Jaccs Ar 2014

60 YEARS AND BEYOND
Annual Report 2014

For the Fiscal Year Ended March 31, 2014
Profile
JACCS Co., Ltd., started out as Depart Sinyohanbai Co., Ltd., in Hakodate,
Credit
Business
Hokkaido, in 1954. In the 60 years since then, JACCS has continued to

expand its business nationwide in Japan under a founding philosophy that
values trust and reliability. With a total volume of new contracts exceeding
2,784 billion, JACCS is one of the leading names in Japans consumer
Credit Card
Business
Focusing management
resources on growth in
our three core operations
Financing
Business
credit sector.
JACCS issues standard credit cards under the Visa, MasterCard,
Developing our overseas

operations and
new businesses
and JCB brands, and has a membership base of approximately 6,800

thousand cardholders, including those with cards from affiliate partners.
JACCS became a member of Mitsubishi UFJ Financial Group, Inc.
Overseas
Operations
New
Businesses
(MUFG), in 2008 through a third-party allocation of new shares.

In April 2012, JACCS launched a new three-year medium-term
business plan, ACT11. This plan sets a medium- to long-term vision
of becoming an innovative consumer finance company with its roots
in Japan, and targets accelerating growth by turning around and
expanding operating revenue (top line). ACT11 encompasses the
revitalization of JACCS existing businesses, the acceleration of overseas
business expansion, and the development of new businesses.
In overseas operations, the JACCS Group commenced with the
provision of motorcycle loan services in Vietnam in 2010, and continued
To coincide with the 60th anniversary of JACCS founding, the

Company introduced a new corporate logo design, replacing
the logo it has used for 38 years since adopting its current
corporate name. The new logo was launched in April 2014.
The new design incorporates elements that express
modernity, innovation, and speed, each of which is a feature
of JACCS long-term vision.
its expansion in the ASEAN region through the launch of business

operations in Indonesia in 2013, where it is progressively increasing its
product lineup. In new businesses, JACCS entered the prepaid card
business in 2013.
Management Principles
With core businesses focused on the consumer credit industry, JACCS continuously strives for excellence in its credit systems.
JACCS helps consumers realize rich, satisfying lives.
JACCS contributes to the enhancement of its business partners operating performance.
JACCS approaches all tasks with enthusiasm and good faith.
Contents
Growth Trajectory
Corporate Governance
16
Progress of 2014
Founders / Board of Directors and Audit & Supervisory Board Members
18
Five-Year Financial Highlights
Executive Officers
19
Operational Highlights
CSR Activities
20
To Our Stakeholders
Financial Information
21
Expanding Market Presence in Indonesia
Corporate Directory
50
Creating New Businesses
11
Investor Information
51
Review of Operations
12
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 2014
JACCS was founded in June 1954 as Depart Sinyohanbai Co., Ltd., in Hakodate, Hokkaido.
Growth Trajectory
The Company celebrated its 60th anniversary in June 2014.
60 YEARS
AND BEYOND
Looking back over the most recent decade, the Company has faced a range of challenges
in its operating environment. These have included changes in laws covering the credit industry,
reductions in the maximum allowable interest rates, and claims for the repayment of excess
interest, which have had a severe effect on the entire industry.
Against this backdrop, in the fiscal year ended March 31, 2008, the Company formed
a business and capital alliance with The Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU), and
Mitsubishi UFJ NICOS Co., Ltd., and became an equity-method affiliate of BTMU. JACCS
also focused on further strengthening its management structure to ensure adaptability to
environmental change. This included an overhaul of the Companys cost structure and the
June 1954
July 1972
Apr. 1976
Apr. 1983
Depart Sinyohanbai Co., Ltd., established in Hakodate,
Established the Tokyo Office (currently
Company name was changed
Established the Housing Loan Center
Hokkaido, with paid-in capital of 3.3 million. Began monthly
the Tokyo Branch) as the Companys
to JACCS Co., Ltd.
(currently the Tokyo Housing Loan Center)
installment credit service for use at department stores based
first presence in the Kanto region
on the issuance of installment-shopping coupons to members

who have joined through their workplace
1950
Corporate brochures
1960
1970
1980
July 1959
Mar. 1969
Apr. 1973
Sept. 1978
Apr. 1989
To coincide with the 5th anniversary
In collaboration with large manufacturers,
Shares listed on the Sapporo
Listed on the First Section of the Tokyo
Began issuing internationally accepted
of establishment, the Companys
began providing a full-fledged shopping
Securities Exchange
Stock Exchange
credit cards, JACCS Visa Card and
name was changed to Kitanihon
credit service
JACCS MasterCard
Aug. 1975
Sinyohanbai Co., Ltd.
Head office functions transferred to Tokyo
Dec. 1959
Began a credit guarantee service for
financial institutions, the first service of
its type in Japan
Sapporo Securities Exchange
Tokyo head office
JACCS first internationally

accepted credit cards
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 2014
implementation of strategies to improve business profitability.

In fiscal 2013, on a non-consolidated basis, the Company recorded an increase in total operating
revenue for the first time in seven fiscal years, and began to see other positive signs that it was on the
path to achieving sustainable profit growth. JACCS also worked to accurately meet customer needs
through the accelerated development of its overseas operations and the creation of new businesses.
These moves were part of strategic initiatives designed to pave the way for dynamic growth.
Underpinned by JACCS founding philosophy, the Company is striving to realize the mediumto long-term vision of becoming an innovative consumer finance company with its roots in Japan.
As the Company looks toward its 70th and 80th anniversaries, and further ahead to its centenary,
Ceremony to commemorate
JACCS 60th anniversary
everyone at JACCS is committed to achieving steady progress toward the Companys vision and goals.
Jan. 1991
May 2001
Mar. 2008
Dec. 2012
Apr. 2014
Began issuing JACCS JCB Card
Began operating a state-of-the-art core
JACCS became an equity-method affiliate
Acquired a 40% equity stake in
Renewal of the corporate logo
computer system called JANET, the first
of The Bank of Tokyo-Mitsubishi UFJ,
Indonesian company PT Sasana Artha
such online system in the industry to run
Ltd., through a third-party allocation of
Finance
24-hours-a-day, 365-days-a-year
new shares
1990
2000
Gearing up for the Next
Nov. 1994
June 2004
Apr. 2008
June 2010
May 2014
Head office transferred to the Companys
Celebrated the 50th anniversary of
Took over the shopping credit business of
Established overseas subsidiary JACCS
Newly merged PT Mitra
new main building, Ebisu Neonato, in
JACCS establishment
Mitsubishi UFJ NICOS Co., Ltd.
International Vietnam Finance Co., Ltd.
Pinasthika Mustika Finance
Shibuya-ku, Tokyo
(MPMF) commenced operations
June 2014
Celebrated the 60th anniversary of
JACCS establishment
Current Tokyo head office, Ebisu Neonato
Signing ceremony for the MPMF

merger agreement
JANET
Total Operating Revenue

Billions of Yen
200
150
Turnaround
100
50
Medium-term
business plans
2006
2007
Growing 1
2008
2009
2010
2011
2012
2013
VIC10
2014
2015
Target
ACT11
Reinforcement of business foundations
JACCS CO., LTD.
Annual Report 2014
Progress of 2014
JACCS CO., LTD. and Consolidated Subsidiaries
Year ended March 31, 2014
Number of JACCS Cardholders
Total Volume of New Contracts
Volume of New Contracts:

Credit Card
-6.2%
12.3%
14.4%
6,828 thousand
2,784.5 billion
899.9 billion

Installment Sales Finance

Credit Guarantee

Financing
38.5%
8.0%
-4.8%
293.0 billion
687.6 billion
79.0 billion
Operating Income
Ordinary Income
1.1%
30.0%
4.1%
104.1 billion
12.2 billion
12.2 billion
Net Income
Net Income Per Share
Cash Dividends Per Share
-14.9% -13.7% 27.3%

6.5 billion
JACCS CO., LTD.
Annual Report 2014
37.71
14.00
Five-Year Financial Highlights

Thousands of
U.S. Dollars
Millions of Yen
Years ended March 31
2010
2011
2012
2013
2014
2014
Summary of operations for the year:

Number of JACCS cardholders (Thousands)
9,920
9,601
8,419
7,281
6,828
2,316,012
2,328,294
2,387,501
2,480,470
2,784,532
$27,299,333
Volume of new contracts: Credit card
704,064
738,947
749,720
786,669
899,957
8,823,107
Volume of new contracts: Installment sales finance
241,957
227,300
230,352
211,539
293,029
2,872,833
Volume of new contracts: Credit guarantee
515,934
551,465
603,873
636,770
687,669
6,741,852
Volume of new contracts: Financing
178,181
118,673
86,418
83,022
79,010
774,607
Volume of new contracts: Other operations
675,874
691,907
717,136
762,469
824,866
8,086,921
Total operating revenue
Total volume of new contracts
127,101
116,241
107,384
102,950
104,134
1,020,921
Operating income
8,845
3,137
10,972
9,413
12,236
119,960
Ordinary income
10,433
5,479
13,271
11,750
12,238
119,980
3,569
4,398
6,822
7,642
6,504
63,764
2,827,806
2,786,288
2,725,816
2,718,518
2,896,405
$28,396,127
103,273
105,261
111,348
117,486
122,712
Net income
At year-end:
Total assets
Total net assets
Yen
1,203,058
U.S. Dollars
Per share data:

Net income
20.39
25.12
38.97
43.72
37.71
$0.36
Net assets
589.74
601.13
636.17
678.38
715.38
7.01
5.00
5.00
10.00
11.00
14.00
0.13
Cash dividends
Note: The U.S. dollar amounts in this report represent translations of Japanese yen, for convenience only, at the rate of 102= U.S.$1.00, the prevailing approximate exchange rate at March 31, 2014.
Operational Highlights
2013
Began issuing Japans first official Ferrari-branded credit card. Cardholders enjoy special benefits, including discounts when making purchases at
Ferrari S.p.A.s official online store.
Launched a business collaboration with The Shikoku Bank, Ltd., involving guarantees for personal loans specifically catering to seniors receiving a
June
pension. The product is designed so that loan repayments are made in months when pension payments are received (even-numbered months).
Collaboration with Visa Worldwide (Japan) Co., Ltd., and Citibank Japan, Ltd., in the prepaid card business. In July, began issuing Japans first multiJune
currency prepaid card.
Commenced a business collaboration with The Bank of Yokohama, Ltd., involving guarantees for a personal unsecured loan product that covers
September
auto loans, education loans, and home renovation loans.
Commenced in-store credit card membership applications using tablet computers. By moving to a paperless system, security is enhanced in the
November
management of personal information and the operational burden of application processing is reduced.
Commenced the industrys first rent guarantee system to include insurance for tenant suicide and solitary death. The rent guarantee system is
December combined with Owners Safety* and fire insurance.
April
* Note: Owners Safety is an insurance product covering the event of a solitary death, suicide, or death due to crime within a rented housing property. The insurance provides the property
owner with indemnification for rent loss due to property vacancy and costs to restore the property to its original state. The insurance product was developed by ACE Insurance.
2014
February
February
February
March
Reorganized the Groups Indonesian finance company with the aim of expanding the sales network and service lineup. (Please refer to the special
feature on page 9 for details.)
Alliance with Kakaku.com, Inc. Began issuing REX CARD Lite, which does not incur annual membership fees and has one of the highest loyalty point-earning
ratios of any Japanese credit card.
Began issuing The Beatles Club Membership Card on behalf of the official Beatles fan club in Japan. The membership card includes a
credit card.
Began issuing the Visa TravelMoney Gonna prepaid card, which includes foreign currency exchange functions. (Please refer to the special feature
on page 11 for details.)
JACCS CO., LTD.
Annual Report 2014
To Our Stakeholders
Operating Performance: Increase in Operating Revenue Coupled with Significant

Progress in Business Development
In fiscal 2013, ended March 31, 2014, JACCS achieved a turnaround in operating revenue, while both
operating income and ordinary income also increased.
We addressed key tasks in each of the Groups three main businessesthe credit business, credit
card business, and financing businessand worked to expand new business partnerships and further
deepen existing partnerships. Driven by expectations generated by the economic program of Prime
Minister Shinzo Abes administration (often referred to as Abenomics) as well as extra demand in the
lead-up to the increase in the consumption tax rate, the total volume of new contracts grew steadily.
These factors contributed to the realization of a turnaround in the Groups top line (operating revenue).
In the Groups overseas operations, consolidated subsidiary JACCS International Vietnam Finance
Co., Ltd. (JIVF), expanded its sales territory, leading to an increase in motorcycle dealers joining its
member network as well as a rise in the number of loans handled. In Indonesia, the Companys equitymethod affiliate PT Sasana Artha Finance (SAF) agreed in February 2014 to a merger with finance
company PT Mitra Pinasthika Mustika Finance (MPMF). The latter company is a member of the corporate
JACCS CO., LTD.
Annual Report 2014
group led by JACCS Indonesian business partner PT Mitra Pinasthika Mustika (MPM). Through this
merger, in addition to the motorcycle sales finance business, JACCS Indonesian operations will be able to
expand into the auto sales finance business and the leasing business. For further details on initiatives in
the Groups Indonesian business, please refer to page 9 of this report.
In fiscal 2013, we made substantial progress in the development of new businesses. In July 2013,
we began issuing a prepaid card specifically for overseas use, called Visa TravelMoney Gonna. We
followed this up in March 2014 by commencing the issue of a new version of Visa TravelMoney Gonna
with expanded functions, including foreign currency exchange and shopping functions that can be used
at Visa-affiliated merchants both in Japan and overseas. This marked progress in our expansion of the
cashless settlement business. For further details on initiatives in the Groups new businesses, please refer
to page 11 of this report.
As a result of the factors outlined above, on a consolidated basis, the total volume of new contracts
increased 12.3% compared with the previous fiscal year, to 2,784,532 million, total operating revenue
rose 1.1%, to 104,134 million, and ordinary income increased 4.1%, to 12,238 million. Accompanying
the absorption-type merger with consolidated subsidiary JNS Collection Service Co., Ltd., on April 1,
2013, the Company reversed a portion of its deferred tax assets. As a result, there was an increase in
income taxes-deferred, and net income decreased 14.9% compared with the previous fiscal year, to
6,504 million.
Progress in the Second-Year of ACT11: Turnaround in Operating Revenue

