Centrade

Advantages

• ✓Registered moneylender under the Moneylending Business Law in Japan since 1984, showing regulatory compliance and operational stability.
• ✓Diversified financial services focusing on integrated financial services to SMEs and real estate financing with growing secured loan portfolio.
• ✓Strategic shift to secured loans to property companies, with secured loans comprising 51.6% of the total loans outstanding as of March 31, 2007.
• ✓Low charge-off ratio of 0.02% for secured real estate loans in the fiscal year ended March 31, 2007, indicating effective risk management.
• ✓Provision of credit guarantees and leasing and securities businesses alongside lending, supporting diversified revenue streams.
• ✓Expansion into real estate business and servicing business segments contributing to increasing revenue growth.
• ✓Subsidiaries include Nissin Servicer and NIS Securities, providing loan servicing and investment banking capabilities.
• ✓Debt financing mix includes substantial long-term borrowings at relatively low rates (weighted average ~1.9%) and strategic issuance of bonds and commercial paper.
• ✓Implemented reserve and provision for losses on excess interest repayments according to regulatory changes and Supreme Court rulings, showing proactive risk provision.
• ✓Operational efficiency maintained by reliance on telephone, loan office, and internet channels, avoiding costly physical infrastructure.
• ✓Comprehensive risk management practices including provisioning for loan losses based on historical data and economic conditions.
• ✓Stable shareholder structure with major family shareholders providing control without significant conflicts reported.
• ✓Effective internal control over financial reporting with audit opinion confirming adequacy.