Mar 10, 2017 Possible Reason for a Plunge in J Trust’s Share Price on March 8, 2017

March 10, 2017

Company Name: JTRUST ASIA PTE.LTD.
Representative: Nobuyoshi Fujisawa, Managing Director,
CEO Contact: Shigeyoshi Asano, Director
Telephone: +65-6225-6938

Possible Reason for a Plunge in J Trust’s Share Price on March 8, 2017

J Trust Co., Ltd., the parent of JTRUST ASIA PTE. LTD., published a press release “Possible Reason for a Plunge in J Trust’s Share Price on March 8, 2017”. Please refer to the attachment.

March 10, 2017

Company Name: J Trust Co., Ltd.
(Listed on Second Section of the Tokyo Stock Exchange, code 8508)
Representative: Nobuyoshi Fujisawa, President & CEO
Contact: Taiji Hitachi, Director and Executive Officer
Telephone: +81(3) 4330-9100

Possible Reason for a Plunge in J Trust’s Share Price on March 8, 2017

The share price of J Trust Co., Ltd. (hereinafter, “J Trust”) plummeted on March 8, 2017. J Trust recognizes that the event was attributable to a drop in the share price of Group Lease PCL (the Kingdom of Thailand; Chairman & CEO Mitsuji Konoshita; listed on the Stock Exchange of Thailand; Ticker Code GL; hereinafter “GL”). GL’s share price tumbled, following the news reports by local media on the notes of an audit firm about GL’s financial results of the previous fiscal year. J Trust recognizes that a possible reason for the sharp decline in J Trust’s share price on March 8, 2017 is GL’s share price, which impacts the profits of J Trust in terms of unrealized gain/loss on GL’s convertible bonds held by J Trust. Meanwhile, the press release issued by Wedge Holdings CO., LTD., GL’s parent, on March 8, 2017 explained clearly that it had received an audit report stating the appropriateness of GL’s financial statements. Thus, we believe that the false coverage by some media could be the reason for the sharp decline in GL’s share price.

Please refer to the following URLs:
http://www.wedge-hd.com/en/index.html (Wedge Holdings CO., LTD)
http://www.grouplease.co.th/index.aspx?lang=en (Group Lease PCL)

GL runs Digital Finance business in seven counties mainly in the ASEAN region, including Thailand, Cambodia and Laos. Going forward, GL will expand to the markets in Africa and Eastern Europe. GL’s full-year profits as of the end of December 2016 reached record 1,060 million baht, which evidences its steady growth. Capitalizing on the growth opportunities in emerging economies in Southeast Asia, J Trust Group (hereinafter, “JTG”) aims to expand business in Indonesia and other ASEAN markets jointly with GL, its strategic partner. JTG recognizes that the decline in GL’s share prices was affected by the false media coverage. It is irrelevant to GL’s business operations, and will not impact its future. Thus, our partnership remains intact, and JTG will continue to develop business with GL by focusing on retail finance in Indonesia and other ASEAN markets.

◆Relationship with GL

JTG has created own business models in Japan for retail financing, amusement business and real estate business, all of which serve as growth drivers. It established JTRUST ASIA PTE. LTD. on October 7, 2013 to utilize the models abroad, in particular for JTG’s business development in fast-growing Southeast Asia. Meanwhile, JTG subscribed for GL’s convertible bonds on May 22, 2015 and then exercised the conversion right on December 30, 2015 to acquire 6.43% of its outstanding common shares. The investments aimed to actively support GL, which enjoys business expansion with aggressive hire-purchase financing in Thailand, using JTG’s exclusive network and expertise. This was followed by further subscription for GL’s convertible bonds worth 130 million dollars on August 1, 2016. Then, JTG offered another subscription for GL’s convertible bonds worth 50 million dollars on October 31, 2016 with an eye to stronger partnership.

◆Establishment of PT Group Lease Finance Indonesia (hereinafter, “GLFI”)

JTG established a multi finance company GLFI in alliance with GL, its strategic partner, to drive the growth of Digital Finance Platform-based leasing and consumer financing businesses in Indonesia and other ASEAN economies. GLFI, launched in July 2016, is currently profitable. Since GLFI is an equity-method affiliate of J Trust, we expect the entity to bring us proportionate profits. The business currently targets buyers of agricultural equipment in Indonesia. For the business structure, GLFI is in charge of finding customers, screening, collection, etc. and PT Bank JTrust Indonesia Tbk., a subsidiary of J Trust, grants loan. The loan balance is on a steady rise, reaching 59.1 billion rupiah as of the end of February 2017. Going forward, the agriculture-related loan is expected to grow considerably, along with the possible expansion of target products and transaction limits, and contribute greatly to the bank’s earnings.

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