1. © 2003 IRCJ ． All rights Reserved IRCJ Industrial Revitalization Corporation of Japan November.10th,2003 Professor Dr. Shinjiro Takagi Chairman Industrial Revitalization Commission

2. © 2003 IRCJ ． All rights Reserved 1. Introduction Bubble bust of land prices in Japan Non or poor performing loans (NPLs) Jan,1995 Resolution and Collection Bank (RCB) July,1996 Housing Loan Administration Corporation (HLAC) April,1999 Resolution and Collection Corporation (RCC) April.2003 Industrial Revitalization Corporation of Japan (IRCJ) IRCJ

3. © 2003 IRCJ ． All rights Reserved Non-Main Banks IRCJIRCJ Entry Exit Indebted Company Main Bank Non-Main Banks Restructuring Plan Revived Company Loan Assets Purchase Sale DES Evaluation Banks New Money Private Equity Fund Investment Banks Strategic Sponsors 2 ． Process of IRCJ IRCJ Non-Main Banks Banks

4. © 2003 IRCJ ． All rights Reserved 3. Feature of IRCJ IRCJ  The ministers in charge supervise the operation of IRCJ, executives and members of the board of directors and IRCJ Commission are under approval of the ministers.  IRCJ can raise money as much as 10trillion Japanese Yen with government guarantee.  IRCJ must exit within three years after purchasing the loans.  Total lifetime of IRCJ is limited to five years.

5. © 2003 IRCJ ． All rights Reserved 4. O rganizational Structure IRCJ Compliance Industrial Revitalization Committee Board of Directors Administration Office Supporting Office (Middle) Professional Office (Front-Line) President & CEO Auditors COO General meeting of shareholders

6. © 2003 IRCJ ． All rights Reserved IRCJ 5. Cases ◆ IRCJ decided to assist eight debtor corporation groups ー Kyushu Sangyo Koutsu (Transportation Company) ー DIA Kensetsu (Condominium developer) ー Mitsui Mining ー Usui Department Store ー Meisei Trading (for chemicals) ー Matsuya Denki (Appliance retail store chain) ー Tsumatsubishi Department Store ー Yagami Trading (for medical supplies) ◆ 50 Candidate Companies

7. © 2003 IRCJ ． All rights Reserved 6. Points IRCJ  Attitude of Mega Banks  IRCJ’s valuation of collateral  DCF method  DES  No compulsory power  Close Corporation with Bank of Japan and Financial Services Agency

8. © 2003 IRCJ ． All rights Reserved IRCJ Industrial Revitalization Corporation of Japan Inquiries : Corporate Planning Office +81-3-6212-6400 (Switchboard) Home Page: www.ircj.co.jp www.ircj.co.jp