NIS GROUP 
By
(Translation)
To whom it may concern
November 4, 2011
NIS Group Co., Ltd. (the "Company") hereby announces that the
Company has revised its consolidated financial forecasts for
the six months ended September 30, 2011 which remained
undetermined taking into consideration the recent situation
of the Company, as described below.
In addition, the Company recognized losses on impairment of
securities during the second quarter of the fiscal year
ending March 31, 2012 as a result of impairment of securities
whose market or actual values became substantially lower
compared to their book values, in accordance with the
"Accounting Standard for Financial Instruments" under
Japanese GAAP.
1. Adjustments in consolidated financial forecasts
Adjustments in consolidated financial forecasts for the six
months ended September 31, 2011
(Units: Millions of yen, except per share amounts)
Operating Revenues | Operating Income | Ordinary Income | Net Income | Net Income Per Share | |
Revised Figures (B) | 2,557 | (1,083) | (1,361) | (5,197) | (10.94)yen |
(Reference) For the Nine Months Ended September 30, 2010 | 3,250 | (5,504) | (5,937) | (14,602) | (47.59)yen |
2. Reason for the adjustments in the financial forecasts
With respect to operating revenues, the Company revised its
forecasts as above mainly due to a decrease in interest
income from loans receivable reflecting a decrease in the
balance of loans receivable, as well as a decrease in the
number of new projects in the investment banking and overseas
trading business.
With respect to operating income and ordinary income, the
Company revised its forecasts as above mainly due to a
decrease in selling, general and administrative expenses such
as loan loss-related costs.
With respect to net income, the Company revised its forecasts
as above mainly due to losses of ¥2,665 million on impairment
of investment securities, and losses of ¥1,171 million on
forward contracts for the securities of which the Company had
already paid in a part of purchase price.
The Company is currently negotiating with its lenders
including Resolution and Collection Corporation on issues
such as amendments to terms and conditions of the contracts,
and the effect of the future progress of the negotiation on
the consolidated financial results if uncertain. Therefore,
the Company decided to put off announcement of the
consolidated financial forecasts for the fiscal year ending
March 31, 2012, and they will be announced as soon as they
are determined.
3. Losses on impairment of securities during the second
quarter of the fiscal year ending March 31, 2012
(Units: Millions of yen)
Consolidated | Non-Consolidated | |||||||||||||||||||||||||||||
(A) Total amount of losses on impairment of securities for the three months ended September 30, 2011 (i Share
© Publicnow - 2011
NIS GROUP CO., LTD. is a Japan-based company which provides total financial services. The Total Financial Services segment is engaged in the provision of secured and unsecured loans to individuals and corporate clients, as well as the operation of credit guarantee business and real estate financing business. The Investment Bank and Overseas Trading segment is engaged in the merger and acquisition (M&A), the provision of advisory services for investment and loans, the operation of investment partnership, trade support services and overseas presence consulting business, and the sale of used-cars and trading business. The Real Estate segment is engaged in the purchase, sale and development of real estate, as well as asset management business. The Others segment is engaged in support business. On September 20, 2011, the Company completed the disposal of a Tokyo-based wholly owned subsidiary. On january 17, 2012, the Company completed the disposal of a Tokyo-based wholly owned subsidiary.
Sector
Consumer Lending
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