
3,000
2,500
such factors as the addition of new functionality to the WeBBy In-Store Simple Credit service, and a
2,784
2,387
Credit card
2,480
2,000
Installment
sales finance
1,500
Credit
guarantee
1,000
Financing
500
Other
operations
broader rollout of tablet devices used for credit applications.

In auto loans (including auto loan guarantees), despite weak growth in the volume of new contracts
at some domestic-brand new-vehicle dealerships, the overall volume of new contracts for domestic-brand
vehicles grew steadily, driven by such factors as the execution of marketing programs in each sales
channelcentering on used-vehicle dealersand efforts to deepen relationships with business partners.
0
In auto loans for imported vehicles, the volume of new contracts grew significantly compared with
2012
2013
2014
2015
2016
the previous fiscal year. This reflected such factors as an expansion in new partnerships with importers,
a stronger marketing effort for promoting captive finance, and an increase in credit usage accompanying
low-interest programs at dealers.
As a result, on a consolidated basis, the installment sales finance business recorded a 45.0%
increase in the volume of new contracts, to 446,153 million (US$3,983 million). Operating revenue
increased 2,173 million (US$19 million), or 11.2%, to 21,653 million (US$193 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 cardbased loans. The Company also released two new products, Inheritance Support Loans and Vacant
House Loans, thereby promoting new business alliances in the credit guarantee field.
Housing loan guarantees on condominiums for investment purposes recorded the highest volume
of new contracts to date. This was driven by stronger marketing programs aimed at expanding business
partnerships within a very active real estate environment, which saw a robust level of sales maintained
throughout the fiscal year.
In housing-related products, the volume of new contracts for solar power generation systems
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 2016
27
declined. In contrast, home renovation loans centering on house manufacturers performed robustly,
Total Operating Revenue

(Billions of Yen)
leading to an overall increase in the volume of new contracts compared with the previous year.
150
As a result, on a consolidated basis, the credit guarantee business recorded a 3.7% increase in the
120
107
102
104
108
113
volume of new contracts, to 751,581 million (US$6,710 million). Operating revenue rose 1,106 million
(US$9 million), or 2.8%, to 40,967 million (US$365 million).
90
Financing
In cash advances, despite the execution of promotional campaigns to stimulate usage among existing
60
cardholders and inactive members, these measure were insufficient to stem the decline in the volume
of new contracts.
30
As a result, on a consolidated basis, the financing business recorded a 2.4% decrease in the
0
2012
2013
2014
2015
2016
volume of new contracts, to 77,349 million (US$690 million). Operating revenue fell 1,080 million
Net Income Attributable to Owners

of the Parent
(Billions of Yen)
8
7.6
7.5
7.1
Other Operations
Bill collection services maintained a robust volume of new contracts, driven by such categories as rent
collection and fitness club membership fees. JACCS released its new dedicated bill collection service
Web site, and worked to enhance the level of service offered to bill collection clients.
6.8
6.5
Among consolidated subsidiaries in other operations, JACCS Lease Co., Ltd., achieved steady
expansion in its leasing operations, recording growth in the volume of new contracts.
In other fields, the Group formed an alliance with Benefit One Inc., a major provider of employee
4
benefit and welfare services. As part of a new initiative, JACCS attached Visa prepaid card functions to
the employee benefit and welfare program membership cards issued to Benefit Ones client companies
and organizations.
As a result, on a consolidated basis, other operations posted an 8.6% increase in the volume of
new contracts, to 1,002,183 million (US$8,948 million). Operating revenue* increased 949 million
0
2012
2013
2014
2015
2016

* Operating revenue presented for other operations is the sum of other operating revenue and financial revenue.
Operating Expenses and Net Income Attributable to Owners of the Parent
Total Assets
(Billions of Yen)
3,437
3,500
2,896
2,800
2,725
Total operating expenses increased 5,146 million (US$45 million), or 5.3%, compared with the previous
fiscal year, to 101,430 million (US$905 million). This reflected increases in sales promotional expenses,
3,158
such as credit card loyalty point programs, IT system investment, and doubtful accounts-related expenses.
2,718
Operating income increased 267 million (US$2 million), or 2.2%, compared with the previous
fiscal year, to 12,243 million (US$109 million).
2,100
Income before income taxes increased 401 million (US$3 million), or 3.5%, compared with the
previous fiscal year, to 11,978 million (US$106 million).
1,400
Net income attributable to owners of the parent increased 462 million (US$4 million), or 6.5%,
compared with the previous fiscal year, to 7,569 million (US$67 million).
700
Net income per share (basic) amounted to 44.02 (US$0.39), an increase of 6.3% compared with
0
2012
2013
2014
2015
2016
the previous fiscal year. The Company implemented cash dividends totaling 14.00 (US$0.13) per share
applicable to the fiscal year under review, which remained unchanged from the previous fiscal year.
28
JACCS CO., LTD.
Annual Report 2016
Analysis of Financial Position
Credit Rating
Fund Procurement
R&I
JCR
Long term
A-
A-
Short term
a-1
J-1
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
stability and cost considerations.
Since the Company undertakes direct financing in capital markets, it obtains credit ratings for its bonds.
Financial Position
Total assets at March 31, 2016, amounted to 3,437,641 million (US$30,693 million), an increase of
Total Net Assets

(Billions of Yen)
279,596 million (US$2,496 million), or 8.9%, compared with the previous fiscal year-end.
150
Total current assets increased 284,212 million (US$2,537 million), or 9.2%, to 3,362,172
million (US$30,019 million). This increase mainly reflected increases in accounts receivable-installment,
120
117
132
133
2015
2016
122
111
accounts receivable-installment sales-credit guarantee, and lease investment assets.

Total noncurrent assets decreased 4,616 million (US$41 million), or 5.8%, compared with the
90
previous fiscal year-end, to 75,469 million (US$673 million), reflecting an increase in software, and
declines in investment securities and net defined benefit asset.
60
Total current liabilities at March 31, 2016, amounted to 2,839,280 million (US$25,350 million),
an increase of 273,086 million (US$2,438 million), or 10.6%, compared with the previous fiscal year-
30
end, reflecting increases in accounts payable-credit guarantee, commercial papers, and other interestbearing liabilities.
0
2012
2013
2014
Total noncurrent liabilities at fiscal year-end increased 6,073 million (US$54 million), or 1.3%,
to 465,078 million (US$4,152 million). Although long-term loans payable and deferred tax liabilities
decreased, bonds payable increased.
Total net assets increased 437 million (US$3 million), or 0.3%, to 133,283 million (US$1,190
million). Valuation difference on available-for-sale securities and remeasurements of defined benefit plans
CF from Operating Activities

CF from Investing Activities
CF from Financing Activities
Cash Flows
(Billions of Yen)
300
decreased, while retained earnings increased. The equity ratio decreased 0.3 percentage point, to 3.9%.
Net assets per share amounted to 772.81 (US$6.90) at fiscal year-end, compared with 772.67 at the
200
151.8
previous fiscal year-end.
115.1
100
72.8
Cash Flows
Net cash used in operating activities amounted to 144,453 million (US$1,289 million). Significant items
36.2
15.1
0
-4.1
included increase in notes and accounts payable-trade of 113,834 million (US$1,016 million), income
before income taxes of 11,978 million (US$106 million), and increase in notes and accounts receivable-
-61.1
-8.9
-8.3
-13.9
-100
-89.4
-86.6
-144.4
trade of 280,369 million (US$2,503 million).

Net cash used in investing activities amounted to 8,860 million (US$79 million). Significant items
-8.8
-47.9
-200
2012
2013
2014
2015
2016
included purchase of property, plant and equipment and intangible assets of 8,904 million (US$79 million).
Net cash provided by financing activities amounted to 151,898 million (US$1,356 million).
Significant items included proceeds from long-term loans payable of 142,518 million (US$1,272
million), net increase in commercial papers of 67,500 million (US$602 million), net increase in shortterm loans payable of 44,374 million (US$396 million), and repayment of long-term loans payable of
108,001 million (US$964 million).
As a result, cash and cash equivalents at end of year totaled 84,074 million (US$750 million),
a decrease of 1,418 million (US$12 million) compared with the previous fiscal year-end.
JACCS CO., LTD.
Annual Report 2016
29
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.
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 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.
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.
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.
2. Market-related risk
Risk of increase in funding interest rates
As of March 31, 2016, the Groups overall fund procurement (including straight
corporate bonds and commercial paper) fixed interest rate ratio (including swaps) stood
at 51.3%, and the floating interest rate ratio stood at 48.7%. 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, 2016, 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 350 billion (US$3,125 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, 2016, the Group holds investment securities amounting to 21,857
million (US$195 million) (market-listed and unlisted shares, etc.) and property, plant
and equipment amounting to 19,667 million (US$175 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.
30
JACCS CO., LTD.
Annual Report 2016
(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, installment sales
finance operations, and fund settlement operations (prepaid card and fund transfer
operations), and the Companys consolidated subsidiaries conduct loan servicing and
other operations. Pursuant to laws and regulations, these businesses require registration
with or permits issued by the relevant authorities. To ensure strict compliance with laws
and regulations, the Group has established compliance systems. 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.
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.
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.
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.
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.
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 and information related to Japans national identification number
system 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
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,
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.
10. Reputation risk

