|Accounts receivable-installment||The funds or the balance of funds that has not been received from a consumer after the credit company has paid charge to the merchant on behalf of the consumer when he or she uses a credit card or installment sales contract (deferred payment or installment payment).|
|Accounts receivable-operating loans||The funds loaned to customers and the balance of such loans.|
|ACOM CONSUMER FINANCE CORPORATION||A subsidiary which is in loan business in Philippines.|
|Allowance for doubtful accounts||An estimated amount of potential losses that a company might experience due to bad (or uncollectible) debt.|
|Automatic contract machine||A loan contract machine providing non-face-to-face agreement. The same screening process as in a staffed outlet is offered through the monitor. This system is centrally managed by our "Real Service Center" and is remotely operated using IT to perform the same screening and services as in a staffed outlet.|
|Card issuance machine(s)||A machine that issues Master Card. It is installed in unstaffed outlets nationwide, and cards are issued as soon as possible after application.|
|Cash-out||An outflow of funds. In ACOM, the outflow of funds, especially due to interest repayment claims, is called cash-out.|
|Consumer finance||Money lenders which provide loans in small amounts to individuals.|
|Credit extension for purchase on credit||A mechanism where a credit card company makes a payment to a merchant on behalf of a consumer who buys on credit and the consumer then makes a deferred or installment payment to the credit card company. Credit is extended individually for each purchase or comprehensively with the use of a credit card.|
|CS||Abbreviation for Customer Satisfaction.
Please see below for main activities on enhancement of CS.
|Deferred tax assets||One of the account titles used in tax effect accounting. The company pays taxes in advance on the portion of the expense that is recorded as an expense by the corporate entity but not recognized as a loss by the tax entity. This prepayment is assumed to be returned in the future and is recorded on the balance sheet as "deferred tax assets" under certain conditions.|
|EASY BUY Public Company Limited||A subsidiary which is in loan and installment business in Thailand.|
|ES||Abbreviation for Employee Satisfaction.
Please see below for major activities for enhancement of ES.
|Financial expenses||Expenses for borrowings, including interest expenses, interest on bonds, etc.|
|Guarantee business||The business which provides credit guarantees to customers using loan products provided by financial institutions in alliance. ACOM Group, ACOM and its consolidated subsidiary, MU Credit Guarantee conducts Guarantee business.|
|IR Loan Servicing, Inc.||A subsidiary which is in loan servicing business.|
|Loan and credit card business||Business providing unsecured loans in small amounts to individuals based on security of customers' "credits." In July 1998, ACOM obtained an issuing license of Mastercard® and achieved full-scale advancement into the credit card business.|
|Loan servicing business||The business which manages and collects the purchased or entrusted receivables from financial institutions.
Its primary revenue sources are debt collection profit and fees on entrusted business.
|Loss on interest repayment||In case our customers, who entered into contracts before June 17, 2007, with the interest exceeding the interest ceilings specified in the Interest Rate Restriction Act, request a reduction in reimbursement of excess interest paid, the Company may accept to write off such loan and reimburse payments. We refer to those costs of write-off and reimbursing repayments as loss on interest repayment.|
|Mediated claim||Claim for which a lawyer or a judicial scrivener represents a debtor.|
|Money lenders||A person who lends money as a business.|
|Money Lending Business Act||A law governing money lenders who make loans for a customer or a worker as well as borrowings from money lenders. For the purpose of addressing issues related to multiple debtors, the existing law was drastically revised in December 2006, and after being enforced in stages, it came into full effect in June 2010, with the framework of optimizing the money lending business, curbing excessive lending, and optimizing the interest rate system.|
|MU Credit Guarantee Co., LTD.||A subsidiary which is in guarantee business.|
|Other operating expenses||Operating expenses other than financial expenses and provision for bad debt. The main components are personnel expenses, computer expenses and advertising expenses.|
|Overseas financial business||The Group has launched financial businesses in the Kingdom of Thailand and the Republic of the Philippines using expertise garnered from loan business in Japan.|
|Providing credit||To set a limit of loan or credit card by judging credit capability.|
|Provision for Bad debt||The overall expenses related to bad debts. The main contents are "bad debt expenses" that occurs when the collection of receivables becomes impossible, and "provision for doubtful accounts" that occurs when the allowance for doubtful accounts is increased according to the status of receivables. When the allowance for doubtful accounts decreases, the provision for doubtful accounts leads to a negative expense (equal to profit).|
|Provision for loss on interest repayment||An estimated amount of potential losses that a company might experience due to loss on interest repayment.|
|Purchased receivables||A loan that IR Loan servicing, Inc bought from financial institution in its loan servicing business.|
|Regulation on total borrowing amount||This regulation sets ceiling on the maximum amount one can borrow to 1/3 of annual income for consumer protection.
It is applicable to loans from money lenders.
|Revolving system||A method which can be used repeatedly up to the specified limit and repaid in monthly (or regularly) proportional installments.|
|Right to reimbursement||Generally, it is the right of a person who has repaid another person's debt instead to claim the amount of the repayment from the original debtor. In the guarantee business, when a customer of a partner financial institution becomes unable to repay the debt, and the guarantee company, ACOM or MU Credit Guarantee makes a subrogated payment (repays the partner financial institution on behalf of the customer), the company obtains right to reimbursement.|
|ROA||Abbreviation for Return on Assets, calculated by dividing net income by total assets. It is one of indicators showing profitability and management efficiency of a corporation by utilizing its assets.|
|ROE||Abbreviation for Return on Equity, calculated by dividing net income by shareholders' equity. It is one of indicators showing profitability and management efficiency of a corporation in relation to shareholders' equity.|
|Shareholders' equity ratio||A figure calculated by dividing the shareholders' equity by total assets. The higher the equity ratio, the higher the rate of funds without obligation to repay increases. It is one of the indicators of a company's financial stability.|
|Unsecured loan||A loan which is supported by the customers' creditworthiness, including will and ability for repayment, and does not require the borrower offering any collateral such as property or other assets.|
|5s||Characteristics of loan and credit card business can be represented by following 5S's: 1.Speediness; 2. Simplicity; 3. Secrecy; 4. Safety; and 5. Self Service.|