Under JACCS three-year medium-term business plan ACT11spanning the three fiscal years from
April 1, 2012, to March 31, 2015we have set three core policies:
Accelerating growth by turning around and expanding operating revenue (top line)
Further strengthening our management structure to ensure adaptability to environmental change
Continuously enhancing our compliance system
Ordinary Income
(Billions of Yen)
(Billions of Yen)
150
15
120
102.9
104.1
106.9
60
30
2013
2014
2015
Target
12.2
2013
2014
12.6
12
90
11.7
2015
Target
JACCS CO., LTD.
Annual Report 2014
In fiscal 2013the second year of ACT11with regard to the first core policy, we achieved a
turnaround in operating revenue driven by such factors as an increase in shopping credits in the credit
business, an expansion in auto loans in the credit business, an increase in the volume of new contracts
and the balance of revolving payments in the credit card business, and a build-up in the balance of loan
guarantees for banks in the financing business.
With regard to the second core policy, through progress in enhancing the quality of our credit
portfolio, we achieved a decrease in bad debt-related expenses for the second consecutive fiscal year.
A build-up in the balance of deferred installment income also contributed to progress in the further
strengthening of our management structure.
With regard to the third core policy, we implemented such measures as the establishment of the
compliance credit control center in February 2014 and other initiatives to build an advanced compliance
system, the preparation of a Business Continuity Plan (BCP) and the implementation of related
training programs to strengthen our business continuity system, and the promotion of corporate social
responsibility (CSR) through various programs that contribute to society.
In Indonesia, through a reorganization of our affiliated finance

company, we will enter the auto sales finance business.
Outlook for Fiscal 2014, Ending March 31, 2015
In the fiscal year ending March 31, 2015the final year of ACT11we are shifting our focus from
a turnaround to an expansion in operating revenue, as we gear up for the next stage of growth.
To accomplish this shift to a new growth phase, within the credit business, in shopping credits
JACCS is undertaking measures to expand its lineup of Web-based products, including through the
development of new Web products and quality enhancement of existing Web products. In addition, we
are working to further expand the volume of new contracts in housing-related products by bolstering
the volume of housing renovation loans and other measures. In the auto loan field, JACCS is aiming to
expand its market share by increasing the volume of new contracts in strategic productssuch as the
WeBBy Auto loan application serviceand by rolling out various initiatives targeting auto dealers.
In the credit card business, we are implementing such measures as a strategy of developing
relationships with new business partners that are likely to provide opportunities to expand the number
of high-usage card members, the development of concept cards, and the build-up of the balance of
revolving payments.
In the financing business, in personal loan guarantees for banks, we are targeting an increase in
the balance of guarantees by strengthening our alliance with The Bank of Tokyo-Mitsubishi UFJ, Ltd.,
and other measures. In housing loan guarantees, we will work to maintain a balance of loan guarantees
over one trillion yen and retain our top market share. In bill collection services, we are striving to secure
stable revenue by increasing the number of invoices handled based on a strategy targeting the regular bill
payment market.
In new businesses, the Group is looking to enter the market for deferred-payment settlement
services and is promoting its prepaid card business.
In overseas operations, in Vietnam we are implementing strategies to increase the volume of
JACCS CO., LTD.
Annual Report 2014
Expanding Market Presence

in Indonesia
JACCS is accelerating its overseas business development focusing on
making it one of Indonesias largest finance companies with an
the Asia region. In fiscal 2013, JACCS reorganized its Group finance
extensive sales network covering the entire country. Previously, SAF
company in Indonesia with the aim of expanding operations there.
was focused mainly on the eastern Java region, primarily providing

sales finance for Honda motorcycles. Through the merger with MPMF,
Merger of PT Sasana Artha Finance and PT Mitra Pinasthika
which has sales finance and lease operations throughout Indonesia, the
Mustika Finance
company will work to further increase the scale of its operations and
In 2012, JACCS acquired a 40% equity stake in Indonesian finance
maximize synergies. This will specifically involve ongoing growth in the
company PT Sasana Artha Finance (SAF), and began participating in
Honda motorcycle sales finance business, and sales finance for Nissan
the companys management. In February 2014, JACCS reached an
automobilesa business that MPM has newly entered. The Indonesian
agreement with its Indonesian business partner, PT Mitra Pinasthika
automobile market is very large, reaching 1.2 million units sold in 2013.
Mustika (MPM), regarding the merger of SAF and PT Mitra Pinasthika
By the end of 2016, JACCS forecasts that total assets of the merged
Mustika Finance (MPMF), a finance company within the MPM Group.
company will reach 80.0 billion, or 1.7 times the current level. MPMF
MPMF was made the surviving entity of the merger, and JACCS agreed
aims to become one of Indonesias top-10 finance companies.
to acquire new shares issued by MPMF based on a further investment

of 510 billion rupiahs (4.5 billion). Through this transaction, JACCS
The Indonesian Market and MPM
retained a 40% equity stake in the merged entity. In May 2014, the
Indonesia is the worlds fourth most populous country, with 247 million
newly merged company commenced operations, and MPMF appointed
people. Over the medium to long term, domestic demand is anticipated
two directors from JACCS as part of its participation in the companys
to expand and the country is expected to record significant economic
management.
growth. JACCS business partner, MPM, is affiliated with Saratoga,

one of Indonesias leading corporate groups, and is broadly developing
Entry into Auto Sales Finance and Expansion of Operations
its business in the area of automobiles, motorcycles, and related
to Cover All of Indonesia
operations.
The newly merged company has total assets of over 45.0 billion,
Summary of PT Mitra Pinasthika Mustika Finance

Head office: Jakarta
Establishment: May 3, 1990
Principal businesses: 1. Motorcycle and auto sales
finance (installment finance); 2. Finance leases
Capital: 1,224 billion rupiahs (10.6 billion)
Number of employees: 2,878
(as of June 30, 2014)
Indonesia: Key Facts
Population: 247 million (2012)

Land area: Approx. 1.89 million square kilometers
Real GDP growth rate: 5.8% (2013)
Source: Ministry of Foreign Affairs of Japan
Number of automobiles sold (2013):
1,229,901 units (10.2% year-on-year growth)

Source: The Association of Indonesian Automotive Industries (GAIKINDO)
Number of motorcycles sold (2013):
7,743,879 units (9.6% year-on-year growth)

Source: Indonesian Motorcycles Industry Association (AISI)
PT Mitra Pinasthika Mustika Finance
JACCS CO., LTD.
Annual Report 2014
motorcycle sales finance handled, while expanding our product lineup and sales territory. In Indonesia,
through a reorganization of our affiliated finance company, we will enter the auto sales finance business.
Based on the measures outlined above, for fiscal 2014, ending March 31, 2015, on a consolidated
basis we have set management targets of achieving operating revenue of 106,900 million, along with
ordinary income of 12,600 million, and net income of 7,600 million.
Delivering Shareholder Value, Celebrating JACCS 60th Anniversary

The Company sees stable shareholder return as a key management issue. Simultaneously, we also
recognize that shareholder return must be in line with business performance. Hence, our basic policy
regarding profit distribution strives to reinforce our financial base and keep adequate internal reserves
while implementing dividends based on a comprehensive evaluation of such factors as net income,
financial position, and payout ratio.
In June 2014, JACCS celebrated the 60th anniversary of its founding. Our reaching this milestone
was primarily thanks to the cooperation of our shareholders and all other stakeholders, and we wish to
convey our sincere gratitude for this support. As an expression of this appreciation to our shareholders,
We are looking to enter the market for deferred-payment

settlement services and are promoting our prepaid card business.
in fiscal 2013 the Company implemented a commemorative dividend of 2.00 per share. As a result,
the year-end dividend of 8.00 per share comprises an ordinary dividend of 6.00 per share along with
the aforementioned commemorative dividend. Consequently, the cash dividend applicable to fiscal 2013
totaled 14.00 per share, including an interim dividend of 6.00 per share.
Gearing Up for the Next Stage

JACCS is pursuing growth across all spheres of its operationsthe credit business, credit card business,
financing business, overseas operations, and new businesses. In fiscal 2014, we will complete ACT11,
the Groups three-year medium-term business plan. We are also striving to realize our medium- to longterm vision of becoming an innovative consumer finance company with its roots in Japan. As we work
to achieve these goals, we look forward to the ongoing support and understanding of our shareholders,
investors, customers, partner companies, and local communities.
August 2014
Yasuyoshi Itagaki
President, CEO, COO and Representative Director
10
JACCS CO., LTD.
Annual Report 2014
Creating New Businesses

Aggressively Promoting New Businesses
Under JACCS three-year medium-term business plan ACT11, one of the Groups key strategies is the development of new businesses. As part of
this strategy, the Group is aggressively developing new products in such areas as prepaid cards and deferred-payment settlement services, and is
launching a range of products in the market.
Prepaid Card Business
JACCS has developed a new product called Tametoku Prepaid, which includes bill collection and prepaid card
functionsthe first service of its type in Japan. It is designed to be used for the purchase of goods with a high unit price
and low purchase frequency, and operates on a system whereby a fixed amount of money is transferred monthly from the
card members bank account to the prepaid card over a pre-determined period of time (approximately 13 years). As an
example of customization of the Tametoku Prepaid product, in June 2014 JACCS began issuing Tametoku10 as an
original prepaid card for partner company CarBell Co., Ltd. This is a prepaid card designed specifically for the purchase
of an automobile, and is the first case of such a product being launched in the auto sales industry in Japan. As a premium
service for card members, when funds are automatically transferred each month to replenish the cards balance, the
member receives a high bonusequivalent to 10% of the transferred amount. JACCS intends to roll out Tametoku
Prepaid for a wide range of high-unit-price product categories.
Prepaid Cards Featuring Foreign Currency Exchange Functions
In July 2013, JACCS began issuing Visa TravelMoney GonnaJapans first multi-currency prepaid card. This card is
based on Visa TravelMoney offered by Visa Worldwide (Japan) Co., Ltd., but features multi-currency use as an extra level
of functionality provided by JACCS. In March 2014, JACCS added new functionality to the card, including foreign currency
exchange and shopping functions that can be used at Visa-affiliated merchants both in Japan and overseas. The card can
be used in over 200 countries and regions worldwide at 38 million Visa-affiliated merchants. It can also be used at over 2.1
million ATMs displaying the Visa and Plus logos. Furthermore, in May 2014 JACCS launched the Visa TravelMoney Gonna
Banco do Brasil Affiliate Card, which is the first prepaid card in Japan to offer settlement denominated in Brazilian reals.
This product is aimed at enhancing convenience for tourists travelling to Brazil, which is the host country for the 2014
FIFA World Cup and the 2016 Summer Olympics. JACCS intends to expand its range of prepaid card partner companies
to increase market penetration of the Gonna brand.
Deferred-Payment Settlement Services
In April 2014, JACCS began offering deferred-payment settlement services targeting the mail-order and online shopping market. This is the first
service of its type in Japans shopping credit and credit card industry. The name of the new service is ATODENE. This service allows the user to
pay for purchased goods at a convenience store, bank, or other such locations anytime up to two weeks after the receipt of goods from a mailorder or online retailer. JACCS provides settlement on behalf of the purchaser when the goods are shipped. Through this service, the user can pay
for goods after they have arrived, and it enables users who do not have a credit card to make purchases. For retailers, the risk of non-payment is
eliminated since JACCS provides settlement on behalf of
the purchaser. In addition, the risk of order cancellation is
reduced since shipment of goods can be made immediately
ATODENE Deferred-Payment Settlement System

1. Order (from a PC or mobile device)
Customer
after the receipt of an order. The maximum purchase
Affiliated Store
4. Shipment of goods
amount handled by this service is 54,000. In the initial

year following service launch, JACCS aims to sign up 600
retail partners, and is targeting a volume of new contracts
6. Dispatch of
Invoice
8. Payment made within two

weeks at a convenience
store or other location
2. Request for credit

screening
5. Shipping slip
3. Credit screening result

7. Settlement of payment
for goods
of 2,000 million.
JACCS CO., LTD.
Annual Report 2014
11
Credit Business
Further Expansion in the Web Channel, Housing-Related Fields,
Five Major Business Categories, and Auto Loan Market
Overview
JACCS shopping credit supports consumers at various life stages, including in such areas as home renovation and
other housing-related fields, as well as in the purchase of jewelry, educational, bridal, and healthcare services.
Operating Revenue
in Shopping Credits
(Non-Consolidated)
JACCS also offers Web-based products and other products that meet changing market needs. In the auto loan field,
22.0
through partnerships with auto dealers, JACCS facilitates purchases in a broad array of vehicle categories, from
Billions of Yen
domestic and foreign new vehicles through to used vehicles.
Operating Performance (Non-Consolidated)

In shopping credits, the volume of new contracts and operating revenue increased, driven by expansion in major
business categories and heightened demand in the lead-up to the rise in Japans consumption tax rate. There was
2012
2013
2014
a turnaround in operating revenue, which rose, reflecting a higher volume of new contracts and an increase in
reversal of deferred installment income.
In auto loans, the volume of new contracts rose, driven by strengthened collaboration with auto dealers and an
increase in the number of dealerships active. Operating revenue rose, reflecting a higher volume of new contracts
Operating Revenue
in Auto Loans
and an increase in reversal of deferred installment income.

(Non-Consolidated)
Strategy under ACT11
15.7
In shopping credits, JACCS is developing a new lineup of Web-based products to enhance service quality, working
Billions of Yen
to increase the volume of housing renovation loan contracts through collaboration with housing manufacturers, and
targeting expansion in the volume of new contracts by implementing a range of sales promotion programs centered
on major business categories.
In auto loans, JACCS is implementing sales promotion measures aimed at expanding the volume of WeBBy
2012
2013
2014
Auto contracts, working to increase its market share by planning and executing strategies targeting each category
of dealerdomestic brand, foreign brand, and used vehiclesand striving to expand the volume of Neo-Variable
Plan contracts, a product that allows users flexibility in auto loan repayments.
Key Initiatives
Strengthening of marketing channels in major business categories
Centering on the five major business categories of home renovation and other housing-related fields,
motorcycles, jewelry, kimono, and consumer electronics, the Company enhanced its lineup of high-usability
Web-based products, and strengthened promotion activities in collaboration with partner stores as it worked to
increase its share of in-store purchases. These efforts contributed to year-on-year growth in the volume of new
contracts across all five categories.
Neo-Variable Plan
This product offers users flexibility in auto loan repayment amounts. Users are free to set their own pattern of
monthly repayments when the loan agreement is signed. After the loan is taken out, the product allows customers
to change (or extend) the number of repayments by bringing forward a portion of repayments or reducing the
monthly repayment amount. JACCS has positioned WeBBy Auto and Neo-Variable Plan as strategic
products, and this is leading to growth in the volume of new contracts.
12
JACCS CO., LTD.
Annual Report 2014
Yearly Growth Rate of Volume of New Contracts

in Five Major Business Categories
Home renovation and other
housing-related fields
Motorcycles
Jewelry
Kimono
Consumer electronics
8.8%
2.9%
21.4%
7.0%
57.2%
Credit Card Business

Expanding the Membership Base and Promoting
Increased Card Usage
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 status as an independent credit card issuer not affiliated with any particular retail
Operating Revenue in
Credit Card Business for
Shopping
(Non-Consolidated)
groupwe focus on enhancing the value-added of co-branded cards. We are also promoting increased cardholder
26.7
use of revolving payment services.
Billions of Yen

In card shopping, ongoing promotional campaigns contributed to an increase in the average usage amount per
cardholder and led to a rise in the volume of new contracts. Increases in the volume of new contracts and the
balance of revolving payments underpinned growth in operating revenue.
2012
2013
2014
The volume of new contracts from cash advances declined owing to the continued impact of regulations
concerning the total amount that individual consumers are permitted to borrow. Operating revenue from cash
advances decreased owing to declines in the volume of new contracts and the balance of cash advances.

