During this consolidated fiscal year, there was vague sense of economic recovery. Improvements were seen in corporate profits and production level improved due to increase in exports and governmental policy. However, the unemployment rate still remained at a high level and salary is in decreasing trend.

The situation in the consumer finance industry also remains severe. Not only is our business taking a direct hit from the number of requests for interest repayment, which remains at a high level, but also the revisions made in the Money Lending Business Act have shrunk the consumer credit market and reduced our profitability.

Against this background, ACOM Group concentrated on a consolidated issue on "Securing customers of loan business and our earnings base," "Taking precise measures in response to the revised Money Lending Business Act," "Reforming our cost structure" and "Promoting our business alliance with the MUFG Group." With these key objectives, ACOM worked to restructure internal organization and strengthen business foundation for next growth.

In this consolidated fiscal year, ACOM worked on "Strengthening Business Management Policy" released on November 5, 2009. Specifics measures consist of reorganization of business outlets and recruitment of voluntary retirements.

With regard to the business alliance with MUFG Group, DC Cash One Ltd. ("Cash One") transferred its guarantee business to Mitsubishi UFJ NICOS Co., Ltd. Cash One later became a wholly owned subsidiary of ACOM as of April 1, 2009, and was merged into ACOM as of May 1, 2009. RELATES CO., LTD. was merged into MU Communications Co., Ltd. ("MUCC") as of April 1, 2009, and MUCC became an equity-method affiliate of ACOM on the same day. In September 2009, the Company succeeded unsecured card loan guarantee business of The Mitsubishi UFJ Home Loan Credit Co., Ltd. ("MULC")

We are determined to proceed with business alliance with the MUFG Group centering on a reorganization of guarantee business within the MUFG Group.

The business results for this consolidated fiscal year decreased by 45,600 million yen, to 278,795 million yen (down 14.1% year-on-year) in operating revenue compared to prior consolidated fiscal year, due primarily to a decline in interest on operating loans. Although provision of allowance for doubtful account and provision for loss on interest repayment increased by 1,755 million yen and 6,204 million yen, respectively, and general and administrative expenses decreased 22,580 million yen. Operating expenses, therefore, decreased by 20,934 million yen to 272,732 million yen (down 7.1% year-on-year). As a result, operating income decreased by 24,666 million yen, to 6,063 million yen (down 80.3% year-on-year), and ordinary income decreased by 24,731 million yen, to 7,917 million yen (down 75.7% year-on-year). In extraordinary income, gain on sales of subsidiaries and affiliates' stocks decreased by 1,714 million yen, and gain on transfer from business divestitures increased by 1,323 million yen. In extraordinary loss, loss on sales of stocks of subsidiaries and affiliates decreased by 5,799 million yen, but 10,167 million yen of business structure improvement expenses was booked, and income taxes-deferred decreased by 4,714 million yen. Therefore, net income was a decrease of 20,901 million yen, and 7,239 million yen of net loss was booked.

In the loan business, we have focused on extensive preparations to ensure a smooth response to the full-scale enforcement of the Money Lending Business Act, concurrently with an emphasis on the reform of our sales business models to reinforce sales service capabilities, increase new customers, and maintain and further improve the loan portfolio. Also, as part of the strengthening of our management structure, we have combined our four concentrated operating centers into two, and reorganized the staffed and unstaffed outlets to realize an efficient outlet network and substantially improve productivity.

EASY BUY Public Company Limited, engaged in the loan business in the Kingdom of Thailand, has sought to expand new loan applications by opening up a number of booths dedicated solely to accepting new loan applications and to proactively undertake other sales activities, thereby increasing loans receivable by 7.4% in the local currency (Thai baht).

During the consolidated fiscal year under review, accounts receivable-operating loans declined by 142,621 million yen to stand at 1,173,545 million yen (down 10.8% year-on-year), while interest on operating loans was 231,839 million yen (down 14.0% year-on-year). These declines resulted mainly from a drop in accounts receivable-operating loans as large number of borrowers requested for interest repayments, lower returns due to falling lending interest rates, and the impact of exchange rate fluctuations.

In the credit card business, we tightened procedures for issuing credit cards to our loan customers in an effort to maintain and improve the soundness of a portfolio, and encouraged customers to switch to the Company's credit card when their tie-up cards expired. As a result, the number of cardholders at the consolidated fiscal year decreased by 208 thousand compared from prior consolidated fiscal year, to 374 thousand, and the transaction volume decreased to 11,972 million yen (down 28.9% year-on-year).

AFRESH CREDIT CO., LTD., whose principal business is installment sales finance, has given priority to responding aptly to revisions in the Installment Sales Act, maintaining the scale of its operations and improving profitability, and buttressing its management of member locations. The transaction volume and accounts receivable-installment by the said company were respectively 23,321 million yen (down 7.9% year-on-year) and 30,219 million yen (down 7.5% year-on-year).

As a result, the total of accounts receivable-installment in the credit card business and installment sales finance business decreased by 9,622 million yen, to 58,404 million yen (down 14.1% year-on-year), during this fiscal year. Credit card revenue and per-item revenue were respectively 3,547 million yen (down 17.7% year-on-year) and 3,485 million yen (down 13.3% year-on-year).

The Company's guarantee business has endeavored in particular to expand the scale of its operations and operating revenue and improve its earnings structure. Sales support has been provided to existing business partners and steps taken to find new business partners, and in July 2009 its business promotion structure was reorganized to enhance operational and personnel efficiency and extend loan collection capabilities. During this fiscal year under review, the company succeeded unsecured card loan guarantee business of MULC in September, 2009. In January, 2010, the Company commenced guarantee business for "Loan Service," personal loan service, provided by Seven Bank, Ltd. Moreover, the company worked on increasing guaranteed receivables through aiding promotion of loan products of existing partners with BANQUICK provided by The Bank of Tokyo- Mitsubishi UFJ, Ltd. (BTMU) as the core.

As a result, the number of our partners for the guarantee business reached 17 banks in this consolidated fiscal year. The amount of guaranteed receivables increased by 172,888 million yen from the end of prior consolidated fiscal year, to 317,240 million yen (up 119.8% year-on-year), while revenue from credit guarantee was 12,419 million yen (up 62.6% year-on-year) and revenue from guarantee business, including commissions for credit guarantee, was 14,295 million yen (up 22.9% year-on-year).

IR Loan Servicing, Inc., under a policy of "Strengthening its profitability" and "Strengthening of servicing capability," worked to share know-how and skills relating to the servicing of small claims with the Company, and to improve its system for servicing such claims. It also worked to reduce its holdings of purchased claims secured by real estate and to strengthen the management of its operating-asset portfolio.

In this consolidated fiscal year, the amount of consolidated collection from purchased receivables was 12,273 million yen (down 22.1% year-on-year) while the revenue from loan servicing business including the commissions was 12,844 million yen (down 21.9% year-on-year).