The Groups reputation is extremely important to the maintenance of its relationships
with customers, investors, regulatory agencies, and society in general. Its 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 0.97 on an ordinary income basis (as of
March 31, 2016). 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 an affiliate materialized, it would not immediately have a significant effect on
the Group as a whole.
12. Overseas business risk
The Group is working to expand its business in overseas markets, centering on Southeast
Asia. The Company has operations in Vietnam (consolidated subsidiary) and Indonesia
(equity-method affiliate). Engaging in these overseas business operations carries a
range of inherent risks. For example, unlike in Japan, there may be unforeseen changes
in laws or regulations, there is the risk of political or economic turmoil, and there is
exchange rate fluctuation risk. If such risks were to materialize, it may affect the
Groups operating performance.
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,
2016, 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 2016
31
CONSOLIDATED BALANCE SHEETS

JACCS CO., LTD. and Consolidated Subsidiaries
Thousands of
U.S. Dollars
Millions of Yen
As of March 31
2016
2015
2016
ASSETS
Current assets:
Cash and deposits (Notes 15 and 16)
84,074
85,492
750,661
Accounts receivable-installment (Notes 6, 7 and 16)
1,191,816
1,040,954
10,641,214
Accounts receivable-installment sales-credit guarantee
1,986,459
1,876,591
17,736,241
52,417
32,940
468,009
Prepaid expenses
1,578
1,633
14,089
Deferred tax assets (Note 21)
2,705
2,680
24,152
Advances paid
40,201
29,326
358,938
Accounts receivable-other
10,970
18,598
97,946
3,319
1,616
29,634
(11,367)
(11,870)
(101,491)
3,362,172
3,077,960
30,019,393
8,488
8,463
75,786
Land
14,986
14,989
133,803
Other
4,634
4,444
41,375
28,108
27,896
250,964
(8,441)
(7,808)
(75,366)
19,667
20,088
175,598
15,724
18,961
140,393
Investments in unconsolidated subsidiaries and affiliated companies
6,134
6,817
54,768
Bad debts
1,837
1,862
16,402
270
276
2,411
25,442
23,459
227,160
Lease investment assets
Other
Allowance for doubtful accounts
Total current assets
Noncurrent assets:
Property, plant and equipment:
Buildings and structures
Total
Less accumulated depreciation
Total property, plant and equipment
Investments and other assets:

Investment securities (Notes 16 and 17)
Long-term prepaid expenses

Intangible assets
Deferred tax assets (Note 21)
27
Guarantee deposits
1,827
1,836
16,312
Net defined benefit asset (Note 19)
4,054
6,528
36,196
Other
1,754
1,587
15,661
(1,243)
(1,331)
(11,098)
Total investments and other assets
55,802
59,997
498,232
Total noncurrent assets
75,469
80,085
673,830
3,437,641
3,158,045
$30,693,223
Total assets
The accompanying notes are an integral part of these statements.
32
JACCS CO., LTD.
Annual Report 2016
Thousands of
U.S. Dollars
Millions of Yen
As of March 31
2016
2015
2016
LIABILITIES
Current liabilities:
Notes and accounts payable-trade
Accounts payable-credit guarantee
45,924
41,953
410,035
1,986,459
1,876,591
17,736,241
215,951
171,643
1,928,134
2,300
Current portion of long-term loans payable (Notes 6, 9 and 16)
143,427
106,701
1,280,598
Commercial papers (Notes 9 and 16)
Short-term loans payable (Notes 6, 9 and 16)

Current portion of bonds payable (Notes 9 and 16)
267,000
199,500
2,383,929
Accounts payable-other
3,057
3,241
27,295
Accrued expenses
1,009
1,047
9,009
Income taxes payable

Deposits received
Unearned revenue
Provision for bonuses
Provision for point card certificates
Deferred installment income (Note 8)
Other
Total current liabilities
2,082
3,758
18,589
55,426
49,733
494,875
216
230
1,929
2,567
2,608
22,920
4,103
3,368
36,634
104,253
97,766
930,830
7,806
5,755
69,696
2,839,280
2,566,194
25,350,714
Noncurrent liabilities:
Bonds payable (Notes 9 and 16)
105,000
95,000
937,500
Long-term loans payable (Notes 6, 9 and 16)
353,910
356,118
3,159,910
Provision for directors retirement benefits
11
15
98
Provision for loss on interest repayment
1,256
1,275
11,214
Deferred tax liabilities
1,909
3,704
17,045
Long-term guarantee deposited
2,817
2,778
25,152
175
115
1,563
Other
Total noncurrent liabilities
465,078
459,005
4,152,482
3,304,358
3,025,199
29,503,196
16,138
16,138
144,089
Capital surplus
30,506
30,511
272,375
Retained earnings
84,451
79,288
754,027
Treasury stock
(1,407)
(1,625)
(12,562)
129,688
124,312
1,157,929
38,411
Total liabilities
NET ASSETS
Shareholders equity: (Note 14)
Capital stock
Authorized 394,550,000 shares
Issued 175,395,808 shares
Total shareholders equity

Accumulated other comprehensive income:
Valuation difference on available-for-sale securities
4,302
6,452
Deferred gains or losses on hedges
(25)
(42)
(223)
Foreign currency translation adjustment
159
906
1,420
Remeasurements of defined benefit plans

Total accumulated other comprehensive income
Subscription rights to shares (Note 20)
Total net assets
Total liabilities and net assets
(1,013)
1,081
(9,045)
3,423
8,397
30,563
172
137
1,535
133,283
132,846
1,190,027
3,437,641
3,158,045
$30,693,223
JACCS CO., LTD.
Annual Report 2016
33
CONSOLIDATED STATEMENTS OF INCOME

Thousands of
U.S. Dollars
Millions of Yen
2016
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
2015
2016
29,710
21,653
40,967
11,626
9,218
27,445
19,480
39,861
12,706
8,310
$ 265,268
193,330
365,777
103,804
82,304
60
436
3
499
113,673
74
369
15
458
108,260
536
3,892
27
4,455
1,014,938
93,394
87,797
833,876
6,539
327
1,170
8,036
101,430
6,976
238
1,273
8,487
96,284
58,384
2,920
10,446
71,750
905,626
12,243
11,976
109,312
Non-operating income:
Equity in earnings of affiliates
Miscellaneous income
Gain on sales of investment securities
Total non-operating income
133
42
175
38
149
80
267
1,187
375
1,562
Non-operating expenses
Equity in loss of affiliated companies
Miscellaneous loss
Loss on retirement of non-current assets
Loss on sales of non-current assets
Loss on valuation of investment securities
Loss on sales of investment securities
Expenses related to 60th-anniversary commemorative events
Loss on change in equity
Total non-operating expenses
232
40
12
61
1
94
0
440
205
6
56
280
119
666
2,071
357
107
545
9
839
0
3,928
11,978
11,577
106,946
4,335
74
4,409
7,569
7,569
4,636
(166)
4,470
7,107
7,107
38,705
661
39,366
67,580
67,580
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
Operating income
Income before income taxes

Income taxes-current
Income taxes-deferred
Total income taxes
Net income
Net income attributable to owners of the parent
Yen
2016
Per share data (Note 25)
Equity
Net incomebasic
Net incomediluted
Cash dividends
34
JACCS CO., LTD.
Annual Report 2016
772.81
44.02
43.88
14.00
U.S. Dollars
2015
772.67
41.42
41.30
14.00
2016
$6.90
0.39
0.39
0.13
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Net Income
Other comprehensive income: (Note 13)
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of affiliated company
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to:
Owners of the parent
Non-controlling interests
Thousands of
U.S. Dollars
Millions of Yen
2016
7,569
2015
7,107
2016
$ 67,580
(2,150)
8
(128)
(2,060)
(644)
(4,974)
2,595
3,262
7
339
849
513
4,970
12,077
(19,196)
71
(1,143)
(18,393)
(5,750)
(44,411)
23,169
2,595
12,077
$ 23,169
JACCS CO., LTD.
Annual Report 2016
35
CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS

Millions of Yen
Year ended March 31, 2016

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 attributable to owners of
the parent
Purchase of treasury stock
Disposal of treasury stock
Inserted directly into net assets-foreign
currency translation adjustment
Net changes of items other than
shareholders equity
Total changes during the consolidated
fiscal year
Balance as of March 31, 2016
Capital stock
16,138
Shareholders equity
Capital surplus
Retained earnings
30,511
79,288
Treasury stock
(1,625)
16,138
30,511
79,288
(1,625)
(2,406)
7,569
(5)
(4)
222
(5)
5,163
218
16,138
30,506
84,451
(1,407)
Millions of Yen

accounting policies
Restated balance
fiscal year
the parent
shareholders equity
fiscal year
Accumulated other comprehensive income

