Release of On-line Loan Application Service which utilizes

Release of “On-line Loan Application Service” which utilizes XBRL and e-TAX May 17, 2006 Shin. Ginko Tokyo, Limited Presidential Assistant 　 Mike Tanji

Contents Ⅰ．Summary Ⅱ．What is Shin. Ginko Tokyo? 1. 2. 3. 4. 5. Company Outline Tentative Financial Data Background of Establishment Main Loan Product Customer Needs Ⅲ． On-line Loan Application Service 　　 1. Basic Concept 　　　2. 　　　3. 　　　4. 　　　5． 　　　6. Scheme Outline Reason for Adopting XBRL （Data：What is ｅ-TAX? ） Reaction from the Market （Status of Inquiries） Business Potential Future Development Copyright　2006　©　Ｓhin. Ginko Ｔokyo, Limited　All　Rights　Reserved 2

Ⅰ．Summary Shin. Ginko Tokyo, Limited and Hitachi, Ltd. jointly developed an On-line Loan Application System. Utilizing e-TAX, national-tax filing system in Japan, and XBRL, the system is aimed at the online processing of financial information documents and loan application forms. This “On-line Loan Application Service” for commercial use was launched as of April 2006. The topics to be covered in this seminar will include what lies behind the development of On-line Loan Application Service, reasons for adopting XBRL and e-TAX, the new coming products and further development of this new service. Copyright　2006　©　Ｓhin. Ginko Ｔokyo, Limited　All　Rights　Reserved 3

Ⅱ．What is Shin. Ginko Tokyo? 　　１．Company Outline As of September 30, 2005 n Company Name 　　 Shin. Ginko Tokyo, Limited n Date of Establishment 　　　April 1, 2004 n Commencement of Operation April 1, 2005 n President & CEO Yasumasa Nishi n Location of Head Office Ote Center Building 13 F 1 -1 -3 , Otemachi, Chiyoda-ku, Tokyo 100 -0004 Japan n Paid in Capital 　 n Number of Employees ６０. ３ billion Japanese Yen　　 n Domestic Branches 　　　　　 6 ２５０　（Excluding of temporaries) Copyright　2006　©　Ｓhin. Ginko Ｔokyo, Limited　All　Rights　Reserved 4

Ⅱ． What is Shin. Ginko Tokyo? 　　2．Tentative Financial Data As of March 31, 2006 Item Results Credit Total Balance of Outstanding Loans and Guarantees, etc. JPY 269, 500 Million Deposits Number of Deposit Accounts 49, 000 Accounts Deposit Balance JPY 320, 100 Million 　 　 Copyright　2006　©　Ｓhin. Ginko Ｔokyo, Limited　All　Rights　Reserved 5

Ⅱ． What is Shin. Ginko Tokyo? 　　3 -１. 　Background of Establishment　 Business Environment for SMEs Sustaining Tokyo's Economy Due to the Prolonged Recession, the Number of Bankruptcy Cases in Tokyo Reached a Peak in 2002 (3, 747 Cases). *１ Lack of Financial Intermediary Functions (Credit Crunch and Withdrawal of Loans from SMEs) Delayed Provision of New Financial Products n (*3) 40% (*4) of SMEs in Tokyo answered, "The bottom line of the current fiscal year is negative. " (60% n (*2) (60% n 40% (*5) of retailers had the same response. ) of SMEs in Tokyo answered, "We have cash flow problems. “ of retailers had the same response. ) Loan funding for SMEs is on a declining trend year by year. The total balance of the SME loans by the banks in Tokyo decreased by JPY 14 trillion over the two fiscal years ended March 31, 2003. *1: Bankruptcy Cases in 2005: Approximately 2, 300 Cases (Estimated) *2: 40. 9％ *3: 55. 5％ *4: 36. 7％ *5: 57. 9％ Source: “Capital Investment and Cash Flow Conditions of SMEs in Tokyo” (Bureau of Industrial and Labor Affairs, Tokyo Metropolitan Government), “Bankruptcy Cases in Tokyo 2002” (Bureau of Industrial and Labor Affairs, Tokyo Metropolitan Government) Copyright　2006　©　Ｓhin. Ginko Ｔokyo, Limited　All　Rights　Reserved 6

Ⅱ． What is Shin. Ginko Tokyo? 　　3 -2. 　Background of Establishment （Environment for SMEs) Interest Rate Zone for Absent Lenders High 29. 2%* Non-bank’s Small Business Owner Loans, etc. 15. 0%** CP and Corporate Bonds Bank Lending, etc. Low Risk High Source: Created by Ministry of Economy, Trade and Industry 　（Note） **　Maximum Interest Rate by the Interest Rate Restriction Law of Japan　　* Maximum Interest Rate by the Investment Law of Japan Copyright　2006　©　Ｓhin. Ginko Ｔokyo, Limited　All　Rights　Reserved 7