The core strategy of the credit card business is to expand the cardholder base. We are implementing such measures
Operating Revenue in
Credit Card Business for
Cash Advances
(Non-Consolidated)
as a strategy of developing relationships with new business partners that are likely to provide opportunities to
expand the number of high-usage card members, increasing the range of channels used for recruiting card
14.7
members, ongoing reinforcement of the infrastructure for recruiting card members through the Web, and expanding
Billions of Yen
the lineup of co-branded cards. For existing card members, we are working to stimulate card usage through
continuous promotional campaigns. We are also stepping up outbound / inbound programs, as we work to build
up the balance of revolving payments. In cash advances, we are striving to increase the volume of new contracts
2012
2013
2014
through the running of sales promotion campaigns.
Key Initiatives
In-store credit card membership applications using tablet
computers
JACCS commenced receiving credit card applications using tablet computers
Number and Ratio of

Active Cardholders
Number of Active Cardholders

Ratio of Active Cardholders
341
Tens of Thousands
49.9%
for its co-branded card with major sporting goods retailer Alpen Co., Ltd. This
program allows customers to fill out in-store applications for the Alpen Group
Card. Compared to conventional paper-based application procedures, personal information is made much more
secure through electronic encryption of data, the burden for filling out applications is reduced, and the system
contributes to a shortened period necessary for card issuance.
2012
2013
2014
Dedicated department tasked with building up the balance of

revolving payments
To further build up the balance of revolving payments, JACCS established a
dedicated department (call center) to strengthen outbound / inbound programs.
JACCS CO., LTD.
Annual Report 2014
13
Financing Business
Pursuing Alliances with Financial Institutions and Boosting
Product Appeal
Overview
The financing business comprises credit guarantees for personal loans extended by banks, credit guarantees for
housing loans, and bill collection services. Housing loan guarantee services specialize in mortgage guarantees on
studio-type apartments purchased for investment purposes. JACCS conducts this business specifically in Tokyo,
Revenue from
Guarantees for Housing
Loans
(Non-Consolidated)
Osaka, and Fukuoka, where apartments have sound rental income-earning potential.
15.4
Billions of Yen

In personal loan guarantees for banks, we successfully expanded transactions with The Bank of Tokyo-Mitsubishi
UFJ, Ltd. (BTMU), and bolstered alliances with leading regional banks. As a result, the balance of loan guarantees
grew and operating revenue increased. In housing loan guarantees, we maintained a stable balance of loan
guarantees above one trillion yen. Operating revenue declined. In bill collection services, operating revenue
2012
2013
2014
increased, driven by growth in the number of invoices handled.

In personal loan guarantees for banks, we are working continuously to expand the balance of loan guarantees by
strengthening collaboration with BTMU. We are also pursuing further partnerships with leading financial institutions
by expanding our lineup of products to meet the needs of our partners.
Revenue from Guarantees

for Personal Bank Loans
(Non-Consolidated)
3.2
JACCS is working to maintain its balance of housing loan guarantees at a level exceeding one trillion yen as
Billions of Yen
well as keep the top market share. We plan to undertake measures to strengthen partnerships with leading real
estate developers.
In bill collection services, JACCS is focusing on making rapid inroads into the market for regular payment
services. By developing superior, differentiated products, we are targeting rent payment collection services for real
estate management companies and membership fee collection services for fitness clubs.
Key Initiatives
2012
2013
2014
Revenue from
Bill Collection Services
Expansion of partner financial institutions by building a

Web-based system
2.5
Billions of Yen
JACCS has built a system that leverages the particular features of the Web,
and this has enabled the Group to expand its partnerships with financial
institutions.
Star Rent System rent guarantee system

Targeting real estate management companies and property owners, JACCS
began offering a rent guarantee system that adds on two insurance
productsOwners Safety and Household Contents Insurance (please
refer to page 5). As a packaged product, this system is a first in the industry,
and JACCS is aggressively marketing it as a core rent guarantee product.
14
JACCS CO., LTD.
Annual Report 2014
2012
2013
2014
Overseas Operations
Expanding the Sales Territory in Vietnam and Striving
for Increased Business Scale in Indonesia
Overview
JACCS is currently developing businesses in Vietnam and Indonesia. In Vietnam, which JACCS entered in 2010, the
Balance of Operating
Receivables in Vietnam
Company is expanding its operations by focusing on the motorcycle sales finance business. In Indonesia, JACCS
1,817
entered the motorcycle sales finance business in 2012, and in the fiscal year under review successfully entered the
Millions of Yen
auto sales finance business through a reorganization of local finance companies. We are providing the know-how
we have accumulated in Japan as we aim to expand our business in these regions.

In Vietnam, the number of motorcycle dealers in our sales network, the number of loans handled, and the balance of
operating receivables are all growing. The business is centered on the southern part of Vietnam, which includes Ho Chi
2011
2012
2013
(Years ended December 31)
Minh City. We have also begun offering unsecured loans to customers who have fully paid off their motorcycle loan.
In Indonesia, we steadily grew the volume of new contracts and number of loans in the motorcycle sales
finance business.
Number of Member
Stores in Vietnam
Consolidated subsidiary JACCS International Vietnam Finance Co., Ltd. (JIVF), plans to expand its sales territory to
314
include Hanoi in the northern part of the country. We are also working to expand unsecured loans to customers who
have fully paid off their motorcycle loan.
In Indonesia, we are striving for further growth driven by robust conditions in the motorcycle sales market.
Through the reorganization of local finance companies, we are aiming for greater business scale and to maximize
synergies. This includes developing an auto sales finance business covering all of Indonesia, and expanding the
sales territory of our Honda motorcycle sales finance business. We are also planning to commence handling sales
2011
2012
2013
(Years ended December 31)
finance for Nissan automobiles.
Key Initiatives
Aggressive expansion of sales territory in Vietnam
Following the lifting of regulatory restrictions on store openings that
were implemented in October 2012, we have almost tripled the
number of dealers in our sales network year on year.
Reorganization of finance companies in Indonesia

Indonesian finance company PT Sasana Artha Finance (SAF) merged
with PT Mitra Pinasthika Mustika Finance (MPMF), and JACCS made
a new equity investment in MPMF as the surviving entity. We are
participating in the management of this company, and this has given
us a sound platform for development of the finance business in
Indonesia (please refer to page 9).
JACCS CO., LTD.
Annual Report 2014
15
Corporate Governance
Fundamental Corporate Governance Philosophy
Audit & Supervisory Board Members and the Audit & Supervisory Board
The Company works to maintain the trust and respond to the expectations of a
As of June 27, 2014, the Company had four Audit & Supervisory Board
broad cross-section of stakeholders, including shareholders, business partners,
Members (including two outside Audit & Supervisory Board Members). As
employees, consumers, and local communities. Furthermore, the Company
independent officers functioning under a mandate from the General Meeting
pursues management that places significant importance on corporate social
of Shareholders, the Audit & Supervisory Board Members audit the directors
responsibility (CSR), and believes that enhancing corporate value and
execution of duties. The Audit & Supervisory Board is a body that holds
contributing to society as well as the realization of a society based on trust
discussions and makes decisions regarding the audits undertaken by the
are key management issues. To achieve these goals, the Company works to
Audit & Supervisory Board Members for the purpose of formulating opinions.
increase the soundness of its business, improve transparency, and strengthen
Each Audit & Supervisory Board Member utilizes the Audit & Supervisory
its management control systems and audit functions, while undertaking
Board as a means of ensuring effectiveness. As a body to support the Audit
corporate activities in accordance with principles of social justice.
& 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

Under its corporate governance structure, the Company appoints a Board of
Directors and an Audit & Supervisory Board, and has introduced a system of
Management Committee
executive officers.
As an advisory body to the COO, the Management Committee comprises

mainly executive officers responsible for supervising each function of the
Board of Directors
Companys business organization. In principle, the Management Committee
As of June 27, 2014, the Board of Directors comprises nine members
convenes three times per month and broadly considers and debates matters
(including two outside directors). The Board of Directors determines the
delegated by the Board of Directors, important operational matters and various
Companys basic management policies, and makes decisions regarding
issues, as part of a system designed to facilitate expeditious execution.
important operational matters and other matters delegated by resolution

of the General Meeting of Shareholders. The Board of Directors also makes
Audit Office
decisions on matters stipulated by law and the Companys Articles of
The Audit Office functions as an internal auditing unit, which reports directly
Incorporation, and receives reports regarding the status of significant
to the President, CEO, COO and Representative Director and maintains
operational matters. Based on this structure, the Board of Directors oversees
independence from the rest of the Companys organization. As of June 27,
the operational execution of the Companys management. The term of
2014, the Audit Office comprised 20 staff, including the Audit Office General
appointment for directors is one year.
Manager. The Audit Office considers and evaluates overall business-related
Corporate Governance Structure

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

Representative Director
Accounting Audit
Accounting Auditor
Internal Control Committee

Cooperation
Compliance Committee
Personal Information Protection Committee
Individual Departments
Directors, Executive Officers, Others
16
JACCS CO., LTD.
Annual Report 2014
and Others
Audit Office
risk management control and the effectiveness of governance processes
Audit & Supervisory Board Members, appointment decisions are based on
at each of the Groups operational sites, and conducts internal auditing
the principles that persons appointed must not have any beneficial interests
operations based on the Companys internal control system policies.
in the Company, be able to express opinions and advice from an independent

and objective perspective so as to sustain the soundness and transparency
Committees
of the Companys management, and must not have the risk of conflicts of
Internal Control Committee
interest arising with ordinary shareholders of the Company.
The Internal Control Committee is tasked with establishing systems to

ensure that the Groups operations are conducted appropriately, and has
Compensation of Officers
the objective of promoting integrated and efficient internal control and

risk management.
Compliance Committee
Officer category
The Compliance Committee has the objective of promoting business

operations within the Group that achieve an extremely rigorous level of
compliance.
Personal Information Protection Committee
The Company acquires personal information and provides credit as part of
its business operations. For this reason, it is essential that the entire Group
works to ensure the protection of personal information. The Personal
Total compensation by type (millions of yen) Number of

Total comdirectors
pensation
or Audit &
Basic
Stock
Retirement
(millions of compensaSuperviBonuses
options
allowance
yen)
sory Board
tion
Members
Directors (excluding
outside directors)
241
219
21
__
__
Audit & Supervisory

Board Members
(excluding outside
Audit & Supervisory
Board Members)
30
30
__
__
__
Outside officers
21
21
__
__
__
for matters relating to the handling of personal information.
Note: The above table includes three directors and one Audit & Supervisory Board Member who
retired as of the Ordinary General Meeting of Shareholders held on June 27, 2013, and one
Audit & Supervisory Board Member who retired on August 31, 2013.
The reason the Company adopted this corporate governance structure is to
Information Disclosure System
enhance the effectiveness of the Board of Directors decision-making and
To ensure management transparency and enhance accountability, the
oversight and the Audit & Supervisory Board Members (Audit & Supervisory
Company conducts timely, appropriate, and fair information disclosure
Board) management audit functions. Furthermore, this structure clearly
through investor relations (IR) activities aimed at shareholders and investors.
Information Protection Committee is the Companys highest body responsible
defines the respective roles and responsibilities of directors and executive

officers who have a deep knowledge of the Companys operations, and
Measures to Revitalize the General Meeting of Shareholders and Promote
day-to-day management. Hence, the Company believes that this structure is
the Exercise of Voting Rights
optimal for facilitating autonomous, responsible, and speedy management.
The Company works to dispatch notices of General Meeting of

Shareholders as early as possible. Notice of the Ordinary General Meeting
Internal Control and Compliance Structure
of Shareholders held on June 26, 2014, was dispatched on June 6, 2014.
In addition to building an expeditious and efficient structure for operational
To promote the exercise of voting rights, the Company participates in an
execution, the Company believes that strengthening the compliance system
electronic voting platform.
of the entire Group and establishing a highly independent internal audit

system is extremely important. Hence, the Company has established
IR Activities
specialist organizational units responsible for each of these functions. The
The Company holds briefings for analysts and institutional investors twice
Company has passed a resolution regarding its Policy for the Establishment
yearly approximately one week after the results announcement. In addition
of the Internal Control System, and is building its internal control system
to the results announcement at the Tokyo Stock Exchange (TSE), the
based on this policy.
Company posts its securities filing (Yuka Shoken Hokokusho), briefing

materials for analysts and institutional investors, shareholders newsletters,
Outside Directors and Outside Audit & Supervisory

Board Members
English annual report, and other materials on its website.

http://www.jaccs.co.jp/corporate/ir/index.html
The Company has appointed two outside directors and two outside Audit &
Supervisory Board Members.
Although the Company has not established any specific standards
A dedicated IR manager is appointed within the Corporate Planning and

Communication Department.
relating to independence in the appointment of outside directors and outside
JACCS CO., LTD.
Annual Report 2014
17
Founders / Board of Directors and Audit & Supervisory Board Members

As of June 27, 2014
Founder and Honorary Chairman
President, CEO, COO
Directors and Senior Executive Officers
Kaname Yamane
and Representative Director
Kojun Sato
Yasuyoshi Itagaki
Corporate Planning
Deputy President and
Shigeki Ogata
Accounting and Finance
Founder and Counselor

Tatsuya Watanabe
Senior Adviser
Tsutomu Sugiyama
Haruo Kamioka*
Naoe Sugimoto
Director and Senior Managing
Executive Officer
Kuniaki Hara*
* Outside Directors
Hidechika Kobayashi
Audit & Supervisory Board Members
Credit and Credit Card, Business Strategy
Akihiro Urabe (Full-time)

Takayuki Hiroi (Full-time)
Directors and Managing
Saburosuke Fujisaki*
Executive Officers
Satoru Fujimura*
Noboru Kawakami
General Affairs, Personnel and Compliance
* Outside Audit & Supervisory Board Members
Minekazu Sugano
Information System
(Front, from
left to right)
(Back, from
left to right)
18
JACCS CO., LTD.
President, CEO, COO and

Yasuyoshi Itagaki
Director and Senior
Executive Officer
Kojun Sato
Annual Report 2014
Director and Managing

Executive Officer
Noboru Kawakami
Deputy President and

Tsutomu Sugiyama
Director and Senior
Managing Executive Officer
Hidechika Kobayashi
Director and Managing

Executive Officer
Minekazu Sugano
Director and Senior

Executive Officer
Shigeki Ogata
Executive Officers
As of June 27, 2014
Managing Executive Officer
Executive Officers
Satoru Shiroishi
Masayuki Nemoto
Shutoken Area
Credit Card Business Promotion, Business Strategy
Senior Executive Officers
Isao Yanagihara
Akira Furukawa
Hokkaido Area
Kita-Kanto Area
Yoshinao Osawa
Finance Business, Business Strategy
Yukihiko Kamagata
Audit
Hitoshi Chino
Credit Supervision and Operation
Hideo Yoshino
PT Mitra Pinasthika Mustika Finance (Indonesia)
Kenichi Oshima
Credit Administration
Toru Yamazaki
Kinki Area
Takahiro Nagoshi
Sales, Business Strategy
Akira Kuzukami
Chubu Area
Ryo Murakami
Credit Business Promotion, Business Strategy
Shingo Yuzue
Housing Loan Guarantee, Business Strategy
Toshio Sotoguchi
Auto Loans, Business Strategy
Masatoshi Kishi
Chugoku-Shikoku Area
Kazuo Yamamoto
Corporate Planning
Noboru Taniguchi
Credit Administration
Masahiro Hasukawa
Credit Supervision and Operation
Toshiyuki Hijikata
Compliance
Hiroki Yoshida
Tohoku Area
Atsushi Hazawa
Kyushu Area
JACCS CO., LTD.
Annual Report 2014
19
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. When undertaking
CSR activities, we are also conscious of our commitment to being a company that generates sustainable profits and
always acts in good faith.
Ongoing seminar program for member stores