Valuation difference on
Deferred gains or losses Foreign currency translaavailable-for-sale securities
on hedges
tion adjustment
6,452
(42)
906
Remeasurements of
defined benefit plans
1,081
Subscription rights to
shares
137
6,452
(42)
906
1,081
137
(747)
(2,150)
17
(2,094)
35
(2,150)
17
(747)
(2,094)
35
4,302
(25)
159
(1,013)
172
Millions of Yen

accounting policies
Restated balance
fiscal year
the parent
shareholders equity
fiscal year
Capital stock
36
JACCS CO., LTD.
Annual Report 2016
16,138
Shareholders equity
Capital surplus
Retained earnings
30,482
74,359
Treasury stock
(1,769)
394
16,138
30,482
74,753
(1,769)
(2,572)
7,107
29
(4)
148
29
4,535
144
16,138
30,511
79,288
(1,625)
Millions of Yen

accounting policies
Restated balance
fiscal year
the parent
shareholders equity
fiscal year

on hedges
tion adjustment
3,190
(32)
(8)
Remeasurements of
277
shares
74
3,190
(32)
(8)
277
74
914
3,262
(10)
804
63
3,262
(10)
914
804
63
6,452
(42)
906
1,081
137
Thousands of U.S. Dollars

accounting policies
Restated balance
fiscal year
the parent
shareholders equity
fiscal year
Capital stock
$144,089
Shareholders equity
Capital surplus
Retained earnings
$272,420
$707,929
Treasury stock
$(14,508)
144,089
272,420
707,929
(14,508)
(21,482)
67,580
(45)
(36)
1,982
(45)
46,098
1,946
$144,089
$272,375
$754,027
$(12,562)

accounting policies
Restated balance
fiscal year
the parent
shareholders equity
fiscal year

on hedges
tion adjustment
$57,607
$(375)
$8,090
Remeasurements of
$ 9,652
shares
$1,223
57,607
(375)
8,090
9,652
1,223
(6,670)
(19,196)
152
(18,697)
312
(19,196)
152
(6,670)
(18,697)
312
$38,411
$(223)
$1,420
$ (9,045)
$1,535
JACCS CO., LTD.
Annual Report 2016
37
CONSOLIDATED STATEMENTS OF CASH FLOWS

2016
Cash flows from operating activities:
Income before income taxes
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 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 on sales 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 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
Cash flows from investing activities:
Purchase of property, plant and equipment and intangible assets
Proceeds from sales 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 decrease (increase) in short-term loans receivable
Net cash provided by (used in) investing activities
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
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
38
JACCS CO., LTD.
Thousands of
U.S. Dollars
Millions of Yen
Annual Report 2016
2015
2016
11,978
7,891
(589)
(39)
735
(19)
(496)
7,548
(3)
61
1
(42)
94
40
(280,369)
7,627
(535)
113,834
6,487
(13,228)
7,797
(131,227)
497
(7,607)
(6,116)
(144,453)
11,577
6,176
(2,374)
(61)
833
(44)
(443)
7,752
(15)
56
(80)
0
(38)
(228,807)
(2,162)
(518)
116,217
4,763
1,605
7,327
(78,236)
443
(7,764)
(1,125)
(86,682)
$ 106,946
70,455
(5,258)
(348)
6,563
(170)
(4,429)
67,393
(27)
545
9
(375)
839
357
(2,503,295)
68,098
(4,777)
1,016,375
57,920
(118,107)
69,616
(1,171,670)
4,438
(67,920)
(54,607)
(1,289,759)
(8,904)
8
(45)
127
(103)
48
(14)
27
(4)
(8,860)
(9,425)
(4,699)
172
(50)
44
(13)
28
(13,943)
(79,500)
71
(402)
1,134
(919)
429
(125)
241
(36)
(79,107)
44,374
67,500
142,518
(108,001)
10,000
(2,300)
217
(4)
(2,406)
151,898
20,914
50,800
82,326
(86,442)
50,000
177
(4)
(2,573)
115,198
396,196
602,679
1,272,482
(964,295)
89,286
(20,536)
1,938
(36)
(21,482)
1,356,232
(3)
(1,418)
85,492
84,074
35
14,608
70,884
85,492
(27)
(12,661)
763,322
$ 750,661
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

1. Basis of Presenting the Consolidated Financial Statements

The accompanying consolidated financial statements have been prepared in accordance with the provisions set forth in the Japanese Financial Instruments and
Exchange Law and its related accounting regulations, and in conformity with accounting principles generally accepted in Japan (Japanese GAAP), which are
different in certain respects as to application and disclosure requirements from International Financial Reporting Standards.
The accompanying consolidated financial statements have been restructured and translated into English from the consolidated financial statements of
JACCS Co., Ltd. and subsidiaries (the Company) prepared in accordance with Japanese GAAP and filed with the appropriate Local Finance Bureau of the
Ministry of Finance as required in the Japanese Financial Instruments and Exchange Law. Certain supplementary information included in the statutory Japanese
language consolidated financial statements is not presented in the accompanying consolidated financial statements. Figures in these consolidated financial
statements are rounded off to the nearest million of yen.
The translation of the Japanese yen amounts into U.S. dollars are included solely for the convenience of readers outside Japan, using the prevailing exchange
rate at March 31, 2016, which was 112 to U.S.$1. The convenience translations should not be construed as representations that the 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.
2. Summary of Significant Accounting Policies

(a) Scope of Consolidation
The accompanying consolidated financial statements include the accounts of JACCS Co., Ltd. and its significant subsidiaries. All significant intercompany
transactions and balances have been eliminated in consolidation. The consolidated financial statements include the accounts of JACCS Co., Ltd. and 5
subsidiaries in the year ended March 31, 2016 and 5 subsidiaries in the year ended March 31, 2015.
Investments in a significant affiliate are accounted for by the equity method. Investments in an insignificant non-consolidated subsidiary not accounted for
by the equity method are carried at cost.
1. Number of consolidated subsidiaries: 5
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.
(b) Application of the Equity Method
1. Number of equity-method affiliates: 1
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.
(C) 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.
(d) Financial Instruments
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.
JACCS CO., LTD.
Annual Report 2016
39
2. Derivatives
Derivatives are stated at fair value.
(e) Property, Plant and Equipment
Property, plant and equipment are stated at cost. Depreciation of property and equipment is computed using the declining-balance method based on the
estimated useful lives of assets as prescribed by income tax laws, however, the straight-line method is used for buildings (excluding building fixtures) acquired
on or after April 1, 1998.
(f) 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).
(g) 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.
(h) 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.
(i) 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.
(j) 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.
(k) 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.
(l) 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.
(m) 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.
(n) Recognition of Operating Revenues
1. 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:
2. Commission from member stores
Commission from member stores is recognized at the time of computing volume of new contracts.
(O) 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.
(p) Significant Hedging Activities
1. 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.
40
JACCS CO., LTD.
Annual Report 2016
2. Hedging instruments and hedged items

Hedging instruments...........Derivatives transactions (interest rate swap)
Hedged items......................Loans payable
3. Hedging policy
Derivatives transactions are utilized to reduce risks arising from interest rate and foreign exchange fluctuations in the future.
4. 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.
(q) Cash Equivalents
All highly liquid investments with a maturity of three months or less when purchased are considered cash equivalents.
(r) 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.
3. Changes in Accounting Policies

Application of Accounting Standard for Business Combinations
From the fiscal year ended March 31, 2016, the Company has applied the Revised Accounting Standard for Business Combinations (ASBJ Statement No.
21, September 13, 2013), Revised Accounting Standard for Consolidated Financial Statements (ASBJ Statement No. 22, September 13, 2013), and Revised
Accounting Standard for Business Divestitures (ASBJ Statement No. 7, September 13, 2013). Consequently, the accounting method was changed so that any
differences arising from changes in the equity stake in subsidiaries under ongoing control of the Company are recorded as capital surplus, and acquisitionrelated costs are recorded as expenses for the fiscal year in which they are incurred. In addition, with respect to any business combination entered into at the
commencement of the fiscal year ended March 31, 2016 or later, the accounting method was changed to reflect adjustments to the allocation of acquisition cost
on the consolidated financial statements of the fiscal year in which the relevant business combinations became or will become effective. This was done through
the confirmation of previously applied provisional accounting treatment. Furthermore, the presentation of net income was changed and the minority interests
are now presented as non-controlling interests. In order to reflect the changes in the presentation, certain reclassifications have been made to the consolidated
financial statements for the previous fiscal year.
The Company has applied these revised accounting standards in accordance with transitional provisions in paragraph 58-2(4) of the Accounting Standard for
Business Combinations, paragraph 44-5(4) of the Accounting Standard for Consolidated Financial Statements and paragraph 57-4(4) of the Accounting Standard for
Business Divestitures, as of April 1, 2015.
There is no impact on the consolidated financial statements as a result of the application of these revised accounting standards.
4. Accounting Standards Yet to Be Applied

