Wedge Holdings Co., Ltd.
November 2013
Business Presentation
26th November 2013www.wedge-hd.com
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Contents
Part 1 Consolidated Annual Financial Results- Consolidated Operating Results(P/L)- Consolidated Financial Condition(B/S)- Segment Results
Part 2 Main Topics- Rapid Increase of Loans from Business Expansion- Steady Increase in Revenue- Increased Amount of Allowance for Bad Debts Recorded
Part 3 Status Quo & Future Preparations (Measures)-Finance Business (GL, Thailand)• Preparation 1: Tighten screening process in existing dealers• Preparation 2: Partner with new dealers in new regions• Preparation 3: Development of new customers for recovered
motorcycles

2Part 3 Status Quo & Future Preparations (Measures) -continued- Finance Business (GLF, Cambodia)• Preparation 1: Initiate exclusive agreement with Honda NCX (with98% market share)• Preparation 2: Establishment of sales offices throughout Cambodia• Preparation 3: Partnership with SIAM KUBOTA for new agricultural
machine lease- Outlook of Entertainment Business• Preparation 1: Acquisition of new customers, contents and relate
closely with existing customers• Preparation 2: Maintain a “Open-Door” environment which promotes
pioneering spirits.
• Preparation 3: Advance with multi-lingual development in Asia.
Part 4 Targets and Earnings Forecast- 2014 Earnings Forecast3Consolidated Annual
Financial Results4Consolidated Operating Results(P/L)（Units：1000 yen）

Sales
Operating Profits
Recurrent Profits
Net Profits

5

Q4
Q4
September 30, 2012 September 30, 2013
3,319,524
4,875,275
842,610
791,122894,137
857,917
172,274
490,908

YoY
146.9%
93.9%
95.9%
285.0%

Consolidated Financial Condition(B/S)（Units：1000 yen）

Consolidated Balance Sheet
Current assets
Fixed assetInvestments and otherassets (inclusive)
Total assets
Current liabilities
Fixed liabilities
Total liabilities
Total shareholders' equity
Total net assets

Current ratio
Fixed ratio
Shareholders' equity ratio
D / E Ratio

6

Fiscal Year Ending
September 30, 2012
7,537,356
2,919,440

Fiscal Year Ending
September 30, 201315,330,482
3,865,298

2,217,052

2,750,090

124.0%

10,456,797
2,417,769
1,535,781
3,953,551
4,734,041
6,503,246

19,195,780
5,379,742
4,079,936
9,458,578
5,259,714
9,739,202

183.6%
222.5%
265.7%
239.2%
111.1%
149.8%

311.7%
61.7%
45.3%
74.2%

285.0%
73.5%
27.4%
170.4%

Year-on-year
203.4%
132.4%

Segment Results（Units：1000 yen）

Segment Reoprt

Q4 Fiscal 2012

Q4 Fiscal 2013

2,210,390
862,087
695,495
249,027
3,319,524
842,610

4,113,405
979,567
582,972
108,961
4,875,275
791,122

Sales
Segment Profits
Sales
Entertainment Business
Segment Profits
Sales
Total
Segment Profits
Finance BusinessYear-onyear
186.09%113.63%83.82%
43.75%
146.87%93.89%※Merchandising business has been transferred in Q2 and therefore is excluded from consolidation

Equity method investment earnings (prior to amortization of goodwill) of Zeavola Resort
greatly increased compared to last year

2012 Q472013 Q4

YoYSales

414,983

628,705151.5%

Equity Method
Investment Earnings

59,742

69,937117.1%

Main Topics

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Rapid Loan Increment fromBusiness Expansion
 Approximately 68% annual growth in total loans (portfolio) ofFinance BusinessEnd of Fiscal 2013
End of Fiscal 2012
2,672 Million Baht

4,486 Million Baht
(approx. 13.9 billion yen)(approx. 8.3 billionyen)

9※30th Sept 2013 Yendenominated exchange rate.
For convenience, calculation isof 3.11 yen per Baht

Steady Increase in Revenue
 Increasing trend in revenue of Finance Business
continues together with the expansion of portfolio

Group Lease PCL.売上高の四半期推移

Quarterly Revenue Transition of Group Lease PCL
450,000

Revenue

400,000
350,000
300,000
250,000
200,000
150,000
100,000
50,000
09Q1 09Q2 09Q3 09Q4 10Q1 10Q2 10Q3 10Q4 11Q1 11Q2 11Q3 11Q4 12Q1 12Q2 12Q3 12Q4 13Q1 13Q2 13Q310

Increased Amount of Allowancefor Bad Debts RecordedMain reason for the increase in allowance for bad debt
• Continuous expansion of portfolio from the previous year
• Low level from temporarily allowance increase due to flood• Conservative shift of allowance for bad debt level during the endof 2012.
Thousand Baht

GL: Transitionof Allowance for Bad Debts
GL 貸倒引当金推移

120,000
100,000
80,00060,00040,00020,0001109Q1 09Q2 09Q3 09Q4 10Q1 10Q2 10Q3 10Q4 11Q1 11Q2 11Q3 11Q4 12Q1 12Q2 12Q3 12Q4 13Q1 13Q2 13Q3

Status Quo &Future Preparations(Measures)

12Finance Business (GL, Thailand) 3 preparations which have been
implemented in GL
1. Tighten screening process in existing
dealers.
2. Partner with new dealers in new regions.
3. Development of new customers forrecovered motorcycles