Ⅱ． What is Shin. Ginko Tokyo? 　　4．Main Loan Product　　 Business Loan “Portfolio” Merits Features Loan up to JPY 50 Million with a Maximum of Five-year Tenor No Collateral and No Third-party Guarantor Required In Principle, Application Is Examined within 3 Business Days Lending Period Maximum of 5 Years Interest Rate From 2%: Interest Rate Depending on Financial Conditions of SME Amount of Loan Maximum of JPY 50 Million Collateral Warranty In Principle, No Collateral and No Third-party Guarantor Required ・In Principle, New Applications Are Examined in as Few as Other 　3 Business Days ・Repayment in Installments Loan Application Tax Return Form and Statement of Accounts Identification Document (Passport, etc. ) Contract and Estimate Sheet, etc. Certified Copy of Commercial Registration Tax Certificate Required Documents • Considering the SME’s cash balance, the examination period is shorten and funds can be provided promptly. • Efficiency by diversifying application channels • Efficiency by the automated examination • Streamlining of the transaction process by centralizing data processing • Adjustment and refining of the scoring model by combining examination results and actual bankruptcy cases Bank Checkbook for the Business Account Statement of Accounts (After Provision of Funds) Copyright　2006　©　Ｓhin. Ginko Ｔokyo, Limited　All　Rights　Reserved 8

Ⅱ． What is Shin. Ginko Tokyo? 　　5. 　Customer Needs　　 Customer Needs Top Three Reasons Why Customers Chose Us (Identified by Customer Survey)　 ■ Borrowing without collateral is possible. ■ No third-party guarantor is required. ■ Examination period is short. W e ta ke on risks a nd strea m line the process to provide funds and contribute to the revival and activation of SMEs. Shin. Ginko Tokyo’s Tasks to Meet Customer Needs Customer Creed We respond to our customers, even if we can not provide loan to them, by counseling them from the customer’s perspective as well as by providing information. We reengineer our process flows from the customer’s perspective and streamline our handling of loan applications. We aim to develop the products and services that respond to long-term, stable transactions and consultation needs. Key Words Always New Speed and Alliance Customer -oriented Copyright　2006　©　Ｓhin. Ginko Ｔokyo, Limited　All　Rights　Reserved 9

Ⅲ． On-line Loan Application Service 　　1. 　Basic Concept　　 Reasons for Converting Loan Application Documents into Digital Data 1. Customer Benefit 　 ■ As the loan application process does not require on-site visit, the process becomes simple and easy. ■ Standardized digital data format allows streamlining of customers' accounting work. 2. Social Implications 　Our loan application service facilitates electronic tax filing (e-TAX) and helps streamline government tax collecting processes. Copyright　2006　©　Ｓhin. Ginko Ｔokyo, Limited　All　Rights　Reserved 10

Ⅲ． On-line Loan Application Service 　　2 -1. Scheme Outline （Loan Processing System）　　 Company Shin. Ginko Tokyo Accounting Firm Download E-Mail SOAP(SSL) Submission Program XBRL Loan Data XBRL Financial Data Attach XBRL Loan Data XBRL Financial Data Download National Tax Agency Copyright　2006　©　Ｓhin. Ginko Ｔokyo, Limited　All　Rights　Reserved 11

Ⅲ． On-line Loan Application Service 　　2 -2. Scheme Outline (Loan Application Form)　　 Copyright　2006　©　Ｓhin. Ginko Ｔokyo, Limited　All　Rights　Reserved 12

Ⅲ． On-line Loan Application Service 　　2 -3. . Scheme Outline （Loan Application Form）　　 Copyright　2006　©　Ｓhin. Ginko Ｔokyo, Limited　All　Rights　Reserved 13

Ⅲ． On-line Loan Application Service 　　2 -4. . Scheme Outline （Loan Processing System）　　 On-line Loan Application System – List of Application Date (YYMMDD): Applicant Acct Firm Applicant Receipt No. Reception Time Accounting Firm Type Phone Number ID Phone Number Condition: No condition Search Note. Attached Document Status Balance Sheet Application No. Copyright　2006　©　Ｓhin. Ginko Ｔokyo, Limited　All　Rights　Reserved 14