Revised Implementation Guidance on Recoverability of Deferred Tax Assets (ASBJ Guidance No. 26, March 28, 2016)
(a) Overview
Following the framework in Audit Committee Report No. 66 Audit Treatment regarding the Judgments of Recoverability of Deferred Tax Assets, which prescribes
estimation of deferred tax assets according to the classification of the entity by one of five types, the following treatments were changed as necessary:
1. Treatment for an entity that does not meet any of the criteria in types 1 to 5
2. Criteria for types 2 and 3
3. Treatment for deductible temporary differences which an entity classified as type 2 is unable to schedule
4. Treatment for the period which an entity classified as type 3 is able to reasonably estimate with respect to future taxable income before consideration of
taxable or deductible temporary differences that exist at the end of the current fiscal year
5. Treatment when an entity classified as type 4 also meets the criteria for type 2 or 3
(b) Effective date
Effective from the beginning of the fiscal year ending March 31, 2017
(c) Effects of application of the Guidance
The Company is currently assessing the impact of the application of the Revised Implementation Guidance on Recoverability of Deferred Tax Assets on the
consolidated financial statements.
JACCS CO., LTD.
Annual Report 2016
41
5. Employee Stock Ownership Plan Trust Account

(a) Transactions of Delivering the Companys Own Stock to Employees etc. through Trusts
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.
(b) 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 550 million and the number of shares was 1,233 thousand as of March 31, 2015, and the corresponding figures as of March 31, 2016, were 377
million (US$3,364 thousand) and 844 thousand shares, respectively. The average number of shares of treasury stock held during the year ended March 31,
2015, was 1,389 thousand, and the corresponding figure for the year ended March 31, 2016, was 1,054 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.
6. Pledged Assets
Pledged assets as of March 31, 2016 and 2015 are as follows:
Thousands of
U.S. Dollars
Millions of Yen
2016
Assets pledged as collateral:
Accounts receivable-installment
Debt secured by the above collateral:
Short-term loans payable
Current portion of long-term loans payable
Long-term loans payable
Total
2015
2016
84,817
288,503
$757,295
36,265
6,145
44,960
87,370
75,125
45,827
168,305
289,257
$323,795
54,866
401,428
$780,089
7. Accounts Receivable-Installment
Accounts receivable-installment as of March 31, 2016 and 2015 are as follows:
Credit card business

Installment sales finance business
Financing
Other
Total
Thousands of
U.S. Dollars
Millions of Yen
2016
170,043
768,142
250,223
3,408
1,191,816
2015
160,884
624,947
252,289
2,834
1,040,954
2016
$ 1,518,241
6,858,410
2,234,134
30,429
$10,641,214
8. Deferred Installment Income

Deferred installment income as of March 31, 2016 and 2015 are as follows:

Installment sales finance business
Credit guarantee
Financing
Other
Total
42
JACCS CO., LTD.
Annual Report 2016
Thousands of
U.S. Dollars
Millions of Yen
2016
747
44,698
58,798
9
1
104,253
2015
771
34,416
62,560
19
0
97,766
2016
$ 6,670
399,089
524,982
80
9
$930,830
9. Short-Term Loans and Long-Term Debt

Short-term loans as of March 31, 2016 and 2015, consist of the following:
Thousands of
U.S. Dollars
Millions of Yen
2016
Short-term loans principally from banks at weighted average rate of:
0.4% as of March 31, 2016, and 0.5% as of March 31, 2015
Commercial papers at weighted average rate of:
2015
2016
215,951
171,643
$1,928,134
267,000
199,500
2,383,929
Long-term debt as of March 31, 2016 and 2015, consist of the following:
Thousands of
U.S. Dollars
Millions of Yen
2016
2015
2016
Bonds and notes issued by the Company

1.820% bonds due in 2016
Loans, principally from banks and other financial institutions at weighted average rate of:
Less current portion

Long-term debt, less current portion
15,000
15,000
15,000
20,000
10,000
10,000
10,000
10,000
2,300
15,000
15,000
15,000
20,000
10,000
10,000
10,000
133,930
133,930
133,930
178,570
89,285
89,285
89,285
89,285
497,336
462,819
4,440,500
602,336
(143,427)
458,909
560,119
(109,001)
451,118
5,378,000
(1,280,598)
$4,097,402
The aggregate annual maturities of long-term debt as of March 31, 2016 are summarized as follows:
Millions of Yen
2017
2018
2019
2020
2021 and thereafter
Total
Thousands of
U.S. Dollars
143,427
93,515
95,850
96,226
173,318
602,336
$1,280,598
834,955
855,804
859,161
1,547,482
$5,378,000
10. 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
2016
2015
1,701
3,671
(200,000 million
(400,000 million
Indonesian rupiahs)
Indonesian rupiahs)
1,071
1,784
(9,508 thousand U.S. dollars) (14,842 thousand U.S. dollars)
2016
$15,188
9,508
Note: Foreign currency-denominated guarantee obligations are translated into yen at the exchange rate prevailing on the account closing date.
JACCS CO., LTD.
Annual Report 2016
43
11. Loan Commitments

The Company carries out cash advance operations, which are ancillary to loan card and credit card operations. The balance of unexecuted lending related to
loan commitments within cash advance operations is as shown below. Under loan commitment contracts, since lending terms include screening relating to the
borrowers use of loan funds and credit standing, the loans are not necessarily executed up to the full amount.
Thousands of
U.S. Dollars
Millions of Yen
Total loan commitments

Executed loans
Balance
2016
1,194,643
61,413
1,133,230
2015
1,206,354
70,216
1,136,138
2016
$10,666,455
548,330
$10,118,125
12. New Contracts

Volume of new contracts for the years ended March 31, 2016 and 2015 are as follows:
Thousands of
U.S. Dollars
Millions of Yen

Installment sales finance
Credit guarantee
Financing
Other
Total
Note: Balance at end of period for credit guarantee maximum lending:
2016
1,127,244
446,153
751,581
77,349
1,002,183
3,404,510
30,380
2015
1,026,248
307,767
725,019
79,235
923,028
3,061,297
24,758
2016
$10,064,679
3,983,508
6,710,545
690,616
8,948,063
$30,397,411
$ 271,250
13. Comprehensive Income

The components of other comprehensive income for the years ended March 31, 2016 and 2015 are as follows:
Thousands of
U.S. Dollars
Millions of Yen
2016
Gains (losses) arising during the year
Reclassification adjustments to profit or loss
Amount before income tax effect
Income tax effect
Total valuation difference on available-for-sale securities
Losses arising during the year
Income tax effect
Total deferred gains or losses on hedges
Adjustment arising during the year
Remeasurements of defined benefit plans, net of tax
Income tax effect
Total remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of affiliated companies accounted for using equity method
Total share of other comprehensive income of entities accounted for using equity method
Total other comprehensive income
44
JACCS CO., LTD.
Annual Report 2016
2015
2016
(3,106)
4
(3,102)
952
(2,150)
4,597
(81)
4,516
(1,254)
3,262
$(27,732)
36
(27,696)
8,500
(19,196)
(7)
20
13
(5)
8
(5)
18
13
(6)
7
(63)
179
116
(45)
71
(128)
339
(1,143)
(2,758)
(251)
(3,009)
949
(2,060)
1,439
(205)
1,234
(385)
849
(24,625)
(2,241)
(26,866)
8,473
(18,393)
(652)
8
(644)
(4,974)
514
(1)
513
4,970
(5,821)
71
(5,750)
$(44,411)
14. Net Asset

Equity
Japanese companies are subject to the Companies Act of Japan (the Companies Act).
The significant provisions in the Companies Act that affect financial and accounting matters are summarized below:
1. Dividends
Under the Companies Act, companies can pay dividends at any time during the fiscal year in addition to the year-end dividend upon resolution at the
shareholders meeting. For companies that meet certain criteria, the Board of Directors may declare dividends (except for dividends in kind) at any time during
the fiscal year if the company has prescribed so in its articles of incorporation.
Semiannual interim dividends may also be paid once a year upon resolution by the Board of Directors if the articles of incorporation of the company so
stipulate. The Companies Act provides certain limitations on the amounts available for dividends or the purchase of treasury stock. The limitation is defined as
the amount available for distribution to the shareholders, but the amount of net assets after dividends must be maintained at no less than 3 million.
2. Increases/decreases and transfer of common stock, reserve, and surplus
The Companies Act requires that an amount equal to 10% of dividends must be appropriated as a legal reserve (a component of retained earnings) or as
additional paid-in capital (a component of capital surplus) depending on the equity account that was charged upon the payment of such dividends until the
total of the aggregate amount of the legal reserve and additional paid-in capital equals 25% of common stock. Under the Companies Act, the total amount
of additional paid-in capital and legal reserve may be reversed without limitation. The Companies Act also provides that common stock, legal reserve,
additional paid-in capital, other capital surplus, and retained earnings can be transferred among the accounts under certain conditions upon resolution of the
shareholders.
3. Treasury stock and treasury stock acquisition rights
The Companies Act also provides for companies to purchase treasury stock and dispose of such treasury stock by resolution of the Board of Directors.
The amount of treasury stock purchased cannot exceed the amount available for distribution to the shareholders, which is determined by a specific formula.
Under the Companies Act, stock acquisition rights are presented as a separate component of equity. The Companies Act also provides that companies can
purchase both treasury stock acquisition rights and treasury stock. Such treasury stock acquisition rights are presented as a separate component of equity or
deducted directly from stock acquisition rights.
15. Cash Flows Information