Every year, JACCS holds seminars with the objective of supporting member stores efforts
to strengthen their compliance systems. In fiscal 2013, we held 39 seminars nationwide
under such themes as Avoiding Consumer Disputes, Legal Aspects of Handling
Complaints, and Dealing with Workplace Bullying. A total of 1,521 participants from
567 companies took part in these seminars. Participants reported that the seminars had
contributed to enhanced business performance and smoother operations at member
stores. We will continue to organize seminars as we strive to maintain our position as
a trusted partner.
Contributing to society through credit cards

As part of JACCS efforts to contribute to society through its business activities, the
Company issues credit cards that provide a charitable donation based on usage. A certain
percentage of the cards total annual purchase amount is donated to a specified charitable
organization or local area. JACCS fully incurs the amount that is donated to charity, and 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 making a social contribution.
Members may select from the following card lineup.
Japan Guide Dog Association Card
Kumamoto Card
Hakodate Card
Donations go to the Japan Guide
Dog Association (JGDA)
JACCS CO., LTD.
HOKKAIDO I CARD
Donations go to the Kumamoto
Hometown Support program
Donations go to Hakodate City to

support aid programs for childrearing and other social welfare
programs
20
JACCS CARD Link
Annual Report 2014
Donations go to the Hokkaido

Heritage Council
When joining, members select a

charitable organizationwhich
receives donationsfrom an
extensive list. The list includes
such organizations as the Japan
Committee for UNICEF, the
Japanese Red Cross Society, and
the Japan Association for UNHCR.
Financial Information
21
Seven-Year Financial Summary
22
Managements Discussion and Analysis
26
Business Risks
28
Consolidated Balance Sheets
30
Consolidated Statements of Income
31
Consolidated Statements of Changes in Net Assets
33
Consolidated Statements of Cash Flows
34
Notes to the Consolidated Financial Statements
48
Independent Auditors Report
Seven-Year Financial Summary

Millions of Yen
2008
2009
2010
2011
2012
2013
2014
Summary of operations for the year:

2,448,288
2,412,646
2,316,012
2,328,294
2,387,501
2,480,470
2,784,532
Volume of new contracts: Credit card
Total volume of new contracts
714,783
723,126
704,064
738,947
749,720
786,669
899,957
Volume of new contracts: Installment sales finance
325,794
306,343
241,957
227,300
230,352
211,539
293,029
Volume of new contracts: Credit guarantee
562,889
527,433
515,934
551,465
603,873
636,770
687,669
Volume of new contracts: Financing
251,888
211,317
178,181
118,673
86,418
83,022
79,010
Volume of new contracts: Other operations
592,933
644,425
675,874
691,907
717,136
762,469
824,866
139,912
142,039
127,101
116,241
107,384
102,950
104,134
(8,020)
5,271
8,845
3,137
10,972
9,413
12,236
(15,457)
4,711
7,460
5,571
12,203
11,764
12,730
Operating income (loss)

Income (loss) before income taxes and minority interests
Net income (loss)
(9,758)
2,587
3,569
4,398
6,822
7,642
6,504
Net cash provided by (used in) operating activities
58,022
94,774
122,877
104,111
36,236
15,157
(89,429)
Net cash provided by (used in) investing activities
(5,511)
(4,956)
1,708
(4,533)
(4,181)
(8,934)
(8,355)
Net cash provided by (used in) financing activities
22,731
(124,126)
(116,864)
(33,883)
(61,147)
(47,933)
72,821
2,788,607
3,024,588
2,827,806
2,786,288
2,725,816
2,718,518
2,896,405
99,538
97,849
103,273
105,261
111,348
117,486
122,712
At year-end:
Total assets
Total net assets
Yen
Per share data:

Net income (loss)
Net assets
Cash dividends
(65.90)
14.78
20.39
25.12
38.97
43.72
37.71
568.30
558.74
589.74
601.13
636.17
678.38
715.38
4.00
5.00
5.00
10.00
11.00
14.00
Key ratios (%):

ROA
(0.3)%
0.2%
0.4%
0.2%
0.5%
0.4%
0.4%
ROE
(9.5)
2.6
3.6
4.2
6.3
6.7
5.4
Equity ratio
3.6
3.2
3.7
3.8
4.1
4.3
4.2
9,911
9,714
9,920
9,601
8,419
7,281
6,828
175,395,808
175,395,808
175,395,808
175,395,808
175,395,808
175,395,808
175,395,808
2,934
2,977
2,714
2,839
2,977
3,096
3,355
Supplementary data:
Number of JACCS cardholders (Thousands)
Number of shares outstanding at year-end
Number of employees
JACCS CO., LTD.
Annual Report 2014
21
Managements Discussion and Analysis

Analysis of Operating Performance
Composition of Total Volume

of New Contracts (%)
Other Operations
29.7%
Overview
In fiscal 2013, ended March 31, 2014, the second year of JACCS three-year medium-term business
Credit Card
32.3%
planACT11the Group addressed the highest priority task set under the plan of turning around and
expanding operating revenue (top line). Specifically, the Group implemented measures to stimulate growth
in its three core businessesthe credit business, credit card business, and financing businesswhile
Financing
2.8%
Credit Guarantee
24.7%
reinforcing initiatives aimed at developing its overseas operations and new businesses. As a result, the
Installment Sales
Finance
10.5%
Company achieved a turnaround in its top line.

On a consolidated basis, the total volume of new contracts amounted to 2,784,532 million
(US$27,299 million), an increase of 304,062 million (US$2,981 million), or 12.3%, compared with the
previous fiscal year. Total operating revenue grew 1,184 million (US$11 million), or 1.1%, to 104,134
million (US$1,020 million).
Results by Business
Credit Card
In credit card operations, the volume of new contracts grew steadily, underpinned by new membership
campaigns and an array of promotions JACCS ran to stimulate card usage. Expansion in the volume of
new contracts was also driven by growth in the Readers Card, KAMPO STYLE CLUB CARD, and REX
CARDwhich have built a strong reputation and offer users enhanced point-earning ratiosas well
as co-branded cards issued in collaboration with major consumer electronics retail chains. In addition,
JACCS began providing various new services to enhance the convenience for customers and affiliate
stores. This included receiving credit card applications in-store using tablet computers for a cobranded card with a major sporting goods retailer.
As a result, on a consolidated basis, in the credit card business, the volume of new contracts
increased 14.4% compared with the previous fiscal year, to 899,957 million (US$8,823 million),
and operating revenue increased 2,937 million (US$28 million), or 13.7%, to 24,418 million
(US$239 million).
About Five Key Business Lines

The three core businesses operated by JACCS
that are introduced on pages 1214 are classified
according to the following five business segments
for Japanese accounting and regulatory disclosure
purposes.
22
JACCS CO., LTD.
Annual Report 2014
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.

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.
Total Volume of New Contracts
In shopping credits, in addition to a recovery in purchases of big-ticket items, such major business
3,000
(Billions of Yen)
2,784
categories as motorcycles, jewelry, kimono, and consumer electronics performed strongly. In particular,
2,500
consumer electronics purchases remained robust from the start of the fiscal year and recorded
substantial year-on-year growth. In the focus area of Web-related services, JACCS added new
2,316
2,328
2,387
2,480
Credit card
2,000
Installment
sales finance
functionality to the WeBBy in-store credit application service, resulting in an increase in usage.
1,500
In auto loans, as well as focusing on foreign new vehicles, JACCS worked to strengthen its
partnerships with domestic-brand automobile dealerships and used-vehicle dealers through a range of
Credit
guarantee
1,000
Financing
marketing programs. JACCS also promoted the adoption and usage of its WeBBy Auto servicea
500
Web-based paperless auto loan application system.

In both shopping credits and auto loans, from the third quarter of the fiscal year extra demand
Other
operations
moved into full swing in the run-up to the increase in Japans consumption tax rate in April 2014. This
2010
2011
2012
2013
2014
helped to drive a large increase in the volume of new contracts.

As a result, on a consolidated basis, the installment sales finance business recorded a 38.5%
increase in the volume of new contracts, to 293,029 million (US$2,872 million). Operating revenue
increased 1,158 million (US$11 million), or 7.1%, to 17,475 million (US$171 million).
Credit Guarantee
Within personal loan guarantees for banks, new partnerships with regional banks, an expanded lineup
of products handled, and a strengthened alliance with BTMU contributed to a robust performance by
loans on deed, including personal auto loan guarantees.
In housing loan guarantees on condominiums for investment purposes, as competition intensified
due to such factors as the market entry of new participants, JACCS achieved steady performance
underpinned by ongoing, effective sales activities. In housing-related products, JACCS maintained
robust results in such areas as loans for commercial solar power generation systems and housing
renovation loans. Auto loan guarantees achieved a similar performance to auto loans in the installment
sales finance business.
As a result, on a consolidated basis, the credit guarantee business recorded an 8.0% increase in
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 2014
23
the volume of new contracts, to 687,669 million (US$6,741 million). Operating revenue rose 628

(Billions of Yen)
million (US$6 million), or 1.6%, to 39,183 million (US$384 million).
150
127
Financing
116
120
107
102
104
90
The implementation of promotional campaigns to attract new customers and stimulate usage among
existing customers led to a bottoming out of the declining trend in the consolidated volume of new
contracts for cash advances.
60
As a result, on a consolidated basis, the financing business posted a 4.8% decrease in the
volume of new contracts, to 79,010 million (US$774 million). Operating revenue fell 3,566 million
30
(US$34 million), or 19.4%, to 14,782 million (US$144 million).

0
2010
2011
2012
2013
2014
Other Operations
Bill collection services achieved a robust volume of new contracts, driven by such areas as rent
collection and fitness club membership fees. JACCS also revamped its bill collection system, enabling
Net Income
it to offer services with a greater level of functionality. Consolidated subsidiaries in other operations
(Billions of Yen)
8
7.6
6.8
focused on expanding such businesses as non-life and life insurance agency services, leasing, and
6.5
servicer operations.
As a result, on a consolidated basis, other operations posted an 8.2% increase in the volume
of new contracts, to 824,866 million (US$8,086 million). Operating revenue* increased 28 million
4.3
4
(US$0.2 million), or 0.3%, to 8,274 million (US$81 million).
3.5
* Operating revenue presented for other operations is the sum of other operating revenue and financial revenue.
Operating Expenses and Net Income

Total operating expenses declined 1,639 million (US$16 million), or 1.8%, compared with the
0
2010
2011
2012
2013
2014
previous fiscal year, to 91,898 million (US$900 million).

Operating income increased 2,823 million (US$27 million), or 30.0%, compared with the
previous fiscal year, to 12,236 million (US$119 million), and ordinary income rose 488 million
(US$4 million), or 4.1%, to 12,238 million (US$119 million).
Total Assets
Accompanying the absorption-type merger with consolidated subsidiary JNS Collection Service Co.,
(Billions of Yen)
3,500
2,800
Ltd., on April 1, 2013, the Company reversed a portion of its deferred tax assets. As a result, there was
2,827
2,786
2,896
2,725
an increase in income taxes-deferred. Consequently, consolidated net income decreased 1,138 million
2,718
(US$11 million), or 14.9%, compared with the previous fiscal year, to 6,504 million (US$63 million).
Net income per share amounted to 37.71 (US$0.36), a decrease of 13.7% compared with the
2,100
previous fiscal year. The Company implemented cash dividends totaling 14.00 (US$0.13) per share
applicable to the fiscal year under review, an increase of 27.3% compared with the previous fiscal year.
1,400
Analysis of Financial Position
700
Fund Procurement
0
2010
24
2011
JACCS CO., LTD.
2012
2013
2014
Annual Report 2014
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
Credit Rating
stability and cost considerations.

Since the Company undertakes direct financing in capital markets, it obtains credit ratings for
R&I
JCR
Long term
A-
A-
Short term
a-1
J-1
its bonds.
Financial Position
Total assets at March 31, 2014, amounted to 2,896,405 million (US$28,396 million), an increase
of 177,887 million (US$1,743 million), or 6.5%, compared with the previous fiscal year-end. Total
current assets increased 174,287 million (US$1,708 million), to 2,831,720 million (US$27,761
million). Although cash and deposits decreased, there were increases in accounts receivable-
Total Net Assets

(Billions of Yen)
117
111
installment and accounts receivable-installment sales-credit guarantee. Total noncurrent assets

increased 3,598 million (US$35 million) compared with the previous fiscal year-end, to 64,684
122
125
105
103
100
million (US$634 million), reflecting increases in software.

Total current liabilities at March 31, 2014, amounted to 2,339,788 million (US$22,939 million),
an increase of 102,146 million (US$1,001 million) compared with the previous fiscal year-end,
75
50
reflecting increases in accounts payable-credit guarantee and commercial papers. Total noncurrent
liabilities at fiscal year-end increased 70,513 million (US$691 million), to 433,903 million
25
(US$4,253 million), reflecting increases in such items as bonds payable and long-term loans payable.
Total net assets increased 5,226 million (US$51 million), to 122,712 million (US$1,203
0
2011
2010
2012
2013
2014
million), reflecting an increase in retained earnings. The equity ratio fell 0.1 percentage point, to 4.2%.
Net assets per share amounted to 715.38 (US$7.01) at fiscal year-end, an increase of 5.4%
compared with the previous fiscal year-end.
CF from Operating Activities
CF from Investing Activities
CF from Financing Activities
Cash Flows
(Billions of Yen)
Cash Flows
150
122.8
Net cash used in operating activities amounted to 89,429 million (US$876 million). Significant items
104.1
100
included increase in notes and accounts payable-trade of 85,967 million (US$842 million), income
before income taxes and minority interests of 12,730 million (US$124 million), and increase in notes
72.8
50
15.1
and accounts receivable-trade of 191,937 million (US$1,881 million).

