Aeon Financial Service Co., Ltd. · TSE:8570
Aeon Financial Service — FY2019 1H Earnings Presentation
25 slides from Aeon Financial Service's earnings presentation, Nov 13, 2019
Slide 1: First Section of the Tokyo Stock Exchange, Stock Code 8570
First Section of the Tokyo Stock Exchange Stock Code：8570 AEON Financial Service Co., Ltd. 1
Slide 2: Agenda
1. Consolidated Business Outline and Results 2. Consolidated Results by Segments 3. FY2019 1H Initiatives 4. FY2019 2H Main Initiatives 5. FY2019 Consolidated Forecasts AEON Financial Service Co., Ltd. 3
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 ➋ loans ➌ Cash advance Shopping Cash advance Transaction volume 2,887.3 211.6 123.8 266.4 139.8 68.6 64.1 82.8 YoY +11.8
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 ※2 Ordinary income 161.1 100.0 98.1 75.2 9.5 40.0 25.5 235.9 YoY +10％ +6％ +12％ +12％ +0％ +14％ +12％ +11％ Change +15.3 +5.8 +10.4 +7.8 +0.0 +5.0 +2.
Slide 5: Consolidated segment results by graph
Consolidated segment results by graph Consolidated Domestic Global adjustments Operating Profit-¥3.0bn Operating Profit -¥4.0bn Operating Operating Income Expenses Operating Operating ＋¥15.3bn ＋¥18.3bn Income Expenses Consolidated ＋¥7.8bn ＋¥11.8bn Adjustments -¥0.9bn 【Main factors for income growth】
Slide 6: Factors that increase in loan losses in the Mekong area
Consolidated results by Segments-Factors that increase in loan losses in the Mekong area ■The balance of finance receivables steadily expanded, but the impact of the application of IFRS 9 increased loan losses. 【 Fluctuations in the balance of ・Accelerating the pace of increase in the finance receiv
Slide 7: Factors that increase in loan losses in the Malay area
Consolidated results by Segments-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 this fiscal year ＞ 【 Fluctuati
Slide 8: Consolidated results by Segments - Consolidated balance sheet
Consolidated results by Segments - Consolidated balance sheet Consolidated results Change from Topics ※（）:Change from start of FY Results （Unit：Billions of yen） start of FY ・Domestic balance：¥671.5bn (+¥64.3bn) *including holding company Cash and deposits 712.1 +67.5 → Increase due to sale of securi
Slide 9: First Half Initiatives
First Half Initiatives AEON Financial Service Co., Ltd. 10
Slide 10: 1H Initiatives - Acquire new ID/Promote card usage
1H Initiatives －Acquire new ID/Promote card usage ■Promote cashless through campaigns and issuing new credit cards 【 Card enrollment and use measures 】 【Newly issued】 AEON Card Maruetsu card Tenfold Tokimeki Points Campaign in AEON group stores （Toy Story Design） 【Add credit card instant issuance to
Slide 11: 1H Initiatives - Effects of Cashless Promotion ①
1H Initiatives －Effects of Cashless Promotion ① ■The number of new cardholder acquired was strong, mainly in the 20s and 30s. ■Confirm usage trends leading to continuous use after the end of the promotion 【 Status of membership acquisition on the 1H(Apr. to Sep.） 】 【Status of up to 20% cashback camp
Slide 12: 1H Initiatives - Effects of Cashless Promotion ②
1H Initiatives －Effects of Cashless Promotion ② ■Expand transaction volume of card shipping in and out of AEON group stores Monthly trend of transaction Trend of transaction volume in volume of card shopping and out of AEON group （bn yen） ■イオングループ外部 External 450 ■イオングループ内部 Internal （bn yen） 前年度 FY20
Slide 13: 1H Initiatives - Effects of Cashless Promotion ③
1H Initiatives －Effects of Cashless Promotion ③ ■Increase in card holders with WEB registration and AEON bank account through WEB shift of campaigns and billing statements FY2018 FY2019 1H Active cardholders １７.４９mil １７.９１mil +0.４２mil WEB registered members ８.５８mil １０.２６mil +１.６８mil WEB statement Ab