Reconciliation of cash and cash equivalents in the consolidated statements of cash flows and the consolidated balance sheets as of March 31, 2016 and 2015
are as follows:
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
2016
84,074
84,074
2015
85,492
85,492
2016
$750,661
$750,661
16. Financial Instrument

(a) 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.
JACCS CO., LTD.
Annual Report 2016
45
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.
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, 2016, the Company calculates that if the index interest rate had been higher by 10 basis point (0.1%), financial expenses would
increase 273 million (US$2,438 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 (b) Fair values of
Financial Instruments do not represent the market risks on derivatives themselves.
46
JACCS CO., LTD.
Annual Report 2016
(b) 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, 2016 and 2015,
as well as their differences. Financial instruments of which fair values were hardly available are not represented herein (See Note 2).
Millions of Yen
2016
Consolidated
balance sheet
amount
Cash and deposits
Accounts receivableinstallment:
Allowance for doubtful
accounts
Deferred installment
income
84,074
2015
Fair value
84,074
Differences
Consolidated
balance sheet
amount
85,492
2016
Fair value
85,492
Differences
Consolidated
balance sheet
amount
Fair value
$ 750,661
750,661
1,191,816
1,040,954
10,641,214
(11,367)
(11,870)
(101,491)
(45,455)
(34,665)
(405,848)
1,134,994
1,202,902
15,143
15,143
Total assets
1,234,211
1,302,119
215,951
215,951
Commercial papers
267,000
267,000
Bonds payable*1
105,000
106,544
Long-term loans payable*2
497,336
67,908
Differences
$
994,419
1,038,869
44,450
10,133,875
10,740,197
606,322
18,351
18,351
135,205
135,205
67,908
1,098,262
1,142,712
44,450
$11,019,741 $11,626,063
$606,322
171,643
171,643
$ 1,928,134 $ 1,928,134
199,500
199,500
2,383,929
2,383,929
1,544
97,300
98,236
936
937,500
951,285
13,785
503,495
6,159
462,819
466,929
4,110
4,440,500
4,495,491
54,991
1,085,287
1,092,990
7,703
931,262
936,308
5,046
$9,690,063 $ 9,758,839
$ 68,776
(24)
(24)
(37)
(37)
(214) $
(214)
(24)
(24)
(37)
(37)
(214) $
(214)
Investment securities:
Available-for-sale
securities
Total liabilities
Derivatives transactions*3:
Hedge accounting applied
Total derivatives
transactions
Other:
Loan guarantee contracts
209,731
209,622
$1,872,598
*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 ( ).
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 2016
47
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: see Note 18 Derivatives
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.
Thousands of
U.S. Dollars
Millions of Yen
2016
Book value
6,715
Description
Unlisted shares
2015
Book value
7,428
2016
Book value
$59,955
Fair values of the above shares without market prices are not represented herein as calculation of their fair values are hardly available. The Company carried out impairment of
unlisted shares amounting to 49 million (US$438 thousand) in the fiscal year under review.
Note 3: Maturity of monetary assets after the balance sheet date
March 31, 2016
Millions of Yen
Cash and deposits

Total
Within one year

84,074
375,916
459,990
1 to 2 years
193,491
193,491
2 to 3 years
143,291
143,291
Within one year

85,492
339,666
425,158
1 to 2 years
168,895
168,895
2 to 3 years
119,515
119,515
Within one year

$ 750,661
3,356,393
$4,107,054
1 to 2 years
$
1,727,598
$1,727,598
2 to 3 years
$
1,279,384
$1,279,384
March 31, 2015
3 to 4 years
102,022
102,022
4 to 5 years
69,338
69,338
Over 5 years
307,757
307,757
4 to 5 years
53,111
53,111
Over 5 years
275,043
275,043
4 to 5 years
$
619,089
$619,089
Over 5 years
$
2,747,830
$2,747,830
4 to 5 years
30,000
65,818
95,818
Over 5 years
30,000
47,500
77,500
4 to 5 years
10,000
82,826
92,826
Over 5 years
50,000
19,500
69,500
Millions of Yen
Cash and deposits

Total
March 31, 2016
3 to 4 years
84,723
84,723
Cash and deposits

Accounts receivable installment
Total
3 to 4 years
$
910,911
$910,911
Note 4: Repayment schedule of bonds payable, long-term loans payable and other interest-bearing liabilities after the balance sheet date
March 31, 2016
Millions of Yen

Commercial papers
Bonds payable
Total
Within one year

215,951
267,000
143,427
626,378
1 to 2 years
20,000
73,516
93,516
2 to 3 years
15,000
80,850
95,850
Within one year

171,643
199,500
2,300
106,701
480,144
1 to 2 years
143,427
143,427
2 to 3 years
20,000
73,516
93,516
March 31, 2015
Millions of Yen

Commercial papers
Bonds payable
Total
48
JACCS CO., LTD.
3 to 4 years
10,000
86,226
96,226
Annual Report 2016
3 to 4 years
15,000
36,850
51,850
March 31, 2016
Within one year

$1,928,134
2,383,929
1,280,598
$5,592,661

Commercial papers
Bonds payable
Total
1 to 2 years
$
178,571
656,393
$ 834,964
2 to 3 years
$
133,929
721,875
$855,804
3 to 4 years
$
89,286
769,875
$859,161
4 to 5 years
$
267,857
587,661
$855,518
Over 5 years
$
267,857
424,107
$691,964
17. Securities
(a) Available-for-Sale Securities
Millions of Yen
2016
Category
Balance sheet amount
exceeding acquisition cost:
Equity shares
Balance sheet amount not
exceeding acquisition cost:
Equity shares
Total
Consolidated
balance sheet
amount
Acquisition
cost
2015
Consolidated
Unrealized
balance sheet
gains (losses)
amount
Acquisition
cost
2016
Unrealized
gains (losses)
Consolidated
balance sheet
amount
Acquisition
cost
Unrealized
gains (losses)
13,381
7,101
6,280
18,125
8,910
9,215
$119,473
$63,402
$56,071
1,762
15,143
1,995
9,096
(233)
6,047
226
18,351
291
9,201
(65)
9,150
15,732
$135,205
17,812
$81,214
(2,080)
$53,991
Notes: 1. Acquisition cost refers to the book value after impairment.

2. With regard to impairment, in the case where fair value at end of period has fallen 50% or more compared with the acquisition cost, such items are fully impaired. In the
case where fair value has fallen 30%50% compared with the acquisition cost, such items are impaired to an extent recognized as necessary after considering such
factors as recoverability in fair value. In the fiscal year under review, valuation loss stemming from impairment of investment securities amounted to 45 million (US$401
thousand) .
(b) Available-for-Sale Securities Sold

Millions of Yen
Category
Equity shares
Securities sold
102
2016
Total gain on
sales
41
Total loss on
sales
0
Securities sold
172
2015
Total gain on
sales
80
Total loss on
sales
Securities sold
$911
2016
Total gain on
sales
$366
Total loss on
sales
0
18. Derivatives
Contractual values or principal equivalents under the contracts of derivatives transactions as of March 31, 2016 and 2015, accounted for by hedge accounting,
are shown below, by each accounting for hedging activity.
March 31, 2016
Millions of Yen
Accounting for hedging activities
Type of derivatives transactions
Hedged items
Principle
Interest rate swap

Payment fixed/Receipt variable
Contractual value
Total
Over 1 year
4,000
Fair value
2,000
March 31, 2015
(24)*1
Millions of Yen
Hedged items
Principle
Interest rate swap

Contractual value
Total
Over 1 year
4,000
Fair value
4,000
March 31, 2016
(37)*1
Hedged items
Principle
Interest rate swap

Contractual value
Total
Over 1 year
$35,714
$17,857
Fair value
$(214)*1
*1 Fair value is based on the price presented by the related financial institutions.
JACCS CO., LTD.
Annual Report 2016
49
19. Retirement Benefits

(a) 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.
(b) Defined Benefit Plans
1. 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
2016
19,942
19,942
1,020
239
2,187
(772)
22,616
Thousand of U.S. Dollars
2015
19,834
(611)
19,223
1,010
154
173
(618)
19,942
2016
$178,054
178,054
9,107
2,134
19,527
(6,893)
$201,929
2. Movement in plan assets, except plan applied simplified method

Millions of Yen
Balance at beginning of fiscal years

Expected return on plan assets
Actuarial gain
Contributions paid by the employer
Benefits paid
Balance at end of fiscal years
2016
26,470
529
(571)
1,014
(772)
26,670
2015
24,000
480
1,612
996
(618)
26,470
2016
$236,339
4,723
(5,098)
9,054
(6,893)
$238,125
3. 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
2016
22,616
(26,670)
(4,054)
(4,054)
(4,054)
(4,054)
2015
19,942
(26,470)
(6,528)
(6,528)
(6,528)
(6,528)
2016
$ 201,929
(238,125)
(36,196)
(36,196)
(36,196)
$ (36,196)
4. Retirement benefit costs