Ⅲ． On-line Loan Application Service 　　2 -5. Scheme Outline （Security）　　 Company Application Form Accounting Firm Submission Program Sheet Protection File Password User ID/Password SSL 128 XBRL Loan Data XBRL Financial Report XML Tax Certificate XBRL Financial XML Report Company’s Signature Shin. Ginko Tokyo Tax Certificate NTA’s Signature Verification National Tax Agency Copyright　2006　©　Ｓhin. Ginko Ｔokyo, Limited　All　Rights　Reserved 15

Ⅲ． On-line Loan Application Service 　　3. Reason for Adopting XBRL Proprietary Digital Data Format Developed by an Individual Accounting Software Vendor and an Individual Bank Future Trends Supply-chained Financial Information XBRL => Global Standard U. S. A. No Spread Potential for Electronically Processed Loan and No Growth for Overall Market Germany Japan XBRL has already been adopted as the global standard for financial information format. ■ Financial Services Agency of Japan: EDINET ■ Bank of Japan ■ Tokyo Stock Exchange, Inc. : TDnet ■ National Tax Agency of Japan: e-TAX Copyright　2006　©　Ｓhin. Ginko Ｔokyo, Limited　All　Rights　Reserved 16

Ⅲ． On-line Loan Application Service 　　 Data ：　What is e-TAX? Income Tax Return e-TAX　？ Electronic Handling of Various Procedures Related to National Taxes through the Internet Corporate Tax Consumption Tax Liquor Tax, Documentary Stamp Tax 295, 812 Tax Office e-TAX Filing Reception System Growth of the Number of e-TAX Use Cases Other Tax Payment Application Filing Application for Tax Return Notification of Change of Tax Payment Location 87, 562 Application for Tax Certificate Financial Institution Tax Payment Net Bank Mobile Bank Deposit Account Treasury Fund Account Tax Return 3, 073 2004 2005 Source: Website of National Tax Agency of Japan Copyright　2006　©　Ｓhin. Ginko Ｔokyo, Limited　All　Rights　Reserved 17

Ⅲ． On-line Loan Application Service 　　4. Reaction from the Market Customer Needs for Transactions Using the Internet (Our Customer Survey) Transactions are easily processed via the Internet (Remittance and Balance Inquiry) Loans applications can be submitted via the Internet. ■High Expectations ■Low Expectations ■Unclear 17. 1%　 50. 9% 25. 4% 6. 6% ■High Expectations ■Low Expectations ■Unclear 17. 0%　 38. 2% 38. 8% 6. 0% More than 50 percent of Respondents Favor On-line Transactions Reaction of the Market after the Press Release of On-line Loan Application Service Corporate Client 20％ System House 5% Finance 40％ Accountant/Tax Accountant　 35％ Who made inquires after the press release of the service? Main Topics ■ Business Scheme ■ Linkage between the Loan Application Data and the Application Examination Systems ■ Actual Application Procedure The World's First System to Practically Adopt XBRL Format is Drawing Great Attention Copyright　2006　©　Ｓhin. Ginko Ｔokyo, Limited　All　Rights　Reserved 18

Ⅲ． On-line Loan Application Service 　　5. Business Potential 1. Expansion of Electronic Lending Environment by Using XBRL and e-TAX Shin. Ginko Tokyo, Limited and Hitachi, Ltd. will aggressively spread the use of XBRL and e-TAX, facilitate the digitization of documents in client companies and help streamline accounting and tax accounting processes in the companies. 2. Provision of New Products Meeting Needs for Facilitation and Diversification of Fund Raising Shin. Ginko Tokyo will expand the electronic lending system, make use of the newly legislated registration systems for collateralized receivables and properties, and provide new products that meet diversified needs. Copyright　2006　©　Ｓhin. Ginko Ｔokyo, Limited　All　Rights　Reserved 19

Ⅲ． On-line Loan Application Service 　　6. Future Development Second Phase 1. Interaction with Main Systems: Streamlining of Transaction Processes by Interacting with the Main Systems covering marketing and accounting information ■ Streamlining Loan processing procedures by interacting with the Automated Examination System ■ Facilitation of Electronic Application from Existing Loan Clients 2. Expansion to Handling of New Electronic Lending Products ■ Increased Convenience with Digitization of Monitoring Information on Collateralized Receivables, etc. Third Phase 1. 2. Expansion to Handling of New Lending Service ■ Accuracy Improvement on Examination of Loan Application by Reflecting Monitoring Information to Credit Scoring Model ■ Creation of New Market by Using XBRL Format Financial Information (CLO and SME CP, etc. ) ■ Commercialization of Advanced Electronic Lending for the wider market 2．Development of New Electronic Lending Products ■ Collateralization of Purchase Order Copyright　2006　©　Ｓhin. Ginko Ｔokyo, Limited　All　Rights　Reserved 20