Net cash used in investing activities amounted to 8,355 million (US$81 million). Significant
items included proceeds from sales of investment securities of 1,906 million (US$18 million) and
36.2
1.7
-4.5
Significant items included proceeds from long-term loans payable of 113,415 million (US$1,111
-8.9
-8.3
-33.8
-50
-47.9
-61.1
purchase of property, plant and equipment and intangible assets of 10,591 million (US$103 million).
Net cash provided by financing activities amounted to 72,821 million (US$713 million).
-4.1
-89.4
-100
-116.8
-150
2010
2011
2012
2013
2014
million), net increase in commercial papers of 59,900 million (US$587 million), repayment of longterm loans payable of 113,508 million (US$1,112 million), and redemption of bonds of 30,000
million (US$294 million).
As a result, cash and cash equivalents at end of period totaled 70,883 million (US$694 million),
a decrease of 24,836 million (US$243 million) compared with the previous fiscal year-end.
JACCS CO., LTD.
Annual Report 2014
25
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, cases of arrears due to customers
declaring bankruptcy or debt-workoutthe main causes of write-offs of doubtful
accountsare on a declining trend, and the impact of such cases on the Companys
operating performance is likely to be minimal.
Claims for the repayment of excess interest are likely to have a minimal impact on
the Companys operating performance since the Company complied with the interest
rate ceilings stipulated in the Interest Limitation Law.
Member store risk
There is the possibility that member stores may fall into bankruptcy owing to deterioration
in financial soundness, and that such stores may cease the provision of services or the
delivery of goods to the Companys customers. In such cases, the Company may suffer
damage, which may affect its operating performance.
Pursuant to a revision of the Installment Sales Law in 2008, if a specified-contract
member store were to engage in inappropriate sales activity (excessive-volume sales,
misrepresentation, etc.), customers subject to such behavior would be able to withdraw
their declaration of intent regarding the application to enter into a contract with the
seller. If inappropriate sales activity were recognized to have occurred, affected
customers could claim refunds from the credit company. If there were an increase in
inappropriate sales activity by member stores, the Company may suffer damage, which
may affect its operating performance.
2. Market-related risk
Risk of increase in funding interest rates
As of March 31, 2014, the Groups overall fund procurement (including straight
corporate bonds and commercial papers) fixed interest-rate ratio (including swaps)
stood at 57.0%, and the floating interest-rate ratio stood at 43.0%. 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, 2014, 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 papers J-1 (JCR) and a-1
(R&I). The Companys commercial paper issuing limit is set at 300 billion (US$3,191
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, 2014, the Group holds investment securities amounting to 16,222
million (US$159 million) (market-listed and unlisted shares, etc.) and property, plant
and equipment amounting to 20,446 million (US$200 million) (land, buildings and
structures, etc.). There is the possibility that the Company may record valuation losses
on such holdings owing to declines in market prices or impairment of investment value.
3. Administrative risk
In the operation of its businesses, the Group conducts a wide variety and high volume
of administrative processing. The Group works to ensure that all administrative
26
JACCS CO., LTD.
Annual Report 2014
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.
4. System risk
While the Companys core information system comprises the security management
structures outlined below, in the event of a malfunction or stoppage in the core
information system, the Groups operations may be halted, which may affect the
Companys operating performance.
(1) The Companys core computer system, called JANET, comprises three main
systemsprocessing, input/output (I/O), and operational monitoring. All three systems
are installed in an information center managed by a contracted operations company.
This information center has taken earthquake countermeasures and installed multiple
electric power supply lines as well as electrical generator equipment. Hence, even if
outside supply were disrupted, the center could remain operational for several days
using its own supply. The information center makes a backup of data necessary for
the resumption of operations, which is stored at a separate location more than 60
kilometers away. Furthermore, in case of a contingency affecting I/O center processing,
such critical operations as member store settlement operations can be performed at an
alternate processing center. In such a case, since operations would be carried out on a
temporary basis, customer services may be adversely affected.
(2) The Company uses the JANET system to manage most information relating to its
operations, including customer personal and credit information and member store
transaction conditions. JANET comprises a dedicated network, and although external
access paths are completely blocked, the Company implements a range of other
measures as part of its security management, as summarized below:
(i) JANET terminal functions are set up in such a way that each user is restricted to an
authorized set of functions necessary for business operations, depending on the
terminals location and the users position and job.
(ii) Each set of terminal operations is recorded in a log, which is monitored to ensure
that operations are valid.
(iii) Terminals are all controlled through a system of locks, and the terminal equipment
cannot be removed from its installed location.
(iv) Terminals do not include I/O ports for removable recording media, and the
equipment is configured so that individuals cannot introduce, input, output, or
record data.
(v) System access for system developers and operators must be authorized in advance
and requires the application for and approval of a user ID, which must be
surrendered again after use. Monitoring is carried out on a daily basis to ensure
that usage is appropriate.
(vi) Within the scope of Management of the JANET Host System Development,
Maintenance and Operation, the Company has acquired certification under the
international standard relating to information security, ISO/IEC 27001:2005. Based
on this standard, the Company is able to effectively pursue measures relating to
information security.
5. Compliance risk
Within the Group, the Company conducts money lending, credit card, and installment
sales finance operations, and the Companys consolidated subsidiaries conduct servicer
and other operations. Pursuant to laws and regulations, these businesses require
registration with or permits issued by the relevant authorities. From the fiscal year
ended March 31, 2014, the Company has commenced several new businesses in such
areas as advance-payment methods and the transfer of funds. The scale of these new
businesses is still small. To ensure strict compliance with laws and regulations, the
Group has established compliance systems as outlined below. However, in the event
that the Group engaged in activity that was in violation of laws or regulations, the Group
may be subject to punishment by relevant authorities pursuant to laws and regulations
(business improvement order, partial or full business suspension order, revocation of
registration, etc.), which may affect the Companys operating performance.
Installment Sales Law and Special Transactions Law
The Companys credit card and installment sales finance operations are subject to the
Installment Sales Law. For this reason, the Company is subject to a variety of regulations
(excessive credit prevention, member store investigation, disclosure of transaction
conditions, delivery of written documents, plea for suspension of payments, cooling off/
release/cancellation of credit contracts, damages relating to cancellation of contracts,
appropriate management of credit card numbers, etc.). The Company must also comply
with the voluntary rules of the Accredited Installment Sales Association, which are
based on the Installment Sales Law. This laws objectives are to strive for the sound
development of transactions relating to installment sales, etc., through the assurance
of fair transactions, prevention of infringements against purchasers, and establishment
of measures necessary for the appropriate management of credit card numbers, etc.,
as well as to protect the interests of purchasers, facilitate the smooth distribution of
goods and provision of services, and thereby contribute to the countrys economic
development. The Company conducts its business operations so that these objectives
are properly realized.
Pursuant to the 2008 revision of the Installment Sales Law, the Company
implemented a major review of its business relationships with stores that are subject
to the Special Transactions Law to ensure that the Company executes appropriate
examination of such stores. The Company also reformed its organization and undertook
development of its processing system to ensure its ability to investigate and estimate
the potential amount customers are capable of paying. Although the impact on the
Companys operating performance was not insignificant immediately following the laws
revision, the abovementioned measures also led to a remarkable improvement in the
quality of receivables. At present, the Company is conducting business operations in
accordance with the Installment Sales Law without any particular problems.
Money Lender Business Law and Interest Limitation Law
The Companys financing business is subject to the Money Lender Business Law, the
Law on Regulation of Receipt of Capital Subscription, Deposits, and Interest Rates, etc.,
and the Interest Limitation Law. For this reason, the Companys financing business, to
which the Money Lender Business Law applies, is subject to a variety of regulations
(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.). In the execution of its lending business, the Company
conducts its operations so as not to violate these regulations.
In the consumer credit industry, the impact of claims for the repayment of excess
interest, regulation limiting total credit extension to a borrower, and reduction of
maximum permitted interest rates has led to a large contraction in the market. However,
in the fiscal year ended March 31, 2014, the market appeared to make a turnaround
after bottoming out.
6. Information-related risk
The nature of the Groups business involves the acquisition, retention, and use of
a large volume of personal information, particularly centered on personal credit
information (including credit card numbers and other stand-alone information). Although
the Group has rigorously handled such information since prior to the enactment of
the Personal Information Protection Law, in the event of a leak or loss of personal
information from the Group or its outside contractors, or the fraudulent use of such
information, the Group may face a loss of credibility and liability for damages, which
may affect the Companys operating performance. In addition, if the Company were to
commit a legal violation as a business operator that handles personal information, it
may be subject to administrative measures, including recommendations and orders.
Led by the Compliance Control Department, the Group strives to ensure that
personal information is handled appropriately and to maintain sound security

management. The Company and three of its consolidated subsidiaries have acquired
Privacy Mark certificationa system to assess measures to protect personal
informationfrom the Japan Information Processing Development Corporation
(JIPDEC), and are working to ensure its effectiveness.
7. Disaster risk
In preparation for unexpected situations, including earthquakes, large-scale disasters,
and accidents, the Group has established a safety-confirmation system, prepared
a major-disaster response manual, formulated operational rules for its Emergency
Response Committee, and established a Business Continuity Plan (BCP). These and
other measures are focused on building the Groups crisis management system.
However, in the event of a crisis whose scale exceeds the Groups assumptions, leading
to decisive damage to the Groups physical and human assets, there is the possibility
that this may result in the suspension of operations or make the continuation of
operations problematic.
8. Tangible asset risk
There is the possibility that tangible assets owned by the Group may sustain damage
owing to natural disasters, such as earthquakes and typhoons, or man-made disasters,
such as acts of terrorism. The Group regularly ascertains the status of the movable
property and real estate assets that it manages, and implements disaster prevention
and crime prevention measures.
9. Personnel risk
Since the Group undertakes business operations involving a wide array of fields, it has
an ongoing program for recruiting high-quality personnel, and it is essential for the
Group to develop and train the people it has employed. However, if the Group were
unable to recruit or retain high-quality personnel, or it became unable to adequately
train its employees, this may affect the Groups operating performance.
10. Reputation risk
The Groups reputation is extremely important to the maintenance of its relationships
with customers, investors, regulatory agencies, and society in general. The Groups
reputation may be damaged by any of a diverse range of factors, including compliance
violations, employee fraud, computer system failures, or the behavior of third parties
that is difficult or impossible to control. If the Group were unable to avoid such factors
or respond adequately to such factors, it may lose current or future customers or
investors, and this may affect the Groups operating performance.
11. Related-company risk
The Group comprises the Company and its affiliates (five consolidated subsidiaries and
one equity-method affiliate). The Groups consolidated-to-nonconsolidated ratio stands
at 0.99 on a total assets basis, and 1.01 on an operating revenue basis (as of March
31, 2014). Hence, within the Groups businesses, the proportion accounted for by the
Company is extremely high. Consequently, even in the event that a business risk relating
to a subsidiary materialized, it would not immediately have a significant effect on the
Group as a whole. However, in the event of the occurrence of an adverse situation, this
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,
2014, 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 2014
27
Consolidated Balance Sheets

Thousands of
U.S. Dollars
Millions of Yen
As of March 31
2014
2013
2014
ASSETS
Current assets:
Cash and deposits
Accounts receivable-installment
Accounts receivable-installment sales-credit guarantee
Lease investment assets
70,883
95,968
694,931
943,782
832,684
9,252,764
1,762,417
1,685,888
17,278,598
14,145
9,134
138,676
Prepaid expenses
1,461
1,346
14,323
Deferred tax assets
2,499
2,705
24,500
Advances paid
32,175
28,570
315,441
Accounts receivable-other
16,434
15,752
161,117
Other
1,391
1,115
13,637
(13,472)
(15,733)
(132,078)
2,831,720
2,657,432
27,761,960
8,310
8,166
81,470
Accumulated depreciation
(4,714)
(4,521)
(46,215)
Buildings and structures, net
3,596
3,644
35,254
Land
14,988
14,988
146,941
Other
4,012
2,824
39,333
(2,150)
(1,731)
(21,078)
Allowance for doubtful accounts

Total current assets
Noncurrent assets:
Property, plant and equipment:
Buildings and structures
Accumulated depreciation
Other, net
Total property, plant and equipment
1,861
1,093
18,245
20,446
19,727
200,450
19,612
13,890
192,274
Intangible assets:
Software
Other
Total intangible assets
35
35
343
19,648
13,925
192,627
16,222
16,194
159,039
2,840
3,445
27,843
364
284
3,568
Investments and other assets:

Investment securities
Bad debts
Long-term prepaid expenses
Deferred tax assets
13
2,957
127
Guarantee deposits
1,883
2,055
18,460
4,273
4,165
40,833
Prepaid pension cost

Net defined benefit asset
Other
1,199
619
11,754
(2,098)
(2,397)
(20,568)
Total investments and other assets
24,589
27,433
241,068
Total noncurrent assets
64,684
61,086
634,156
2,896,405
2,718,518
$ 28,396,127
Total assets
The accompanying notes are an integral part of these statements. Previous years figures are presented solely for the convenience of readers.
28
JACCS CO., LTD.
Annual Report 2014
Thousands of
U.S. Dollars
Millions of Yen
As of March 31
2014
2013
2014
LIABILITIES
Current liabilities:
Notes and accounts payable-trade
Accounts payable-credit guarantee
Short-term loans payable
Current portion of bonds payable
Current portion of long-term loans payable
Commercial papers
39,877
30,496
390,950
1,762,417
1,685,888
17,278,598
150,679
149,829
1,477,245
30,000
86,341
110,208
846,480
148,700
88,800
1,457,843
Accounts payable-other
2,454
2,565
24,058
Accrued expenses
1,062
1,171
10,411
265
2,910
2,598
44,933
42,740
440,519
Income taxes payable

Deposits received
Unearned revenue
Provision for bonuses
Provision for point card certificates
Deferred installment income
Other
Total current liabilities
287
369
2,813
2,665
2,661
26,127
2,534
2,137
24,843
93,002
84,487
911,784
4,564
3,375
44,745
2,339,788
2,237,641
22,939,098
Noncurrent liabilities:
Bonds payable
Long-term loans payable
Provision for retirement benefits
Provision for directors retirement benefits
47,300
2,300
463,725
380,592
356,819
3,731,294
24
29
75
284
Provision for loss on interest repayment
1,319
1,418
12,931
Deferred tax liabilities
1,838
18,019
Long-term guarantee deposited
2,681
2,496
26,284
142
255
1,392
433,903
363,390
4,253,950
2,773,692
2,601,031
27,193,058
Capital stock
16,138
16,138
158,215
Capital surplus
30,482
30,468
298,843
Retained earnings
74,359
69,830
729,009
Treasury stock
(1,768)
(997)
(17,333)
119,211
115,439
1,168,735
3,190
2,416
31,274
(31)
(38)
(303)
(8)
(385)
(78)
276
2,705
3,426
1,993
33,588
74
36
725
Other
Total noncurrent liabilities
Total liabilities
NET ASSETS
Shareholders equity:
Total shareholders equity

Accumulated other comprehensive income:
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Subscription rights to shares
Minority interests
Total net assets
Total liabilities and net assets
17
122,712
117,486
1,203,058
2,896,405
2,718,518
$ 28,396,127
JACCS CO., LTD.
Annual Report 2014
29
Consolidated Statements of Income

2014
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
2013
2014
24,418
17,475
39,183
14,782
7,841
21,481
16,317
38,555
18,348
7,754
$ 239,392
171,323
384,147
144,921
76,872
112
320
0
433
104,134
193
298
0
492
102,950
1,098
3,137
0
4,245
1,020,921
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
83,045
83,833
814,166
7,499
176
1,176
8,852
91,898
8,215
153
1,334
9,704
93,537
73,519
1,725
11,529
86,784
900,960
Operating income
12,236
9,413
119,960
108
79
187
2,403
83
2,486
1,058
774
1,833
162
23
185
12,238
65
55
27
149
11,750
1,588
225
1,813
119,980
560
560
92
92
5,490
5,490
53
14
68
12,730
27
8
3
39
79
11,764
519
137
666
124,803
1,785
4,439
6,225
6,505
0
6,504
4,569
(448)
4,121
7,643
0
7,642
17,500
43,519
61,029
63,774
0
63,764
Non-operating income:
Amortization of negative goodwill
Equity in earnings of affiliates
Miscellaneous income
Total non-operating income
Non-operating expenses
Loss on derivative settlement
Miscellaneous loss
Total non-operating expenses
Ordinary income
Extraordinary income:
Gain on sales of investment securities
Total extraordinary income
Extraordinary loss:
Loss on retirement of noncurrent assets
Loss on sales of investment securities
Loss on valuation of investment securities
Impairment loss
Total extraordinary losses
Income before income taxes and minority interests
Income taxes-current
Income taxes-deferred
Total income taxes
Income before minority interests
Minority interests in income
Net income
30
Thousands of
U.S. Dollars
Millions of Yen
JACCS CO., LTD.
Annual Report 2014
Consolidated Statements of Changes in Net Assets