Millions of Yen
2016
Current service cost
Interest cost
Expected return on plan assets
Net actuarial loss amortization
Past service costs amortization
Other
Total retirement benefit costs
50
JACCS CO., LTD.
Annual Report 2016
2015
1,020
239
(529)
(251)
80
559
2016
1,010
154
(480)
(206)
43
521
$ 9,107
2,133
(4,723)
(2,241)
714
$ 4,990
5. Remeasurements of defined benefit plans

The breakdown of items included in remeasurements of defined benefit plans (before tax) is as follows.
Millions of Yen
2016
Past service costs
Actuarial gains and losses
Total balance at end of fiscal years
2015
3,010
3,010
2016
$
(1,234)
(1,234)
26,875
$26,875
6. 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
2016
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
2015
1,350
1,350
2016
(1,660)
(1,660)
$
12,053
$12,053
7. Plan assets
(1) Plan assets comprise:
2016
Bonds
Equity securities
General account
Cash and deposits
Total
2015
42%
18%
38%
2%
100%
42%
21%
32%
5%
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.
8. Actuarial assumptions
The principal actuarial assumptions (presented as weighted averages)
2016
Discount rate
Long-term expected rate of return
Assumed rate of increase in salaries
2015
0.3%
2.0%
3.0%
1.2%
2.0%
3.0%
(C) Defined Contribution Plan

The required contribution amount for the Company and its consolidated subsidiaries to the defined contribution plan are 460 million (U.S.$4,107 thousand)
and 459 million for the years ended March 31, 2016 and 2015, respectively.
20. Stock Options

(a) Stock Option Program Content, Scale and Fluctuations
1. Stock option program content
Date of resolution
Grantees
Type of stock
Number of shares granted*1
Date of grant
Vesting conditions for rights
Qualifying period of service
Exercisable period
August 5, 2015
7 directors of JACCS
(excluding outside director)
10 senior executive officers of JACCS
Common stock
163,000
August 20, 2015
August 5, 2014
Common stock
181,000
August 20, 2014
August 2, 2013
Common stock
96,000
August 19, 2013
August 3, 2012
Common stock
322,000
August 20, 2012
*2
*2
*2
*2
from June 26, 2015 to June 29, 2016
from August 21, 2015 to August 20, 2045 from August 21, 2014 to August 20, 2044 from August 20, 2013 to August 19, 2043 from August 21, 2012 to August 20, 2042
Notes: 1. Figures shown have been converted to number of shares.

2. Holders of subscription rights to shares may exercise subscription rights to shares on or after the day following the loss of their position in the Company. Specifically, this refers
to the position of either director (excluding outside director), Audit & Supervisory Board member, or senior executive officer.
JACCS CO., LTD.
Annual Report 2016
51
2. Stock option program scale and fluctuations

With regard to the number of stock options, the figures presented have been converted to number of shares. The figures presented apply to stock options
outstanding during the fiscal year under review.
(1) Number of stock options
Date of resolution
Before vesting
Outstanding as of March 31, 2015
Granted
Expired
Vested
After vesting
Vested
Rights exercised
Expired
August 5, 2015
August 5, 2014
August 2, 2013
August 3, 2012
163,000
163,000
181,000
181,000
181,000
16,000
165,000
96,000
13,000
83,000
289,000
79,000
210,000
(2) Price information

Date of resolution
Exercise price
Average share price on exercising
options
Fair valuation on grant date
Yen
U.S. Dollars
August 5, 2015 August 5, 2014 August 2, 2013 August 3, 2012

1
1
1
1
August 5, 2015 August 5, 2014 August 2, 2013 August 3, 2012

$0.009
$0.009
$0.009
$0.009
452
428
429
4.036
3.821
3.830
338
399
356
170
3.018
3.563
3.179
1.518
(b) Method of Estimating the Fair Unit Value of Stock Options Granted during the Fiscal Year under Review
1. Option pricing model used: Black-Scholes model
2. Main basic factors and estimation method
Date of resolution
August 5, 2015
47.001%
Share price volatility*1
2
15 years
Expected term*
14 per share
Expected dividends*3
0.760%
Risk-free interest rate*4
Notes: 1. The value was estimated based on the daily closing price of the Companys common stock over a 15-year period (August 20, 2000August 20, 2015).
2. Owing to difficulty in making rational estimates due to a lack of sufficient data, estimates were made based on the assumption that rights would be exercised at the mid-point of
the exercise period.
3. Calculations are based on actual dividends paid for the fiscal year ended March 31, 2015.
4. Yield presented is that for Japanese Government Bonds (15 years remaining to maturity) on August 20, 2015.
(c) Method of Estimating the Number of Vested Stock Options

Since it is fundamentally difficult to reasonably estimate the number of options that will expire in the future, the Company uses a method that only reflects actual
expiration numbers.
52
JACCS CO., LTD.
Annual Report 2016
21. Income Taxes

The Company is subject to a number of income taxes, which, in aggregate, indicate a statutory tax rate in Japan of approximately 33.1% and 35.5% for the
years ended March 31, 2016 and 2015.
(a) Deferred Tax Assets
Significant components of deferred tax assets and liabilities as of March 31, 2016 and 2015 are as follows:
Thousands of
U.S. Dollars
Millions of Yen
2016
2015
2016
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
685
783
1,268
194
388
402
670
614
(1,089)
3,915
(1,206)
2,709
648
855
1,114
37
422
432
662
818
(1,117)
3,871
(1,189)
2,682
$ 6,116
6,991
11,321
1,732
3,464
3,589
5,983
5,482
(9,723)
34,955
(10,767)
$ 24,188
Deferred tax liabilities:

Net defined benefit asset
Other
Less amounts offset against deferred tax assets
Total deferred tax liabilities
Net deferred tax assets
(1,245)
(1,745)
(8)
1,089
(1,909)
800
(2,115)
(2,697)
(9)
1,117
(3,704)
(1,022)
$(11,116)
(15,580)
(72)
9,723
$(17,045)
$ 7,143
(b) Effective Tax Rates

A reconciliation of the statutory tax rates to the effective tax rates for the years ended March 31, 2016 and 2015 are as follows:
2016
Statutory tax rate
Reconciliation:
Expenses not deductible for tax purposes
Nontaxable dividend income
Consolidation eliminations for dividends received
Inhabitants taxes per capita
Increase/decrease in valuation allowance
Difference in tax rate between subsidiaries and parent company
Decrease in deferred tax assets due to tax rate changes
Other
Effective tax rate
2015
33.1%
35.5%
0.7%
(2.4)
2.2
0.8
1.2
(0.1)
1.2
0.1
36.8%
0.7%
(0.6)
0.2
0.9
0.8
0.0
1.2
(0.1)
38.6%
(c) Tax Law Revisions

On March 29, 2016, the Act to Partially Revise the Income Tax Act and Others (Act No. 15 of 2016) and Act to Partially Revise the Local Tax Act and Others
(Act No. 13 of 2016) were enacted by the National Diet. Under these acts, effective from the fiscal year beginning on or after April 1, 2016, 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 32.3% to 30.9% for temporary differences expected to be reversed in the fiscal year beginning on April 1,
2016 and 2017, and to 30.6% for temporary differences expected to be reversed in the fiscal years beginning on or after April 1, 2018.
Due to these changes in taxation rates, deferred tax assets (after deduction of deferred tax liabilities) decreased by 14 million (US$125 thousand), deferred
gains or losses on hedges decreased by 0 million (US$0 thousand), accumulated adjustments for defined benefit plans decreased by 23 million (US$205
thousand), income taxes-deferred increased by 87 million (US$777 thousand), and valuation difference on available-for-sale securities increased by97 million
(US$866 thousand).
JACCS CO., LTD.
Annual Report 2016
53
22. Segment Information

Since the Group has only a single reportable segment, segment information is not presented. Operating revenue to third parties are presented as follows for the
convenience of readers.
Millions of Yen

Operating revenue to third parties
29,710
Installment sales
finance business
21,653
Credit guarantee
Financing
40,967
11,626
Other
Operations
9,717
Total
113,673
Millions of Yen

27,445
Installment sales
finance business
19,480
Credit guarantee
Financing
39,861
12,706
Other
Operations
8,768
Total
108,260

$265,268
Installment sales
finance business
$193,330
Credit guarantee
Financing
$365,777
$103,804
Other
Operations
$86,759
Total
$1,014,938
23. Related Party Transactions

Transactions with a major shareholder of the Company are as follows:
Transaction amount
Name of company
Transactions
Balance at end of fiscal year

Accounts
Millions of yen
(Thousands of U.S. Dollars)
Short-term and long-term

borrowing via loans
The Bank of Tokyo-Mitsubishi

UFJ, Ltd.
Borrowing via commercial

paper
Payment of interest
Loan guarantees (net)

Receipt of guarantee fee
130,530
($1,165,446)
130,000
(1,160,714)
1,700
(15,179)
9,440
(84,286)
273
(2,438)
Millions of yen
16,236
($144,964)
Current portion of long-term

loans payable
38,500
(343,750)
73,700
(658,036)
Commercial papers
70,000
(625,000)
Prepaid expenses
Accrued expenses
Accounts payablecredit guarantee
31
(277)
9
(80)
36,390
(324,911)
Notes: 1. Transaction terms and method of determining transaction terms

