Aeon Financial Service Co., Ltd. · TSE:8570
Aeon Financial Service — Q1 FY2021 Earnings Presentation
23 slides from Aeon Financial Service's earnings presentation, Jul 7, 2021
Slide 1: FY2021 First Quarter IR Presentation Material
FY2021 First Quarter IR Presentation Material July 7, 2021 AEON Financial Service Co., Ltd.
Slide 2: Key points of the announcement of this financial results
Key points of the announcement of this financial results Q1 Earnings Summary ➢Consolidated financial results for the first quarter increased revenue and profit. ➢The impact of coronavirus infections in the first quarter was limited compared to the first quarter of last year. ➢ In the Domestic Busine
Slide 3: 1. Impact of infectious diseases on the economies of each country 2. Consolidated results
1. Impact of infectious diseases on the economies of each country 2. Consolidated results 3. Initiatives since the second quarter 4. Consolidated earnings forecasts AEON Financial Service Co., Ltd.
Slide 4: Impact of infectious diseases on the economies of each country
1. Impact of infectious diseases on the economies of each country Time of infection： Activity restrictions： 1Q: Q1 Status Operating Month 【Thailand, Malaysia（March to May）】 area 1 2 3 4 5 6 ・Private consumption has remained firm since April, economic activity is Declaration of a Declaration of a Jap
Slide 5: Consolidated results - Consolidated Statements of Income
(Unit：Billions of yen） 2. Consolidated results - Consolidated Statements of Income ■In the Domestic Business, revenues and profits increased due to a recovery in volumes and reductions in costs related to bad loans. ■ In the Global Business, decreased in revenues and increased in profit due to a sig
Slide 6: Consolidated results by segments - Factors contributing to increase or decrease in profit
2. Consolidated results by segments - Factors contributing to increase or decrease in profit by area ■ Reduction of Domestic and Global expenses contributes to the recovery in operating profit Domestic Global 11億円 Operating Revenue +¥12.4bn Operating Expenses +¥8.9bn +¥1.1bn Operating Impact of Expe
Slide 7: Consolidated results - Consolidated balance sheet
2. Consolidated results - Consolidated balance sheet ■In the first quarter, the outstanding amount of operating receivables such as operating loans, loan and bills discounted for banking business and accounts receivable (installment) increased by ¥165 bn. Allowance for doubtful accounts decreased by
Slide 8: Consolidated results by area
2. Consolidated results by area ■Affected by the corona disaster, the decline in the amount outstanding of receivables in Global business has been on a recovery trend. Balance of Transaction YoY YoY Increase or （Unit：Billions of yen） (Compared to the (Compared to the operating volume decrease at the
Slide 9: Transaction volume of major products and outstanding receivables
2. Consolidated results - Transaction volume of major products and outstanding amount of receivables ■ Credit card purchase increased the number of members and implemented Domestic measures to use for high-priced products. ■ Card caching digs up existing customers and stops balances from declining.
Slide 10: Transaction volume of major products and outstanding receivables
2. Consolidated results - Transaction volume of major products and outstanding amount of receivables ■ In installment finance, the balance increased due to initiatives to improve sales Domestic efficiency and measures to improve unit prices. ■ In housing loans, the amounts of transaction volume and
Slide 11: Consolidated results by area - Trends in finance
2. Consolidated results by area - Trends in finance ■Improve NPL ratio by refining screening by utilizing IT technology and credit Global information, streamlining payment guidance by analyzing repayment history, and improving debt collection systems China Area Mekong Area Malay Area Finance receiva
Slide 12: Initiatives since the second quarter
Initiatives since the second quarter AEON Financial Service Co., Ltd.
Slide 13: Change of point system of AEON card
3. Initiatives since Q2 - Change of point system of AEON card ■Credit cards and electronic money earn the same points ■ AEON Group's common promotional effects and cashless promotion by points easy to accumulate easy to use From now 1,000points Available for need to accumulated 1point＝１yen Tokimeki
Slide 14: Measures to expand card purchase volume
3. Initiatives since Q2 - Measures to expand card purchase volume ■ Strengthen sales promotion measures in time for recovery and growth in industries Domestic and business Credit card In view of the movement in the first quarter, selected industries and business type to strengthen sales purchase pro
Slide 15: Expand new revenue streams
3. Initiatives since Q2 - Expand new revenue streams ■Develop insurance products and apps to meet growing health and beauty demands Domestic ■Promote cross-selling through coupons, point benefits, etc. Development and sales of Develop new revenue models insurance products 【AEON Allianz Life Insuranc
Slide 16: Initiatives since Q2 – Thailand, Malaysia
3. Initiatives since Q2 – Thailand, Malaysia ■Develop new screening methods by utilizing the know-how and data of our partners Global ■Increase productivity and accelerate service by reorganizing our resources Customer expansion through financial inclusion 【Thailand】 Previous New Approaching Establi
Slide 17: Initiatives since Q2 – Malaysia
3. Initiatives since Q2 – Malaysia ■Applied for a license for a digital bank in response to the Malaysian government’s Global policy of promoting financial inclusion and digitization on June 30, 2021 ■Expand products, develop a new customer base by improving access, and try to cross-sell ACS Malaysi
Slide 18: Sustainability initiatives
3. Sustainability initiatives Domestic ■Development of products and services for the realization of a decarbonization society Global ■Early convergence of infectious disease spread and implementation of support for economic recovery Decarbonization initiatives Corona-related initiatives 【AEON Produc
Slide 19: FY2021 Consolidated forecasts
4. FY2021 Consolidated forecasts (Yen) Full term YoY Operating revenue 490.0 – 520.0 bn 101 – 107 ％ Operating profit 41.0 – 46.0 bn 101 – 113 ％ Profit attributable to owners of parent 19.0 – 21.0 bn 107 - 119 ％ （EPS） ( 88.04 – 97.31 ) ( +6.05 – +15.32 ) Interim Year End Full Year Payout ratio Foreca
Slide 20: (Reference) Allowance for Doubtful Accounts and Allowance for Loss on Refund of Interest Received
(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 FY2020 Q1 FY2021 Q1 Allowance for doubtful accounts, balance
Slide 21: (Reference) FY2021 Q1 Results (Hong Kong, Thailand, Malaysia)
(Reference) FY2021 Q1 Results (Hong Kong, Thailand, Malaysia) FY2020 Q1 FY2021 Q1 Results YoY Results YoY AEON Revenue 297,470 90％ 254,494 86％ CREDIT SERVICE Profit before tax 90,091 69％ 116,062 129％ (ASIA) (HK$’000) Profit for the period 75,264 70％ 96,963 129％ AEON Total Revenues 5,655,967 99％ 5,04
Slide 22: (Reference) FY2021 Q1 Results (Hong Kong, Thailand, Malaysia)
(Reference) FY2021 Q1 Results (Hong Kong, Thailand, Malaysia) ■ Consolidated Results of AEON Credit Service (Asia) Co., Ltd. (Unit:Billions of yen) FY2020 Q1 FY2021 Q1 Results Results YoY Exchange rates: HKD 1 ・FY2020 Q1 ：¥13.93 Operating income 4.1 3.5 86% ・FY2021 Q1 ：¥14.03 Operating profit 1.2 1.
Slide 23: Forward-looking statements
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 — Q1 FY2021 Earnings Presentation on 6ix