Millions of Yen

Balance at beginning of year
Changes during the consolidated
fiscal year
Dividends from surplus
Net income
Purchase of treasury stock
Disposal of treasury stock
Changes in the scope of consolidation
Inserted directly into net assets-foreign
currecy translation adjustment
Net changes of items other
than shareholders equity
Total changes during the consolidated
fiscal year
Balance as of March 31, 2014
Capital stock
16,138
Capital surplus
30,468
Shareholders equity
Retained earnings
69,830
13
(2,078)
6,504
103
(916)
146
(2,078)
6,504
(916)
159
103
13
4,529
(770)
3,771
16,138
30,482
74,359
(1,768)
119,211
Treasury stock
(997)
115,439
Millions of Yen

fiscal year
Net income
fiscal year
Accumulated other comprehensive income

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

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

fiscal year
Net income
fiscal year
Capital stock
16,138
Capital surplus
30,468
Shareholders equity
Retained earnings
64,815
(2,624)
7,642
(2)
(831)
17
(2,624)
7,642
(831)
15
Treasury stock
(184)
111,237
5,015
(813)
4,201
16,138
30,468
69,830
(997)
115,439
JACCS CO., LTD.
Annual Report 2014
31
Millions of Yen

fiscal year
Net income
fiscal year

ments of
rights to
for-sale securities
hedges
adjustment
shares
plans
725
(19)
(612)
93
Minority
interests
Total net
assets
16
111,348
(2,624)
7,642
(831)
15
227
227
227
1,691
(18)
1,672
36
1,709
1,691
(18)
227
1,899
36
6,138
2,416
(38)
(385)
1,993
36
17
117,486
Thousands of U.S. Dollars

fiscal year
Net income
fiscal year
Capital stock
$ 158,215
Capital surplus
$ 298,705
Shareholders equity
Retained earnings
$ 684,607
127
(20,372)
63,764
1,009
(8,980)
1,431
(20,372)
63,764
(8,980)
1,558
1,009
127
44,401
(7,549)
36,970
$ 158,215
$ 298,843
$ 729,009
$ (17,333)
$ 1,168,735
Treasury stock
$ (9,774)
$ 1,131,754

fiscal year
Net income
fiscal year

ments of
rights to
for-sale securities
hedges
adjustment
shares
plans
$ 23,686
$ (372)
$ (3,774)
$
$ 19,539
$ 352
JACCS CO., LTD.
Annual Report 2014
Total net
assets
$ 166 $ 1,151,823
(20,372)
63,764
(8,980)
1,558
1,009
3,696
3,696
3,696
7,578
58
2,705
10,352
362
(166)
10,549
7,578
58
3,696
2,705
14,049
362
(166)
51,235
$ 31,274
$ (303)
(78)
$ 2,705
$ 33,588
$ 725
32
Minority
interests
$ $ 1,203,058
Consolidated Statements of Cash Flows

2014
Cash flows from operating activities:
Income before income taxes and minority interests
Depreciation and amortization
Amortization of negative goodwill
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for point card certificates
Increase (decrease) in provision for retirement benefits
Increase (decrease) in provision for loss on interest repayment
Interest and dividends income
Interest expenses
Foreign exchange losses (gains)
Loss on retirement of property, plant and equipment and intangible assets
Loss (gain) on sales of investment securities
Loss (gain) on valuation of investment securities
Equity in earnings (losses) of affiliates
Impairment loss
Decrease (increase) in notes and accounts receivable-trade
Decrease (increase) in accounts receivable-other
Decrease (increase) in prepaid pension costs
Decrease (increase) in net defined benefit asset
Increase (decrease) in notes and accounts payable-trade
Increase (decrease) in deferred installment income
Decrease (increase) in other assets
Increase (decrease) in other liabilities
Subtotal
Interest and dividends income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Thousands of
U.S. Dollars
Millions of Yen
2013
2014
12,730
4,406
(2,563)
10
397
1
(99)
(433)
8,076
10
53
(560)
14
(108)
(191,937)
(680)
4,273
(3,739)
85,967
8,504
(5,349)
3,816
(77,208)
442
(8,210)
(4,452)
(89,429)
11,764
3,279
(2,403)
(4,143)
167
292
(1)
(207)
(492)
8,917
4
27
(83)
3
39
(13,510)
(5,589)
265
30,121
3,649
(3,366)
4
28,736
511
(9,040)
(5,050)
15,157
$124,803
43,196
(25,127)
98
3,892
9
(970)
(4,245)
79,176
98
519
(5,490)
137
(1,058)
(1,881,735)
(6,666)
41,892
(36,656)
842,813
83,372
(52,441)
37,411
(756,941)
4,333
(80,490)
(43,647)
(876,754)
278
(10,591)
(18)
1,906
(96)
152
(11)
25
(8,355)
(520)
749
(7,062)
(1,902)
106
(410)
90
(17)
32
0
(8,934)
2,725
(103,833)
(176)
18,686
(941)
1,490
(107)
245
(81,911)
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
850
59,900
113,415
(113,508)
45,000
(30,000)
159
(916)
(2,078)
72,821
(820)
3,700
96,323
(129,194)
(14,500)
13
(831)
(2,624)
(47,933)
8,333
587,254
1,111,911
(1,112,823)
441,176
(294,117)
1,558
(8,980)
(20,372)
713,931
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
126
(24,836)
95,720
70,883
94
(41,616)
137,337
95,720
1,235
(243,490)
938,431
$694,931
Cash flows from investing activities:

Payments into time deposits
Proceeds from redemption of time deposits
Purchase of property, plant and equipment and intangible assets
Purchase of investment securities
Proceeds from sales of investment securities
Payments for guarantee deposits
Proceeds from collection of guarantee deposits
Payments of loans receivable
Collection of loans receivable
Net decrease (increase) in short-term loans receivable
Net cash provided by (used in) investing activities
JACCS CO., LTD.
Annual Report 2014
33
Notes to the Consolidated Financial Statements

Basis of Presenting the Consolidated Financial Statements

The accompanying consolidated financial statements of JACCS CO., LTD. (the Company) and consolidated subsidiaries (together the Group) have been
prepared in accordance with accounting principles generally accepted in Japan (Japanese GAAP). The consolidated balance sheets, statements of income,
changes in net assets and related notes are translated into English from the consolidated statutory report required under Japanese Companies Act. The
consolidated statements of cash flows and related notes, which are not required under Japanese Companies Act, are prepared and presented in accordance
with the accounting principles and practices applicable to the consolidated statements of cash flows under the Financial Instruments Exchange Law of Japan.
The Company has included the consolidated statements of cash flows and related notes in the consolidated financial statements solely for the convenience of
readers outside Japan.
Certain accounting principles and practices under Japanese GAAP are different in certain respects from International Financial Reporting Standards and
standards in other countries as to application and disclosure requirements. Accordingly, the accompanying consolidated financial statements are intended for
use only by those who are informed about Japanese GAAP.
Translations of Japanese yen amounts into U.S. dollars are presented solely for convenience, using the prevailing approximate exchange rate at March 31,
2014, which was 102 to US$1. These translations should not be construed as a representation that Japanese yen amounts have been, could have been or
could in the future be converted into U.S. dollars at this or any other rate of exchange.
Comparative information is not required to be disclosed under Japanese Companies Act, but is disclosed for the convenience of readers.
1. Scope of Consolidation
(1) Number of consolidated subsidiaries: 5
JACCS Loan-Collection Service Co., Ltd.
JACCS Total Service Co., Ltd.
JACCS Lease Co., Ltd.
JACCS Payment Solutions Co., Ltd.
JACCS International Vietnam Finance Co., Ltd.
Notes:
1. On April 1, 2013, the name of JACCS Car Lease Co., Ltd., was changed to JACCS Lease Co., Ltd.
2. On April 1, 2013, JNS Collection Service Co., Ltd., was merged by the Company.
3. On July 1, 2013, JACCS Information System Service Co., Ltd., was merged by the Company.
4. On August 1, 2013, JACCS Business Support Co., Ltd., was merged by JACCS Total Service Co., Ltd.
5. On September 1, 2013, the Company sold all shares of SUPPORT CORPORATION.
(2) Name of non-consolidated subsidiary
JACCS INTERNATIONAL (Hong Kong) Co., Ltd.
(Reason for excluding from the scope of consolidation)
This non-consolidated subsidiary is small in size and its total assets, operating revenue, net income/loss for the Companys equity interest and retained
earnings for the Companys equity interest do not have a significant impact on the consolidated financial statements.
2. Application of the Equity Method
(1) Number of equity-method affiliates: 1
PT Sasana Artha Finance
(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 Sasana Artha Finance from the consolidated fiscal year-end, the financial statements of PT Sasana Artha
Finance with its individual balance sheet date is used in preparing the consolidated financial statements.
3. Fiscal Years of Consolidated Subsidiaries
The fiscal year-end date of JACCS International Vietnam Finance Co., Ltd. is December 31. The financial statements of JACCS International Vietnam Finance
Co., Ltd. as of and for the year ended December 31 is used in preparing the consolidated financial statements of the Company. All material transactions that
occur during the period from January 1 to March 31 are adjusted for in the consolidation process.
34
JACCS CO., LTD.
Annual Report 2014
4. Summary of Significant Accounting Policies

(1) Basis and method of valuation of significant assets
1. Securities
Available-for-sale securities with fair market value readily available are stated at fair value as of the balance sheet date. The related valuation differences are
directly included in net assets and the cost of available-for-sale securities sold is determined by the moving-average method. Available-for-sale securities
without fair market value readily available are stated at the moving-average cost.
2. Derivatives
Derivatives are stated at fair value.
(2) Depreciation of significant depreciable assets
1. Property, plant and equipment (except for leased assets)
The declining-balance method is used, however, the straight-line method is used for buildings (excluding building fixtures) acquired on or after April 1, 1998.
2. Intangible assets (except for leased assets)
Software for internal use is amortized over the estimated useful lives using the straight-line method (the maximum period being 5 years).
3. Leased assets
Leased assets related to finance leases without transferring ownership are depreciated over the lease period as useful life using the straight-line method with
no residual value.
(3) Accounting for significant allowance and provisions
1. Allowance for doubtful accounts
Allowance for doubtful accounts is provided for possible losses on the collection of receivables. The amount of the allowance for general receivables is based
on the past write-off ratio. For certain receivables, such as the ones from debtors whose solvency is in doubt, the recoverability of each receivable is examined
individually and the estimated unrecoverable amounts are recognized as the allowance.
2. Provision for bonuses
For payment of bonuses to employees and executive officers having employee positions, provision for bonuses is provided for in the amount that is expected
to be paid.
3. Provision for point card certificates
For covering the cost of future card-point redemption when credit card members use their card-points given by the Company, the provision for point card
certificates is provided for in the amount that is expected to be used as of the balance sheet date.
4. Provision for directors retirement benefits
For payment of retirement benefits to directors and corporate auditors, provision for directors retirement benefits is provided for in the amount required to be
accrued at year-end in accordance with internal rules. Provided amounts on the consolidated balance sheets are solely for consolidated subsidiaries.
5. Provision for loss on interest repayment
Provision for loss on interest repayment is provided in order to prepare for requests for the repayment of interest on loans exceeding the Interest Rate Restriction
Act in the future, in the amount deemed necessary based on an estimate of the future repayment amount in consideration of the actual past results.
(4) Accounting method for employee retirement benefits
1. Method of period attribution for estimated retirement benefits
To calculate the employee retirement benefit obligations, the point criteria is applied in attributing the estimated retirement benefits up to the end of this
consolidated fiscal year.
2. Methods for amortizing actuarial differences and past service costs
Past service costs are amortized using the straight-line method over a certain number of years (5 years) within the average remaining service period of the
employees as of the time such costs are incurred. With respect to actuarial differences for each consolidated fiscal year, the amount divided proportionally using
the straight-line method over a certain number of years (5 years) within the average remaining service period of employees as of the arising of such differences is
amortized from the immediately following consolidated fiscal year.
(5) Recognition of operating revenues
a. Revenue from individual customers
Revenue from individual customers is recognized at the time of payment due date by the following method:
Revenue from credit card business:
remaining debt balance method
Revenue from installment sales finance business: remaining debt balance method
Revenue from credit guarantee:
(partially at time of concluding
the guarantee contract)
Financing revenue:
JACCS CO., LTD.
Annual Report 2014
35
b. Commission from member stores

Commission from member stores is recognized at the time of computing volume of new contracts.
(6) Translation of significant assets and liabilities denominated in foreign currencies into yen
Monetary assets and liabilities denominated in foreign currencies have been translated into yen at the exchange rates in effect at the fiscal year-end. The
resulting exchange gain or loss is charged or credited to income. Assets and liabilities of the overseas subsidiary have been translated into yen at the
exchange rates in effect as of the settlement date of them, and revenues and expenses of the overseas subsidiary have been translated into yen at the
average rates prevailing during the period. The resulting translation differences are included in foreign currency translation adjustment in net assets.
(7) Accounting for significant hedging activities
a. Accounting for hedging activities
When derivative financial instruments are used as hedges and meet certain hedging criteria, gains or losses resulting from changes in the fair values of the
derivative financial instruments are deferred until the corresponding losses or gains on the hedged items are recognized.
Interest rate swaps which qualify for exceptional treatments are accounted for according to the exceptional treatments.
b. Hedging instruments and hedged items
Hedging instruments...........Derivatives transactions (interest rate swap)
Hedged items......................Loans payable
c. Hedging policy
Derivatives transactions are utilized to reduce risks arising from interest rate and foreign exchange fluctuations in the future.
d. Assessment of the efficacy of hedging activities
The aggregate of changes in cash flows from the hedging instruments and the hedged items is compared to every quarterly account, and evaluation of the
effectiveness of hedging activities is made. With regard to interest rate swaps accounted for according to the exceptional treatments, assessment of the
effectiveness is omitted.
(8) Amortization of negative goodwill
Negative goodwill is amortized equally over five years.
(9) Other significant basis of presenting the consolidated financial statements
Accounting for consumption taxes
Consumption taxes are excluded from each transaction amount. Consumption taxes paid at acquisition of noncurrent assets, which are not deducted on the
consumption taxes calculation, are recorded as Other in investments and other assets and amortized equally over five years.
Changes in Accounting Policies

Effective from the year ended March 31, 2014, the Company and its consolidated domestic subsidiaries have applied the Accounting Standard for Retirement
Benefits (ASBJ Statement No. 26, May 17, 2012 (hereinafter, the Accounting Standard)) and the Guidance on Accounting Standard for Retirement Benefits
(ASBJ Guidance No. 25, May 17, 2012 (hereinafter, the Guidance)) except for the article 35 of the Accounting Standard and the article 67 of the Guidance and
actuarial gains and losses and past service costs that are yet to be recognized have been recognized and the difference between retirement benefit obligations
and plan assets has been recognized as a net defined benefit asset.
In accordance with article 37 of the Accounting Standard, the effect of the change in accounting policies arising from initial application has been recognized
in remeasurements of defined benefit plans in accumulated other comprehensive income.
As a result of the application, a net defined benefit asset in the amount of 426 million (US$4,176 thousand) has been recognized, deferred tax liabilities
has increased by 151 million (US$1,480 thousand) and accumulated other comprehensive income has increased by 274 million (US$2,686 thousand)
at this year end. However, remeasurements of defined benefit plans for an equity method company abroad are not included in the amount affected by this
accounting policy change.
In addition, net assets per share has increased by 1.60 (US$0.01).
36
JACCS CO., LTD.
Annual Report 2014
Change in Method of Presentation