Interest rates on borrowings from The Bank of Tokyo-Mitsubishi UFJ, Ltd. are general money market rates. Borrowings from The Bank of Tokyo-Mitsubishi UFJ, Ltd. these are
determined by resolutions of the Board of Directors and the Companys rules in the same manner as fundraising carried out from other banks.
Loan guarantee fee rates are part of general terms of business.
2. Only material transactions are presented.
54
JACCS CO., LTD.
Annual Report 2016

Transaction amount
Name of company
Transactions
Accounts
Millions of yen
Short-term and longterm borrowing via loans

The bank of TokyoMitsubishi UFJ, Ltd.
Millions of yen
39,986
Borrowing via
commercial paper
147,000
Payment of interest
1,639
6,463

loans payable
20,777
84,200
Commercial papers
45,000
Prepaid expenses
15
Accrued expenses
20

Interest rates on borrowings from The Bank of Tokyo-Mitsubishi UFJ, Ltd. are general money market rates. Borrowings from The Bank of Tokyo-Mitsubishi UFJ, Ltd. these are
determined by resolutions of the Board of Directors and the Companys rules in the same manner as fundraising carried out from other banks.
Transaction with a subsidiary of the Companys major shareholder are as follows:

Transaction amount
Name of company
Transactions

Accounts
Millions of yen
Millions of yen
29,300
($261,607)

Short-term and long-term
borrowing via loans
424,200
($3,787,500)

loans payable
29,700
(265,179)
12,000
(107,143)
4
(36)

Mitsubishi UFJ Trust and
Banking Corporation
Borrowing via commercial

paper
Payment of interest

37,000
(330,357)
463
(4,134)
562
(5,018)
3,690
(32,946)
4,900
(43,750)
Commercial papers
Prepaid expenses
Accrued expenses
3
(27)
125,253
(1,118,330)

Interest rates on borrowings from Mitsubishi UFJ Trust and Banking Corporation are general money market rates. Borrowings from Mitsubishi UFJ Trust and Banking Corporation,
these are determined by resolutions of the Board of Directors and the Companys rules in the same manner as fundraising carried out from other banks.
JACCS CO., LTD.
Annual Report 2016
55

Transaction amount
Name of company
Transactions
Accounts
Millions of yen
Millions of yen
Short-term and longterm borrowing via loans
Mitsubishi UFJ
Trust and Banking
Corporation
192,000
Borrowing via
commercial paper
26,000
Payment of interest
480
24,800

loans payable
5,400
26,600
Commercial papers
7,000
Prepaid expenses
Accrued expenses
8,898
3,423
133,670

Interest rates on borrowings from Mitsubishi UFJ Trust and Banking Corporation are general money market rates. Borrowings from Mitsubishi UFJ Trust and Banking Corporation,
these are determined by resolutions of the Board of Directors and the Companys rules in the same manner as fundraising carried out from other banks.
Transactions with an Audit & Supervisory Board Member (only in the case of individuals) of the Company are as follows:
Transaction amount
Name of individual
Transactions

Accounts
Millions of yen
Trading relationship with Fujisaki Co., Ltd.

Saburosuke Fujisaki
Commissions received in accordance with the
member-store contract between JACCS and
Fujisaki Co., Ltd.
Millions of yen
Notes payable
trade
489
($4,366)
Accounts payable
trade
188
(1,679)
66
($589)

Same as for general business partners
2. Trading with the Company stipulated above is conducted on a third-party (arms length) basis.
3. Although the Company applies the net-of-tax method to accounting treatment of consumption tax, balances at the end of the period include consumption tax.
56
JACCS CO., LTD.
Annual Report 2016

Transaction amount
Name of individual
Transactions
Accounts
Millions of yen
Millions of yen
Trading relationship with Fujisaki Co., Ltd.

Saburosuke Fujisaki
Notes payable
trade
507
Accounts payable
trade
207
67
Commissions received in accordance with the
member-store contract between JACCS and
Fujisaki Co., Ltd.

Same as for general business partners
2. Trading with the Company stipulated above is conducted on a third-party (arms length) basis.
3. Although the Company applies the net-of-tax method to accounting treatment of consumption tax, balances at the end of the period include consumption tax.
24. Investment and Rental Properties

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

Yen
2016
Net assets per share
Net income per shareBasic
Net income per shareDiluted
U.S. Dollars
2015
772.81
44.02
43.88
2016
772.67
41.42
41.30
The basis for calculating net income per share and net assets per share for the years ended March 31, 2016 and 2015 are as follows:
Net income per share
Millions of yen
2016
2015
Net income attributable to owners of the parent
7,569
7,107
Net income applicable to common shares
7,569
7,107
Average number of common shares during period (thousands of shares)
171,969
171,600
Increase in number of common shares: (thousands of shares)
538
476
Subscription rights to shares: (thousands of shares)
(538)
(476)
$6.90
0.39
0.39
2016
$67,580
67,580
Net assets per share

Millions of yen
2016
Total net assets
Amounts deducted from total net assets:
Subscription rights to shares
Net assets applicable to common shares
Number of common shares at the end of the fiscal year used in calculation of net
assets per share (thousands of shares)
2015
133,283
172
(172)
133,111
132,846
137
(137)
132,709
2016
$1,190,026
1,535
(1,535)
1,188,491
172,242
171,753
26. Significant Subsequent Events

Not applicable
JACCS CO., LTD.
Annual Report 2016
57
INDEPENDENT AUDITORS REPORT
58
JACCS CO., LTD.
Annual Report 2016
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JACCS CO., LTD.
Annual Report 2016
59
ORGANIZATION
(As of July 1, 2016)
General Meeting of Shareholders

Audit & Supervisory Board
Shopping Credit Promotion Department

West Japan Shopping Credit Promotion Department
Shopping Credit Planning Department
Auto Loans Business Department
Board of Directors
President, CEO and COO
Audit Office
Credit Card Promotion Department

Credit Card Planning Department
Deputy President, CFO

Management Committee
Payments Business Department
Business Strategy Department
Housing Loan Guarantee Business Department
Business Supervisory Office
Guarantee Business Department
Web Solutions Department

Customer Service Department
Credit Screening and Operation Department
Credit Management Department
Corporate Planning Department

Group Strategic Business Department
International Business Planning Department

General Affairs Department
Personnel Department
Finance Department
Accounting Department
Systems Planning Department
Systems Development Department
Systems Management Department

Compliance Supervisory Department
Customer Support Office
60
JACCS CO., LTD.
Annual Report 2016
First Shopping Credit Promotion Section

Second Shopping Credit Promotion Section
West Japan Shopping Credit Promotion Section
West Japan Credit Card Promotion Section
Shopping Credit Planning Section
Auto Loans Promotion Section
Auto Loans Planning Section
First Credit Card Promotion Section
Second Credit Card Promotion Section
Credit Card Planning Section
Credit Card Promotion Section
Credit Card Network Section
Member Store Management Group
Payments Promotion Section
Payments Planning Section
Housing Loan Guarantee Planning and Promotion Section
Housing Loan Guarantee Management Operations Section
Guarantee Business Section
Finance Operations Center
Tokyo Guarantee Center
Web Solutions Planning Section
Customer Service Section
Credit Card Security Center
Tokyo Customer Center
Osaka Customer Center
Credit Screening Planning Section
Operation Training Section
Operation Supervisory Section
Central Credit Screening Center
Osaka Credit Screening Center
Tokyo Credit Center
Osaka Credit Center
Mercedes-Benz JACCS Loan Center
VFJ Support Center
DAIHATSU Credit Center
Harley-Davidson Credit Center
Credit Planning Section
Claims Management Section
Contact Center
Counseling Center
Legal Center
Compliance Management and Credit Center
Corporate Planning Section
Public Relations Section
New Business Development Section
Group Business Planning Section
MUFG Alliance Promotion Office
International Business Planning Section
General Affairs Section
General Affairs Document Section
Personnel Section
Human Resources Development Section
Finance Section
Account Settlement Center
Accounting Section
Budget Strategy Section
Accounting Operations Center
Planning Supervisory Section
Systems Promotion Section
Information Processing Center
First Development Section
Second Development Section
Third Development Section
Common Development Section
Platform Management Section
Systems Operation Section
Compliance Supervisory Section
Information Management Section
Risk Supervisory Section
Legal Section
Housing Loans Center
HISTORY
June 2014
Celebrated the 60th anniversary
of JACCS establishment
May 2014
Newly merged PT Mitra Pinasthika
Mustika Finance (MPMF) commenced
Signing ceremony for the MPMF

merger agreement
operations
Apr. 2014
Renewal of the corporate logo
Dec. 2012
Acquired a 40% equity stake in Indonesian
June 2010
company PT Sasana Artha Finance
Established overseas subsidiary JACCS

International Vietnam Finance Co., Ltd.
Apr. 2008
Took over the shopping credit business of
Mar. 2008
Mitsubishi UFJ NICOS Co., Ltd.
JACCS became an equity-method affiliate of The Bank of