13Finance Business (GL, Thailand) Preparation 1: Tighten screening process in existing
dealers.
Although the latest number of new contracts are decreasing, thismeasure corresponds to the economic slowdowns in Thailand to
improve the quality of receivables, decrease bad debts andincrease future profits.
9,000

Transition of New Contract Numbers
8,000

7,000

6,000

5,000

4,000

3,000

2,000
2011
2012

1,000

2013
014JanFebMarAprMayJunJulAug

SepOctNovDecFinance Business (GL, Thailand) Preparation 2: Build partnerships with new dealersin new regions: From Area Dominant to RegionalExpansion
 2011-1st half of 2013 Aggressive portfolio expansion from areal business
reinforcements• Main Objective: Areal expansion of new dealers,
Increase of total new contracts from expansion oftransaction shares.
 2nd half of 2013～ Maximize profits from expansion in new business areas
and reinforcing quality of receivables in existing regions.
• Main Objective: Dealer expansions in new areas Credit management
and recovery strength for improvement in trusted
customer ratio
Motorcycle Dealers
Reinforce
QualityReinforce
Quality
ExpandShares
ExpandSharesof Receivables Reinforce Quality of Receivables
Expand Sharesof Receivables

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Capital Areas &EasternIndustrial
Areas

New Business Areas

ASEAN Integration & Asia Highway
 North-South Economic Corridor(NSEC, AH2)
China(Kunming)-Thailand-Singapore

 East-West Economic Corridor(EWEC, AH123)
 Vietnam(Da Nang)-Thailand-India

 Second East-West EconomicCorridor (AH1)
 Mekong Delta Economic Corridor Bangkok-Phnom Penh-Ho Chi Minh16

Finance Business (GL, Thailand) Preparation 2: Partner with new dealers in
new regions: From Area Dominant toRegional Expansion
With the economic slowdown inThailand, dealers are welcoming
the partnerships with GL and newsales offices are being established.
Although establishments of newsales offices will temporarily lower
profits, but it is expected tocontribute greatly after one year.
Provinces with GL HQ and branches
Provinces of operating regions withbusiness partners
Provinces with branches establishedin August
Upcoming regions
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Province without GL branches

Finance Business (GL, Thailand) Preparation 3: Development of new customers forrecovered motorcycles
Maintain the strong “High resale value and liquidity ofcollaterals” business model of GL in the future where numbersof new contract further increases.

High Profit Level

High Sales

Low Cost

Relatively high interest

High recovery rates• Feature of micro finance1818• High collateral value andliquidity• Registration system andownership

Finance Business (GLF, Cambodia)
3 preparations which have been
implemented in GLF
1. Initiate lease business by entering into an
exclusive agreement with Honda NCX whichholds 98% market share in Cambodia.
2. Complete establishments of sales offices
throughout Phnom Penh and expand
establishments throughout Cambodia.
3. Partnership with SIAM KUBOTA to initiate new
agricultural machine lease.

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Farming Villages in Cambodia

20Mechanization will take place inthe near future21

Finance Business (GLF, Cambodia)
 Preparation 1: Initiate lease business byentering into an exclusive agreement withHonda NCX which holds 98% market share inCambodia.
End of June 2013 Consolidation• Improve product lineups and related services• Continue expansion of business network
2013 Q4 (Oct-Dec)Contribution to Monthly Earnings• Advance with regional expansion to set up sales offices
in all dealers in Cambodia.
Expand to a business scale comparable to Thailand in2012 by 2015
• Accumulation of portfolio with increment of both revenueand profits.
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Finance Business (GLF, Cambodia)
 Preparation 2: Complete establishments of sales offices
throughout Phnom Penh and expand establishments
throughout Cambodia.

23Currently Established Sales Offices24

Finance Business (GLF, Cambodia)
Monthly transition of new contract numbers
Transition of New
Contract Numbers in Cambodia
カンボジア新規契約者数推移
600
2012
500

2013

400

300

200

1000
Jan

25FebMarAprMayJunJulAug

SepOctNovDec

Finance Business (GLF, Cambodia)
 Preparation 3: Partnership with SIAM KUBOTA toinitiate new agricultural machine lease.

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Entertainment Business Upward battle continues due to the withdrawal ofexisting customers from the Publishing Businessthis quarter.
3 preparations which have been implemented in theEntertainment Business
1. Make good use of our game development andediting skills to acquire new customers, contentsand relate closely with existing customers.
2. Maintain a “Open-Door” environment which
promotes pioneering spirits.
3. Advance with multi-lingual development in Asia.

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Targets and Earning Forecast

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Fiscal 2014 Earnings Forecast
 Forecasted increase in earnings and profits
for revenue and operating profits

Sales
Operating Profits
Recurrent Profits
Net Profits

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Fiscal 2012 results

Fiscal 2013 results

Earnings Forecast
Fiscal 2014

3,319
842
894
172

4,875
791
857
490

6,200
1,200
1,200250

 Expected increase in earnings for Finance Business fromincrease of accumulative contracts.
 Although fixed costs are expected to increase continuously,decrease in bad debt is anticipated from strict screening
processes for new contracts.
 Current net profits is expected to decrease with theassumption that the special income of 374 million yen thisterm will not occur in the next term.

Thank you!
Contact details for IR-related inquiries
Wedge Holdings CO., LTD. Management
Administration Department
TEL: 03-6225-2161 / FAX: 03-3548-0566
wedge-ir@wedge-hd.com
http://www.wedge-hd.com*Materials stated include statements concerning the future, but these statements are guaranteedfuture results. Furthermore, contents of these materials has not been audited and neither its accuracy
nor certainty is guaranteed.
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