Prior to April 1, 2013, Purchase of investments in subsidiaries resulting in change in scope of consolidation was disclosed separately in cash flows from
investing activities of the consolidated statement of cash flows. Since during this fiscal year ended March 31, 2014, the items of this account have been
reviewed with the objective of increasing clarity, such amount is now included in Purchase of investment securities within cash flows from investing
activities of the consolidated statement of cash flows. The amount included in Purchase of investment securities for the year ended March 31, 2013, was
4 million (US$39 thousand).
Notes to the Consolidated Balance Sheets

Thousands of
U.S. Dollars
Millions of Yen
1. Pledged Assets
Assets pledged as collateral:
Debt secured by the above collateral:
Current portion of long-term loans payable
Total
2014
2013
2014
284,259
320,401
$ 2,786,852
59,925
34,324
190,772
285,021
78,075
70,263
172,501
320,839
$ 587,500
336,509
1,870,313
$ 2,794,323
Notes: Comparative information is not required to be disclosed under Japanese Companies Act, but is disclosed for the convenience of readers.
2. Guarantee obligations
The Company has a guarantee obligation in relation to the borrowings from financial institutions of a company outside the scope of consolidation.
PT Sasana Artha Finance
1,958 million (US$19,196 thousand)
(220,000 million Indonesian rupiahs)
Foreign currency-denominated guarantee obligations are translated into yen at the exchange rate prevailing on the account closing date.
Thousands of
U.S. Dollars
Millions of Yen
3. Deferred Installment Income

Credit card business
Installment sales finance
Credit guarantee
Financing
Other
Total
2014
2013
834
29,907
62,228
32
0
93,002
783
22,623
61,032
47
0
84,487
2014
$
8,176
293,205
610,078
313
0
$ 911,784
Note: Comparative information is not required to be disclosed under Japanese Companies Act, but is disclosed for the convenience of readers.
JACCS CO., LTD.
Annual Report 2014
37
Notes to the Consolidated Statements of Changes in Net Assets

1. Type and Number of Shares Issued as of March 31, 2014 and 2013
2014
2013
Common stock: 175,395,808 shares 175,395,808 shares
2. Matters Concerning Dividends
2014
(1) Cash dividends paid
Resolution
June 27, 2013 Ordinary General
Meeting of Shareholders
November 5, 2013
Board of Directors Meeting
Type of shares
Common stock
Common stock
Total amount of dividend

1,050 million
(US$10,294 thousand)
1,049 million
Dividend per share

6.00
(US$0.058)
6.00
(US$0.058)
Record date
Effective date
March 31, 2013
June 28, 2013
September 30, 2013
December 5, 2013
Notes: The total dividend amount approved by a resolution of the Ordinary General Meeting of Shareholders held on June 27, 2013, includes 11 million (US$107 thousand) for The
Master Trust Bank of Japan, Ltd. (Employee Shareholding ESOP Trust Account 75579).
The total dividend amount approved by a resolution of the Board of Directors on November 5, 2013, includes 10 million (US$98 thousand) for The Master Trust Bank of
Japan, Ltd. (Employee Shareholding ESOP Trust Account 75579).
(2) Of the dividends whose record date belongs to the current fiscal year, the dividend whose effective date falls in the following fiscal year is as follows:
Resolution
Type of shares
Dividend source
Common stock
Retained earnings

1,383 million
Dividend per share

8.00
(US$0.078)
Record date
Effective date
March 31, 2014
June 27, 2014
Note: The total dividend amount planned for a resolution at the Ordinary General Meeting of Shareholders held on June 26, 2014, includes 12 million (US$117 thousand) for The
Master Trust Bank of Japan, Ltd. (Employee Shareholding ESOP Trust Account 75579).
2013
(1) Cash dividends paid
Resolution
November 5, 2012
Board of Directors Meeting
Type of shares
Dividend per share
Record date
Effective date
Common stock
1,750 million
10.00
March 31, 2012
June 29, 2012
Common stock
874 million
5.00
September 30, 2012
December 10, 2012
(2) Of the dividends whose record date belongs to the fiscal year ended March 31, 2013, the dividend whose effective date falls in the following fiscal year is as follows:
Resolution
Type of shares
Dividend source
Dividend per share
Record date
Effective date
Common stock
Retained earnings
1,050 million
6.00
March 31, 2013
June 28, 2013
Note: The total dividend amount approved by a resolution of the Ordinary General Meeting of Shareholders held on June 27, 2013, includes 11 million for The Master Trust Bank of
Japan, Ltd. (Employee Shareholding ESOP Trust Account 75579).
3. Subscription rights to shares as of March 31, 2014 and 2013

2014
2013
Common stock: 385,000 shares 289,000 shares
38
JACCS CO., LTD.
Annual Report 2014
Notes to the Consolidated Statements of Cash Flows

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

Less: Time deposits with deposit term of over 3 months
Cash and cash equivalents
2014
70,883
70,883
2013
95,968
(247)
95,720
2014
$ 694,931
$ 694,931
Notes to Financial Instruments

1. Outline of Utilization of Financial Instruments
(1) Management policies
The Group operates consumer credit services including installment sales, credit card, credit guarantee and financing. To do such business, the Group
borrows money from banks as indirect finance, and raises money by issuing bonds and commercial papers in consideration of market conditions and length
of finance. Thereby, the Group holds financial assets and liabilities having interest rate fluctuation risks. To avoid its unfavorable effect, the Company applies
asset liability management (ALM) using derivatives transactions as a measure. In addition, a consolidated subsidiary operates leasing business.
(2) Contents of financial instruments and their risks
Financial assets held by the Group, which are mainly installment receivables on domestic installment sales finance and credit card business, are exposed to
the credit risks of the corresponding customers default of payments.
In terms of investment securities, which are mainly composed of equity stocks related to business or capital tie-ups and the like with business partners,
these assets are exposed to the credit risk of the issuer and the risk of market value fluctuations.
Loans payable, bonds payable and commercial papers are exposed to liquidity risk. There exists the possibility that the Group may have difficulty making
payment on a due date, such as the Company may not be able to raise funds in the markets under certain circumstances. Loans payable with variable
interest rates expose the Company to the risk of interest rate fluctuation. To avoid such risks, a part of loans payable is hedged by interest swap transactions.
Deposits at banks in foreign currencies are exposed to fluctuation of foreign exchanges.
Derivatives transactions include interest swap transactions which are carried as a measure of ALM. Interest fluctuation risks on loans payable hedged
by such hedging instruments are accounted for by the hedge accounting method. The effectiveness of hedging is assessed by comparing and evaluating
accumulated cash flow change of hedged items and that of hedging instruments during the period from the start of hedging and assessment time. In
addition, the Company uses exceptional treatments permitted for interest rate swaps hedging long-term loans payable.
(3) Risk management system of financial instruments
1. Control of credit risk
The Group establishes and operates credit control systems which practice credit assessment, establishment of credit limit, credit information control,
internal rating, setting of guarantee and mortgage and response to loans in trouble in conformity with the rules of credit control for each installment
loan. These credit controls are carried out by each credit investigation section and each area control division. In addition, conditions of credit control are
reviewed by the Credit Supervision & Operation Department, the Credit Administration Department and the Inspection Department.
2. Control of market risk
a. Control of interest risk
The Group controls interest fluctuation risk by means of ALM. Regulations and internal rules of ALM specify risk control measures and procedures and
the results of control are confirmed by the Board of Directors in conformity with ALM policies decided by the ALM Committee. The Finance Department
analyzes daily interest rate sensitivity based on estimated interest rates and makes a report every other month to the ALM Committee. Interest fluctuation
risks are hedged by interest rate swaps as a part of ALM.
b. Control of foreign exchange risk
The Group utilizes partially forward contracts, as for each matter, to cope with foreign exchange fluctuation risks, and there is not the handling now, but
may use part forward exchange contracts in future.
c. Control of market fluctuation risk
As investment securities are mainly composed of equity shares issued by companies which have relations with the Company in transactions or in capital
coalition, market environment and financial conditions of the issuing companies are monitored periodically. The Company carries out ongoing monitoring
of prices of investment securities. By considering the circumstances comprehensively and reporting these to senior management, the Company aims to
reduce the price fluctuation risk of its equity securities holdings.
JACCS CO., LTD.
Annual Report 2014
39
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, 2014, the Company calculates that if the index interest rate had been higher by 10 basis point (0.1%), financial expenses would
increase 179 million (US$1,754 thousand).
However, influence exceeding the amount of calculation may occur if a fluctuation occurs beyond the rational expected band of the interest rate.
3. Control of liquidity risk on fundraising
The Group controls timely fund operations of the total group by ALM and manages liquidity risk by diversification of fundraising measures, acquisition of
commitment lines from multiple financial institutions and adjustment of length of fundraising in consideration of the market environment.
(4) Supplementary explanation to fair values of financial instruments
Fair values of financial instruments are composed of market prices and rationally computed prices in case market prices are not available. As the
computation of prices is subject to certain presumptions, prices may change under different presumptions. Contractual values of derivatives transactions in 2.
Fair Values of Financial Instruments do not represent the market risks on derivatives themselves.
2. Fair Values of Financial Instruments

The tables below show the amounts of financial instruments recorded in the consolidated balance sheets and their fair values as of March 31, 2014 and 2013,
as well as their differences. Financial instruments of which fair values were hardly available are not represented herein (See Note 2).
Millions of Yen
March 31, 2014

Cash and deposits
Accounts receivable-installment:
Investment securities:
Available-for-sale securities
Total assets
Commercial papers
Bonds payable*1
Long-term loans payable*2
Total liabilities
Derivatives transactions*3:
Hedge accounting applied
Total derivatives transactions
Other:
Loan guarantee contracts
Consolidated balance
sheet amount
70,883
943,782
(13,472)
(30,541)
899,768
Fair value
70,883
JACCS CO., LTD.
Annual Report 2014
927,193
27,425
13,925
984,578
150,679
148,700
47,300
466,934
813,613
13,925
1,012,003
150,679
148,700
48,098
470,206
817,683
27,425
798
3,271
4,070
(49)
(49)
(49)
(49)
209,229
*1 Current portion of long-term loans payable is included in long-term loans payable.

*2 Figures presented are net receivable or payable totals resulting from derivatives transactions. If the total is a payable amount, the figure is shown in ( ).
40
Differences
Millions of Yen
March 31, 2013

Cash and deposits
sheet amount
95,968
832,684
(15,733)
(23,318)
793,632
Total assets
Commercial papers
Bonds payable*1
Total liabilities
Other:
Fair value
95,968
Differences
824,485
30,853
13,950
903,550
149,829
88,800
32,300
467,028
737,957
13,950
934,403
149,829
88,800
32,442
472,299
743,371
30,853
142
5,271
5,414
(59)
(59)
(59)
(59)
209,455
*1 Current portion of bonds payable is included in bonds payable.

March 31, 2014

Cash and deposits
Total assets
Commercial papers
Bonds payable*1
Total liabilities
Other:
sheet amount
$ 694,931
9,252,764
(132,078)
(299,421)
8,821,254
Fair value
$ 694,931
Differences
$
9,090,127
268,872
136,519
$ 9,652,725
$ 1,477,245
1,457,843
463,725
4,577,784
$ 7,976,598
136,519
$ 9,921,598
$ 1,477,245
1,457,843
471,549
4,609,862
$ 8,016,500
$ 268,872
$
7,823
32,068
$ 39,901
$
$
$
$
$
$
(480)
(480)
(480)
(480)
$ 2,051,264

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.
JACCS CO., LTD.
Annual Report 2014
41
(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.
Liabilities:
(1) Short-term loans payable
These instruments are settled in a short time and fair value is closely equal to book value. The fair value is, therefore, stated at book value.
(2) Commercial papers
These instruments are settled in a short time and fair value is closely equal to book value. The fair value is, therefore, stated at book value.
(3) Bonds payable
Fair values of bonds payable are measured at market prices.
(4) Long-term loans payable
Book values of long-term loans payable with variable interest rate are deemed fair values as the prices reflect market timely and credit conditions of the
Company have not changed significantly after time of borrowing. Book values of long-term loans payable with fixed interest are computed by discounting
probable payment amounts of principals and interest by expected interest rate of similar borrowing, by group of length of borrowing.
Derivatives transactions:
Contractual values or principal equivalents under the contracts of derivatives transactions as of March 31, 2014 and 2013, accounted for by hedge accounting,
are shown below, by each accounting for hedging activity.
March 31, 2014
Millions of Yen
Accounting for hedging activities

Principle
Type of derivatives transactions

Interest rate swap
Payment fixed/Receipt variable
Total
Hedged items
Contractual value
Total
Over 1 year
Fair value
4,000
4,000
(49)*1
4,000
4,000
(49)
March 31, 2013
Millions of Yen

Principle
Exceptional treatment of
interest rate swap

Interest rate swap
Interest rate swap
Total
Hedged items
Contractual value
Total
Over 1 year
Fair value
5,000
4,000
(59)*1
1,500
*2
6,500
4,000
March 31, 2014
(59)

Principle

Interest rate swap
Total
Hedged items
Contractual value
Total
Over 1 year
Fair value
$ 39,215
$ 39,215
$ (480)*1
$ 39,215
$ 39,215
$ (480)
*1 Fair value is based on the price presented by the related financial institutions.
*2 As fair value of interest rate swap accounted for by exceptional treatment is measured along with long-term loans payable (hedged item), the details are shown in the above Liabilities (4).
42
JACCS CO., LTD.
Annual Report 2014
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
Description
Unlisted shares
2014
Book value
2,296
2013
Book value
2,244
2014
Book value
$ 22,509
Fair values of the above shares without market prices are not represented herein as calculation of their fair values are hardly available. For the year ended March 31, 2013,
impairment loss of the unlisted shares amounted to 3 million.
Note 3: Maturity of monetary assets after the balance sheet date

March 31, 2014
Cash and deposits
Total
Millions of Yen
Within one year

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

95 968
298,917
394,886
1 to 2 years
136,698
136,698
2 to 3 years
96,715
96,715
Within one year

$ 694,931
3,215,068
$ 3,910,009
1 to 2 years
$
1,500,058
$ 1,500,058
2 to 3 years
$
1,075,941
$ 1,075,941
March 31, 2013

Cash and deposits
Total
4 to 5 years
47,409
47,409
Over 5 years
231,791
231,791
4 to 5 years
37,357
37,357
Over 5 years
196,119
196,119
4 to 5 years
$
464,794
$ 464,794
Over 5 years
$
2,272,460
$ 2,272,460
Millions of Yen
March 31, 2014

Cash and deposits
Accounts receivable installment
Total
3 to 4 years
73,889
73,889
3 to 4 years
66,875
66,875
3 to 4 years
$
724,401
$ 724,401
Note 4: Repayment schedule of bonds payable, long-term loans payable and other interest-bearing liabilities after the balance sheet date
March 31, 2014
Commercial papers
Bonds payable
Total
Millions of Yen
Within one year

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

149,829
88,800
30,000
110,208
378,837
1 to 2 years
86,341
86,341
2 to 3 years
2,300
106,700
109,000
March 31, 2013