Tokyo-Mitsubishi UFJ, Ltd., through a third-party allocation
June 2004
Current Tokyo head office, Ebisu Neonato
of new shares
Celebrated the 50th anniversary

of JACCS establishment
2000
Nov. 1994
May 2001
Began operating a state-of-the-art core
computer system called JANET, the first
Head office transferred to the Companys new main
such online system in the industry to run
building, Ebisu Neonato, in Shibuya-ku, Tokyo
24-hours-a-day, 365-days-a-year
Apr. 1989
1990
Jan. 1991
JANET
Began issuing JACCS JCB Card
Began issuing internationally accepted credit

cards, JACCS Visa Card and JACCS
MasterCard
Apr. 1983
JACCS first internationally

accepted credit cards
1980
Established the Housing Loan Center

(currently the Tokyo Housing Loan Center)
Sept. 1978
Listed on the First Section of the Tokyo
Stock Exchange
Apr. 1976
Company name was changed to JACCS Co., Ltd.
Apr. 1973
Shares listed on the
Aug. 1975
Sapporo Securities
Head office functions transferred to Tokyo
Exchange
1970
Tokyo head office
July 1972
Established the Tokyo Office (currently the Tokyo Branch)
as the Companys first presence in the Kanto region
Sapporo Securities Exchange
1960
Dec. 1959
Mar. 1969
In collaboration with large manufacturers, began
providing a full-fledged shopping credit service
Began a credit guarantee service

for financial institutions, the first
service of its type in Japan
July 1959
To coincide with the 5th anniversary of
establishment, the Companys name was
changed to Kitanihon Sinyohanbai Co., Ltd.
1950
Corporate brochures
June 1954
Founders
Depart Sinyohanbai Co., Ltd., established in Hakodate, Hokkaido, with paid-in capital of 3.3
Masajiro Ibe
million. Began monthly installment credit service for use at department stores based on the
Tatsuya Watanabe
issuance of installment-shopping coupons to members who have joined through their workplace
Kaname Yamane
JACCS CO., LTD.
Annual Report 2016
61
CORPORATE DIRECTORY
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/
Founded: June 29, 1954
branch office. In all, there are 65 JACCS offices nationwide.

A
Hokkaido Area
Tohoku Area
Paid-in Capital:
Kita-Kanto Area
16,138,182,260 (US$144 million)
Shutoken Area
Chubu Area
Registered Head Office:
Kinki Area
2-5, Wakamatsu-cho, Hakodate,
Chugoku-Shikoku Area
Hokkaido 040-0063, Japan
Kyushu Area
C
E
Principal Executive Office:
Ebisu Neonato Bldg.,

H
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:
Chubu Area:
Business Volume:
Nagoya Hirokoji Bldg., 9th Floor,
(Year ended March 31, 2016)
3-1, Sakae 2-chome, Naka-ku,
3,404,510 million (US$30,397 million)
Nagoya 460-0008
Sendai First Tower, 17th Floor,
Phone: (052) 221-7985
1-1, Ichiban-cho 3-chome,

Aoba-ku, Sendai 980-0811
Phone: (022) 706-1191
Number of Employees:
(Year ended March 31, 2016)
Kinki Area:
2,712 (Parent)
Meiji Yasuda Seimei Osaka
3,710 (Consolidated)
Midousuji Bldg., 8th Floor,

Kita-Kanto Area:
Sino Omiya North Wing Bldg.,
18th Floor,
1-1 Fushimi 4-chome, Chuo-ku,
Network:
Osaka 541-0044
Branches & Sales Offices: 65
Phone: (06) 6201-6350
10-16, Sakuragi-cho 1-chome,

Omiya-ku, Saitama 330-9696
Phone: (048) 644-1722
Shutoken Area:
Shin Meguro Tokyu Bldg.,
7th Floor,
Associated Companies:
Chugoku-Shikoku Area:
Domestic:
Asahi Seimei Hiroshima Ebisu-cho Bldg.,
9th Floor,
4-21, Ebisu-cho, Naka-ku,
Hiroshima 730-0021
Phone: (082) 241-9955
25-2, Kami-Osaki 2-chome, Shinagawa-ku,

Tokyo 141-8659
Phone: (03) 5487-4611
Overseas:
Kyushu Area:
Hakata Ekimae Sukuea Bldg., 9th Floor,
21-28, Hakata-Ekimae 1-chome,
Hakata-ku, Fukuoka 812-0011
MMPC Auto Financial Services Corporation
Phone: (092) 433-1290
62
JACCS CO., LTD.
Annual Report 2016
INVESTOR INFORMATION
(As of March 31, 2016)
Number Of Shareholders:
6,507
Shares Outstanding:
175,395,808
Stock Listings:
Tokyo Stock Exchange (First Section)
Transfer Agent:
Mitsubishi UFJ Trust and Banking Corporation
4-5, Marunouchi 1-chome, Chiyoda-ku,
Tokyo 100-8212, Japan
Principal Shareholders:
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
20.00%
Japan Trustee Services Bank, Ltd. (Trust Account)
10.02
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 Account)
3.51
Shareholding Association of JACCS
2.84
JACCS Co., Ltd. Employee Stock Ownership Association
2.07
Nippon Life Insurance Company
1.67
Mitsubishi UFJ Trust and Banking Corporation
1.60
Mizuho Bank, Ltd
1.50
Total
50.77%
Common Stock Price Range:
(Tokyo Stock Exchange)
Stock Held by Investor Type
(Years ended March 31)
2014
High
707
609
528
533
First Quarter
Second Quarter
Third Quarter
Fourth Quarter
2015
Low
433
425
426
404
High
525
661
697
666
Other Corporations
3.6%
2016
Low
401
483
506
534
High
647
613
524
487
Low
571
433
413
347
(Yen)
(Yen)
1,000
23,000
Monthly Range of Stock Price (Left Scale)
Securities Companies
1.0%
Overseas
Institutions
11.2%
Individuals and Others

17.7%
Financial Institutions
66.5%
Nikkei 225 Stock Index (Right Scale)
800
20,000
600
17,000
400
14,000
200
11,000
8,000
2014
2015
2016
Cash Dividends:
(Years ended March 31)
Yearly
Interim
2014
14.00
6.00
2015
14.00
7.00
2016
14.00
7.00
JACCS CO., LTD.
Annual Report 2016
63
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
Printend in Japan

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Annual Report 2016

For the Fiscal Year Ended March 31, 2016

JACCS Co., Ltd., is a consumer nance company and a

Total Operating Revenue

member of the Mitsubishi UFJ Financial Group, Inc. (MUFG).

Hokkaido, in 1954. Since then, under a founding philosophy

that values trust and reliability, JACCS has continued to expand

into growth markets in Asia. With a total volume of new contracts

JACCS main businesses comprise the credit business,

includes credit guarantees and other operations. JACCS

Net Income Per Share

JCB brands, and has a membership base of approximately

JACCS launched its overseas operations in 2010 with

its entry into the motorcycle sales nance market in Vietnam.

in the Association of Southeast Asian Nations (ASEAN) region.

JACCS Founding Philosophy

JACCS CO., LTD.

Annual Report 2016

CREATING VALUE for Our Sustainable Future

Becoming a Leading Asian Consumer Finance Brand

Our long-term vision under ACT- , our medium-term business plan, is

We accordingly look to expand in markets within the ASEAN region.

JACCS CO., LTD.

Annual Report 2016

Number of transactions handled

Contracts (Left scale)

Our Deferred-Payment Settlement Service

ATODENE Deferred-Payment Settlement System

Trade and Industry estimated that in 2015 Japans e-commerce market

and credit card industry to begin offering deferred-payment settlement

temporarily cover payments to mail order and online merchants. Users

Through our ATODENE deferred-payment settlement service, we

JACCS CO., LTD.

Annual Report 2016

CREATING VALUE for Our Sustainable Future

Building Better Workplaces for Women

managers. We also maintain programs to assist employees with parenting

regardless of gender, to ensure the Companys ongoing development.

We have thus undertaken various initiatives in recognition of the

In view of the importance of mental and physical well-being in

importance of better leveraging the capabilities of women in all operations

workplaces, we have taken a broad range of steps to maintain the mental

as we expand and diversify our business. We enhance career prospects

and physical well-being of all employees, notably by preventing overwork

and offering stress checks and consultations.

We also foster understanding of the diverse contributions of women

office globally) but also for regional employees (employees recruited on

in our corporate culture, such as by showcasing their achievements in our

the basis that they will be assigned to work in a specified region). We

JACCS CO., LTD.

Annual Report 2016

CREATING VALUE FOR OUR SUSTAINABLE FUTURE

NINE-YEAR FINANCIAL SUMMARY

BUSINESS PLANS OF THE PAST AND PRESENT

JACCS GROUP AT A GLANCE

JACCS CO., LTD.

Annual Report 2016

NINE-YEAR FINANCIAL SUMMARY

Years ended March 31

Summary of operations for the year:

BUSINESS PLANS OF THE PAST AND PRESENT

10th Medium-Term Business Plan

Reform of cost structures / enhancement of

Economic and Business Sector Environment