Aeon Financial Service Co., Ltd. · TSE:8570
Aeon Financial Service — FY2019 Earnings Presentation
21 slides from Aeon Financial Service's earnings presentation, Apr 10, 2020
Slide 1: Final results for the FY2019
Final results for the FY2019 April 10, 2020 First Section of the Tokyo Stock Exchange Stock Code：8570 AEON Financial Service Co., Ltd. 1
Slide 2: Agenda and period of consolidated results
1. Consolidated business outline and results 2. Consolidated results by segments 3. FY2019 main initiatives and content 【Period of consolidated results in financial statements】 Due to changes in the fiscal year (from the end of March to the end of February), the period of consolidated results of the
Slide 3: Consolidated business outline and results
Consolidated business outline and results Domestic Global Credit card ➊ Credit card (Unit: billions of yen) Installment Housing Installment Personal Shopping sales loan (※1) sales loans Cash advance Shopping Cash advance ➋ ➌ Transaction volume 5,378.3 379.6 218.3 567.8 291.2 135.4 132.7 156.9 YoY (※
Slide 4: Consolidated results by segments
Consolidated results by segments (Unit：Billions Domestic total Global total Consol. of yen） China Mekong Malay Total ※1 Retail Solutions ※1 Area Area Area ※3 ※2 ※2 Operating income 302,0 185.6 182.3 154.9 18.9 84.1 51.9 457.2 YoY 101％ 98％ 100％ 111％ 97％ 116％ 110％ 104％ Change +3.7 △2.9 +0.6 +15.7 △0.6
Slide 5: Consolidated segment results by graph
Consolidated segment results by graph Consolidated Domestic Global adjustments Operating Profit +¥2.1bn Operating Profit-¥5.1bn ※Simple increase or decrease: Operating Operating The cumulative period for 12 months Income Expense in FY2018 and 11months in FY2019 Consolidated （Some subsidiaries are fo
Slide 6: Factors that increase in loan losses in the Mekong area
Factors that increase in loan losses in the Mekong area ■The balance of receivables steadily expanded, but the loan losses increased due to deteriorating economic conditions ・ Accelerating the pace of increase in the balance of finance receivables 【Balance of finance receivables at the beginning fro
Slide 7: Factors that increase in loan losses in the Malay area
Factors that increase in loan losses in the Malay area ■Due to changes in the situation in the previous fiscal year and the current fiscal year, loan losses increased significantly from the same period of the previous year. ＜Topics for current fiscal year＞ 【Balance of finance receivables at the begi
Slide 8: Consolidated balance sheet
Consolidated balance sheet Consolidated results Change from Topics ※（）:Change from start of FY Results （Unit：Billions of yen） start of FY ・Domestic balance：¥716.0bn (+¥108.9bn) *including holding company Cash and deposits 762.8 +118.3 → Increase due to sale of securities and securitization Operating
Slide 9: Changes in the financial structure
Changes in the financial structure ■Centralize domestic funding and expand direct funding ・By issuing ¥180 billion corporate bonds in FY2019, prolonged (approximately 50% of long- term ratio) and stabilized funding ・Shift from indirect funding to direct funding (financial costs for AFS : -11bp by sh
Slide 10: FY2019 main initiatives and content
FY2019 main initiatives and content AEON Financial Service Co., Ltd. 8 10
Slide 11: Strengthening customer base in younger generations and urban areas
ID Acquisition (domestic) ■Strengthening customer base mainly in younger generations and urban areas New Products and Services ・Sumitomo Real Estate In addition to implementing new ・Maruetsu Card Shopping City AEON Card 【Number of cardholders in 20s & 30s】 enrollment and use campaigns (Unit: thousan
Slide 12: Promoting digitization
Promoting digitization ■Improving convenience and expanding customer base and transaction volume by utilizing digital tools such as smartphones Domestic China Area ■Added card acquisition function and ■Online Complete Loans (Hong Kong) immediate issuance service to smartphone app "AEON WALLET" ・Comp
Slide 13: Result of Systems/IT Investments
Result of Systems/IT Investments ■Domestic：Achieved the target level of operating expenses related to personnel expense and loan losses through paperless ness, consolidated head office functions, and system infrastructure development ■Global ： Focusing on expanding services utilizing mobile devices,
Slide 14: Domestic Biz: Web Support Services
Domestic Biz: Web Support Services ■ Increased ratio of AEON Card web based statement significantly ■ Increased net banking registration ratio for AEON bank account holders ■ The over-the-counter procedures for card acquisition and investment account opening are completed on a tablet device（Paperles
Slide 15: Global Biz: Expanding ID centered on mobile devices
Global Biz: Expanding ID centered on mobile devices ■Providing key products and services through mobile apps M：Mobile China Mekong Malay enabled The Hong Kong China Thailand Cambodia Vietnam Myanmar Laos Malaysia Indonesia India Philippines Credit cards M M M M Personal loans M M M M M Installment c
Slide 16: Reasons for undecided fiscal 2020 consolidated earnings forecasts
Reasons for undecided fiscal 2020 consolidated earnings forecasts ＜Excerpts from Brief Report of Financial Results＞ The environment surrounding the AFS Group is uncertain due to the stagnation of economic activity caused by the declaration of emergency and various regulations issued by governments a
Slide 17: (Reference) FY2019 Results (Hong Kong, Thailand, Malaysia)
(Reference) FY2019 Results (Hong Kong, Thailand, Malaysia) FY2018_4Q FY2019_4Q Results YoY Results YoY AEON Revenue 1,322,678 102％ 1,297,686 98％ CREDIT SERVICE Profit before tax 524,122 116％ 444,930 85％ (ASIA) (HK$’000) Profit for the period 437,254 116％ 370,083 85％ AEON Total Revenues 20,641,701 11
Slide 18: (Reference) FY2019 Results (Hong Kong, Thailand, Malaysia)
(Reference) FY2019 Results (Hong Kong, Thailand, Malaysia) ■ Consolidated Results of AEON Credit Service (Asia) Co., Ltd. (Unit:Billions of yen) FY2018 FY2019 Results Results YoY Exchange rates: HKD 1 ・FY2018 ：¥ 14.08 Operating income 18.6 18.1 97％ ・FY2019 ：¥13.96 Operating profit 7.3 6.2 84％ Fiscal
Slide 19: (Reference) Allowance for Doubtful Accounts and Loss on Refund of Interest
(Reference) Allowance for Doubtful Accounts and Allowance for Loss on Refund of Interest Received by Segment ■ Allowance for Doubtful Accounts (by Segment) ■ Allowance for Loss on Refund of Domestic Interest Received Retail Solutions Total FY2018 4Q FY2019 4Q Allowance for doubtful accounts, balance
Slide 20: (Reference) Direction of management: Beyond Finance
(Reference) Direction of management ■We aim to transform from financial services company to comprehensive services company Issues in Japan and overseas Future Initiatives of AEON Financial Services Outcomes < Company-wide mission > The most convenient Beyond Finance and profitable service in AEON Su
Slide 21: AEON Financial Service Co., Ltd.
Statements contained in this report with respect to the Company’s management strategies, business policies and results forecasts are forward- looking statements about the future performance of the Company, which are based on the assumptions and beliefs in light of the information currently available
AEON Financial Service — FY2019 Earnings Presentation on 6ix