Commercial papers
Bonds payable
Total
3 to 4 years
63,715
63,715
4 to 5 years
15,000
36,850
51,850
Over 5 years
30,000
29,900
59,900
4 to 5 years
58,715
58,715
Over 5 years
18,800
18,800
Millions of Yen
3 to 4 years
86,261
86,261
JACCS CO., LTD.
Annual Report 2014
43
March 31, 2014

Commercial papers
Bonds payable
Total
Within one year

$ 1,477,245
1,457,843
846,480
$ 3,781,568
1 to 2 years
$
22,549
1,046,078
$ 1,068,627
2 to 3 years
$
1,406,137
$ 1,406,137
3 to 4 years
$
624,656
$ 624,656
4 to 5 years
$
147,058
361,274
$ 508,333
Over 5 years
$
294,117
293,137
$ 587,254
(Investment and rental properties)

Disclosure has been omitted since this is considered immaterial.
(Per share information)
Yen
2014
715.38
37.71
Net assets per share

Net income per share
U.S. Dollars
2013
678.38
43.72
2014
$ 7.01
0.36
Other Notes
1. Income Taxes
(1) Significant components of deferred tax assets and liabilities as of March 31, 2014 and 2013 are as follows:
Thousands of
U.S. Dollars
Millions of Yen
2014
Deferred tax assets:
Operating loss carryforwards
Provision for bonuses
Provision for point card certificates
Valuation difference on investments in subsidiaries
Investment securities
Depreciation
Other
Less amounts offset against deferred tax liabilities
Subtotal
Valuation allowance
Total deferred tax assets
Deferred tax liabilities:
Net defined benefit asset
Valuation difference on available-for-sale securities
Other
Less amounts offset against deferred tax assets
Total deferred tax liabilities
Net deferred tax assets
2013
2014
625
939
899
31
468
490
579
782
(1,083)
3,733
(1,220)
2,512
4,012
1,004
810
26
4,555
537
494
388
1,273
(2,625)
10,477
(4,814)
5,662
$ 6,127
9,205
8,813
303
4,588
4,803
5,676
7,666
(10,617)
36,598
(11,960)
$ 24,627
(1,573)
(1,051)
(1)
2,625
5,662
(1,478)
(1,442)
(0)
1,083
(1,838)
673
(14,490)
(14,137)
(0)
10,617
$ (18,019)
$ 6,598
(2) Modifications to the amount of deferred tax assets and liabilities due to changes of corporate taxation rates
Due to the promulgation of the Act for Partial Amendment of the Income Tax Act, etc. (Act No.10, 2014) on March 31, 2014, the Special Reconstruction Corporation
Tax will not be imposed from the fiscal year starting from April 1, 2014 or later. As a result, the effective statutory tax rate to be used in the calculation of deferred
tax assets and liabilities, in association with temporary differences that are expected to be settled in the fiscal year starting from April 1, 2014, has been revised to
35.5% from 37.9% of the prior fiscal year. The effect of these changes for this consolidated fiscal year is immaterial on the consolidated financial statement.
44
JACCS CO., LTD.
Annual Report 2014
2. Retirement Benefits
2014
(1) Overview of the retirement benefit plans adopted
To provide for employee retirement benefits, the Company and its consolidated subsidiaries operate a funded defined-benefit plan and a defined contribution
plan. Under the defined benefit corporate pension plan (fully funded plan), a lump sum or pension are paid in accordance with the employees salary and the
length of service.
(2) Defined benefit plans
Movement in retirement benefit obligations, except plan applied simplified method
Millions of Yen
Balance at April 1, 2013

Service cost
Interest cost
Actuarial loss
Benefits paid
Balance at March 31, 2014
2014
19,264
1,047
192
85
(756)
19,834
Thousand of U.S. Dollars
2014
$188,862
10,264
1,882
833
(7,411)
$194,450
Movement in plan assets, except plan applied simplified method

Millions of Yen

Expected return on plan assets
Actuarial gain
Contributions paid by the employer
Benefits paid
2014
22,428
448
810
1,068
(756)
23,999
2014
$219,882
4,392
7,941
10,470
(7,411)
$235,284
Movement in liability for retirement benefits of plan applied simplified method

Retirement benefit costs
Benefits paid
Contributions paid by the employer
Other
Millions of Yen
2014
2014
24
1
(25)
$ 235
9
(245)
$
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 March 31, 2014
Liabilities for retirement benefits
Assets for retirement benefits
Net defined benefit liability (asset) at March 31, 2014
2014
19,834
(23,999)
(4,165)
(4,165)
(4,165)
(4,165)
2014
$ 194,450
(235,284)
(40,833)
(40,833)
(40,833)
$ (40,833)
JACCS CO., LTD.
Annual Report 2014
45
Retirement benefit costs

Millions of Yen
2014
Service cost
Interest cost
Net actuarial loss amortization
Past service costs amortization
Retirement benefit costs based on the simplified method
Other
Total retirement benefit costs for the fiscal year ended March 31, 2014
2014
$10,264
1,882
(4,392)
7,941
9
294
$16,009
1,047
192
(448)
810
1
30
1,633
Remeasurements of defined benefit plans
Past service costs that are yet to be recognized

Actuarial gains and losses that are yet to be recognized
Total balance at March 31, 2014
Millions of Yen
2014
2014

(426)
(426)
(4,176)
$(4,176)
Plan assets
1. Plan assets comprise:
2014
Bonds
Equity securities
General account
Cash and deposits
Other
Total
43%
24%
28%
2%
3%
100%
2. Long-term expected rate of return

Current and target asset allocations, historical and expected returns on various categories of plan assets have been considered in determining the long-term
expected rate of return.
Actuarial assumptions
The principal actuarial assumptions at March 31, 2014 follow:
2014
Discount rate
Long-term expected rate of return
1.0%
2.0%
(3) Defined contribution plan

The required contribution amount for the Company and its consolidated subsidiaries to the defined contribution plan is 458 million (U.S.$4,490 thousand).
46
JACCS CO., LTD.
Annual Report 2014
2013
(1) Overview of the retirement benefit plan adopted
The Company and its domestic consolidated subsidiaries have a defined benefit corporate pension plan as its defined-benefit plan. There are also cases when
an employee is given a severance pay premium on leaving the Company.
(2) Projected benefit obligation
Millions of Yen
2013
Projected benefit obligation
Pension assets
Unfunded projected benefit obligation (+)
Unrecognized actuarial differences
Unrecognized prior service cost
Net amount (++)
Provision for retirement benefits (-)
(19,288)
22.428
3.139
1,109
4,249
4,273
(24)
Note: Domestic consolidated subsidiaries apply the simplified method for calculating projected benefit obligation.
(3) Retirement benefit expenses
Millions of Yen
2013
Service costs
Interest cost on projected benefit obligation
Amortization of actuarial differences
Additional retirement benefits paid
Contribution to defined contribution pension plan
Retirement benefit expenses
892
342
393
1,361
17
451
2,672
(4) Assumptions in calculating projected benefit obligation

Period allocation method of estimated retirement payments
Discount rate
Expected rate of return on plan assets
Amortization of prior service costs
Amortization of actuarial differences
Difference incurred on accounting change
2013
Point basis
1.0%
2.0%
5 years
5 years
Charged to income at occurrence
Notes: Comparative information is not required to be disclosed under Japanese Companies Act, but is disclosed for the convenience of readers.
Figures in these consolidated financial statements are rounded down to the nearest million of yen.
JACCS CO., LTD.
Annual Report 2014
47
Independent Auditors Report
To the Board of Directors of JACCS Co., Ltd.

We have audited the accompanying consolidated financial statements of JACCS Co., Ltd. and its consolidated subsidiaries, which comprise the consolidated balance sheets
as at March 31, 2014 and the consolidated statements of income, statements of changes in net assets and statements of cash flows for the years then ended and the
related notes.
Managements Responsibility for the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with accounting principles generally accepted
in Japan, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material
misstatements, whether due to fraud or error.
Auditors Responsibility
Our responsibility is to express an opinion on the consolidated financial statements based on our audit as independent auditor. We conducted our audit in accordance with
auditing standards generally accepted in Japan. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated
financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected
depend on our judgement, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making
those risk assessments, we consider internal control relevant to the entitys preparation and fair presentation of the consolidated financial statements in order to design audit
procedures that are appropriate in the circumstances, while the objective of the financial statement audit is not for the purpose of expressing an opinion on the effectiveness
of the entitys internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by
management, as well as evaluating the overall presentation of the consolidated financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of JACCS Co., Ltd. and its consolidated subsidiaries as at
March 31, 2014 and its financial performance and cash flows for the years then ended in accordance with accounting principles generally accepted in Japan.
Emphasis of Matter
Without qualifying our opinion, we draw attention to the notes to the consolidated financial statements, which describe the basis of accounting. The consolidated balance
sheets, consolidated statements of income, consolidated statements of changes in net assets and related notes have been translated into English from the consolidated
statutory reports required under Japanese Companies Act. The consolidated statements of cash flows and its related notes, which are not required under Japanese
Companies Act, are prepared and presented in accordance with accounting principles and practices applicable to the consolidated statements of cash flows under the
Financial Instruments Exchange Law of Japan.
Convenience Translation
The U.S. dollar amounts in the accompanying consolidated financial statements with respect to the year ended March 31, 2014 are presented solely for convenience.
Our audit also included the translation of yen amounts into U.S. dollar amounts and, in our opinion, such translation has been made on the basis described in notes to the
consolidated financial statements.
Other Matter
Our firm and engagement partners have no interest in the Company which should be disclosed pursuant to the provisions of the Certified Public Accountants Law of Japan.
June 26, 2014

Tokyo, Japan
48
JACCS CO., LTD.
Annual Report 2014
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JACCS CO., LTD.
Annual Report 2014
49
Corporate Directory
(As of July 1, 2014)
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$158 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:
Sendai MT Bldg., 13th Floor,
2-3, Tsutsuji-ga-oka 4-chome,
Miyagino-ku, Sendai 983-8544
Phone: (022) 292-4475
Chubu Area:
Business Volume:
Nagoya Hirokoji Bldg., 9th Floor,
(Year ended March 31, 2014)
3-1, Sakae 2-chome, Naka-ku,
2,784,532 million (US$27,299 million)
Nagoya 460-0008
Phone: (052) 221-7985
(Year ended March 31, 2014)

Kinki Area:
2,660 (Parent)
Meiji Yasuda Seimei Osaka
3,355 (Consolidated)
Midousuji Bldg., 8th Floor,
Kita-kanto Area:
Sino Omiya North Wing Bldg.,
18th Floor,
10-16, Sakuragi-cho 1-chome,
Omiya-ku, Saitama 330-9696
Phone: (048) 644-1722
Shutoken Area:
Shin Meguro Tokyu Bldg.,
7th Floor,
25-2, Kami-Osaki 2-chome, Shinagawa-ku,
Tokyo 141-8659
Phone: (03) 5487-4611
1-1 Fushimi 4-chome, Chuo-ku,
Network:
Osaka 541-0044
Branches & Sales Offices: 65
Phone: (06) 6201-6350

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

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

Phone: (092) 433-1290
50
JACCS CO., LTD.
Number of Employees:
Annual Report 2014
Investor Information
(As of March 31, 2014)
Number Of Shareholders:
Principal Shareholders:
6,983
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Shares Outstanding:
Japan Trustee Services Bank, Ltd. (Trust Accounts)
9.13
175,395,808
The Dai-ichi Mutual Life Insurance Company, Limited
3.87
Meiji Yasuda Life Insurance Company
3.63
Stock Listings:
Tokyo Stock Exchange (First Section)
Sapporo Stock Exchange
Transfer Agent:
20.00%
The Master Trust Bank of Japan, Ltd. (Trust Accounts)
3.00
Shareholding Association of JACCS
2.52
JACCS Co., Ltd. Employee Stock Ownership Association
1.97
Nippon Life Insurance Company
1.67
Mitsubishi UFJ Trust and Banking Corporation
Mitsubishi UFJ Trust and Banking Corporation
1.60
4-5, Marunouchi 1-chome, Chiyoda-ku,
Mizuho Bank, Ltd.
1.50
Tokyo 100-8212, Japan
Total
48.89%
Common Stock Price Range:
(Tokyo Stock Exchange)

FY2011
First Quarter
FY2012
High
Low
High
Low
High
Low
433
245
188
310
203
707
Second Quarter
274
216
313
227
609
425
Third Quarter
279
222
506
277
528
426
Fourth Quarter
306
227
627
392
533
404
(Yen)
(Yen)
1,000
18,000
Monthly Range of Stock Price (Left Scale)
Stock Held by Investor Type
FY2013
Other Corporations
3.9%
Securities Companies
1.2%
Overseas
Institutions
14.6%
Individuals and Others

16.6%
Financial Institutions
63.7%
Nikkei 225 Stock Index (Right Scale)
800
16,000
600
14,000
400
12,000
200
10,000
8,000
FY2011
FY2012
FY2013
Cash Dividends:
Yearly
Interim
FY2011
FY2012
FY2013
10.00
11.00
14.00
5.00
6.00
JACCS CO., LTD.
Annual Report 2014
51
Registered Head Office:

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

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60 YEARS AND BEYOND

Annual Report 2014

Hokkaido, in 1954. In the 60 years since then, JACCS has continued to

Developing our overseas

and JCB brands, and has a membership base of approximately 6,800

(MUFG), in 2008 through a third-party allocation of new shares.

To coincide with the 60th anniversary of JACCS founding, the

its expansion in the ASEAN region through the launch of business

Founders / Board of Directors and Audit & Supervisory Board Members

Five-Year Financial Highlights

Expanding Market Presence in Indonesia

Creating New Businesses

JACCS CO., LTD.

Annual Report 2014

The Company celebrated its 60th anniversary in June 2014.

Depart Sinyohanbai Co., Ltd., established in Hakodate,

Established the Tokyo Office (currently

Company name was changed

Established the Housing Loan Center

Hokkaido, with paid-in capital of 3.3 million. Began monthly

the Tokyo Branch) as the Companys

to JACCS Co., Ltd.

(currently the Tokyo Housing Loan Center)

installment credit service for use at department stores based

first presence in the Kanto region

on the issuance of installment-shopping coupons to members

To coincide with the 5th anniversary

In collaboration with large manufacturers,

Shares listed on the Sapporo

Listed on the First Section of the Tokyo

Began issuing internationally accepted

of establishment, the Companys

began providing a full-fledged shopping

credit cards, JACCS Visa Card and

name was changed to Kitanihon

Sinyohanbai Co., Ltd.

Head office functions transferred to Tokyo

Sapporo Securities Exchange

Tokyo head office

JACCS first internationally

JACCS Founding Philosophy

JACCS CO., LTD.

Annual Report 2014

implementation of strategies to improve business profitability.

Began issuing JACCS JCB Card

Began operating a state-of-the-art core

JACCS became an equity-method affiliate

Acquired a 40% equity stake in

Renewal of the corporate logo

computer system called JANET, the first

of The Bank of Tokyo-Mitsubishi UFJ,

Indonesian company PT Sasana Artha

such online system in the industry to run

Ltd., through a third-party allocation of

Gearing up for the Next

Head office transferred to the Companys

Celebrated the 50th anniversary of

Took over the shopping credit business of

Established overseas subsidiary JACCS

Newly merged PT Mitra

new main building, Ebisu Neonato, in

Mitsubishi UFJ NICOS Co., Ltd.

International Vietnam Finance Co., Ltd.

Pinasthika Mustika Finance