Message from the President & CEO

First of all, I would like to express my sincere appreciation to your support.

We purchased financially strapped banks in Asian countries through M&As. By rehabilitating their businesses and enhancing corporate values for better financial strength, we are seeking operation of community-based banks that meet the needs of customers.

In October 2012, we commenced a project to revitalize our South Korean savings banks. Now, we have grown into an entity that received the first award as savings bank in the 2016 FIRST BRAND AWARDS KOREA, sponsored by (Korea) Consumers Council. This endorses our quality, service and prices are highly evaluated in South Korea.

We expect Indonesian business to become profitable this year. PT Bank J Trust Indonesia, Tbk. ("BJI") was a bankrupt commercial bank 18 months ago. Although the Indonesian government limits equity holding by foreign investors, its special program exceptionally allowed us to have almost 100% of the bank's shares. We believe that, with this controlling share, we can maximize our expertise developed in Japan and South Korea. We are also confident that we can expand our business in the promising Indonesian market along with 255 million population, the largest in Southeast Asia.
We will continue to explore opportunities for utilizing our business models both at home and overseas. Not constrained by existing practices or paradigms of banks, we will develop financial businesses proactively going forward.

For domestic financial business, we exited the unsecured loan business for individual customers. Instead, real-estate related credit guarantee business and servicer business serve key earnings drivers for the group.

Based in Japan, we will deliver Japanese high quality business to Asia.

Thank you again for your continued assistance.

July 2016