Slide 14: FY2019 2H Main Initiatives
FY2019 2H Main Initiatives AEON Financial Service Co., Ltd. 15
Slide 15: FY2019 2H Main Initiatives - Domestic
FY2019 2H Main Initiatives－Domestic ■ Strengthening the approach to members No. of cardholders 【Issuing new card】 ＋ ➢ mainly targeted at young people and No. of AEON Bank accounts customers in the Tokyo metropolitan area to Expand new ID further acquire Identity About ３０.５mil acquisition ⇒AEON Bank
Slide 16: Early recovery from consumption tax hike effects
FY2019 2H Main Initiatives－Domestic ■Early recovery from the effects of a rebound in consumption tax hikes and unseasonable weather 【Changes in card shopping volume compared to the same month of the previous year】 At the time of the last tax hike (April '14) At the time of this tax hike (October ‘19
Slide 17: FY2019 2H Main Initiatives - Domestic: New business development
FY2019 2H Main Initiatives－Domestic ■New business development Warranty Services（Started recruiting dealers） ※ Development of health-promoting products and services (planned) Regional Collaboration Solutions utilizing data (planned) ※Guarantee of quality and performance for products AEON Financial Se
Slide 18: FY2019 2H Main Initiatives - Global
FY2019 2H Main Initiatives－Global ■Strengthening cooperation with AEON group's retail business China Area Mekong Area Malay Area Countries in which we operate The Hong Kong China Thailand Cambodia Vietnam Myanmar Laos Malaysia Indonesia India Philippines AEON operation ● ● ● ● ● ● ● ● （SM） Credit ca
Slide 19: Improving convenience of products and services through FinTech
FY2019 2H Main Initiatives－Global ■Improving the convenience of products and services through FinTech Enhance services with mobile apps 【Hong Kong: Online-complete Loans】 【Indonesia: Instant Screening App ”AEON FAST”】 ・Complete with the mobile app from ・The introduction of an immediate application t
Slide 20: Progress and schedule of system/IT investments
Progress and schedule of system/IT investments Main initiatives FY2019 Main areas of investments Mobile app: add membership application & payment function Digital Shift Development of new products and expansion of fee business 【To improve quality of products/ services】 Domestic ¥20.0bn Strengthen se
Slide 21: FY2019 Consolidated forecasts
FY2019 Consolidated forecasts ■ No change in earnings forecast FY2019 ( from Apr 1. 2019 to Feb 29. 2020) FY2019 Consolidated Forecasts ※1 Full term (Reference ※2) (11months) 12 Months Conversion value Operating income ¥430.0bn ¥470.0bn Ordinary profit ¥70.0bn ¥73.0bn Net income attributable to owne
Slide 22: (Reference) FY2019 2Q Results (Hong Kong, Thailand, Malaysia)
(Reference) FY2019 2Q Results (Hong Kong, Thailand, Malaysia) FY2018 2Q FY2019 2Q Results YoY Results YoY AEON Revenue 653,394 102％ 654,867 100％ CREDIT SERVICE Operating income 275,989 128％ 230,371 83％ (ASIA) (HK$’000) Profit for the period 231,231 130％ 190,394 82％ AEON Total Revenues 10,109,906 117
Slide 23: (Reference) FY2019 2Q Results (Hong Kong, Thailand, Malaysia)
(Reference) FY2019 2Q Results (Hong Kong, Thailand, Malaysia) ■ Consolidated Results of AEON Credit Service (Asia) Co., Ltd. (Unit:Billions of yen) FY2018 2Q FY2019 2Q Exchange rates: HKD 1 Results Results YoY ・FY2018 2Q ：¥ 13.92 ・FY2019 2Q ：¥ 13.96 Operating income 9.0 9.1 101％ Fiscal period Operat
Slide 24: (Reference) Allowance for Doubtful Accounts and Allowance for 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 2Q FY2019 2Q Allowance for doubtful accounts, balance
Slide 25: 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 1H Earnings Presentation on 6ix