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: Results for the FY2021 Q1 Scripts and QAs
This is an abridged translation of the original Japanese document and is provided for informational purposes only. If there are any discrepancies between this and the original, the original Japanese document prevails. Results for the FY2021 Q1 Scripts and QAs Scripts P.1 Today, while you are busy, t
Slide 2: Summary of first quarter results
P.2 ・Consolidated financial results for the first quarter increased revenue and profit. ・The impact of covid-19 in the first quarter was limited compared to the first quarter of last year. ・The volume of transactions in the Domestic Business was on a recovery trend in September 2021, and the amount
Slide 3: Order of explanation
P.3 ・The explanations are in the order you see on screen.
Slide 4: COVID-19 infection situation by country
P.4 ・The table above is a list of the situations of new coronal infections in each country. The red area indicates the time of spread of the infection, arrows indicates activity restricted period and the red line is the first quarter of the consolidation period. Each country is also in a situation w
Slide 5: Consolidated financial results for the first quarter
P.5 ・Next, details of consolidated financial results for the first quarter. ・In the consolidated total, operating revenue was ¥122.2 billion, 111% year-on-year, up ¥12.2 billion year-on-year, operating profit was ¥20.7 billion, up ¥21.5 billion year-on- year, profit attributable to owners of parent
Slide 6: Domestic and Global Business results
P.6 ・The increase in operating revenues in the Domestic Business was largely due to the ¥11.3 billion impact of the consolidation of AEON Allianz Life Insurance. Due to an increase in revenue due to strong credit card purchase, secured an increase revenue even excluding the impact of Allianz. In add
Slide 7: Total assets, liabilities and operating receivables
P.7 ・Total assets was ¥6,171.3 billion, up ¥47.6 billion from the beginning of the fiscal year. Total liabilities increased by ¥5,680.7 billion, up ¥31.6 billion from the beginning of the fiscal year. Total equity was ¥490.6 billion, up ¥15.9 billion from the beginning of the fiscal year. ・Total ope
Slide 8: Transaction volumes and cardholders
P.8 ・The table above lists the transaction volumes in the Domestic and Global Businesses and the outstanding amount of operating receivables, and the transaction volumes are also described as reference values compared to the previous year before Corona was affected. ・The number of cardholders was en
Slide 9: Revolving, installment and cash advance receivables
P.9 ・The amount outstanding of revolving and installment finance receivables shown in the bar chart on the left stopped declining in the first quarter and has been on an inverting trend. In addition to expanding the number of cardholders, it is thought that the results of measures such as planning t
Slide 10: Installment finance and housing loans
P.10 ・The amount outstanding of installment finance and housing loans remained firm. ・In addition to efforts to improve sales efficiency by introducing digital proposals for merchants, auto loans have increased their balances due to joint campaigns with merchants and the promotion of free-repayment
Slide 11: Operating receivables and NPL by area
P.11 ・As for the amount outstanding of operating receivables, it can be confirmed that each Areas have bottomed out or started to increase as shown in the bar chart. ・With about the contents of the claims, in the China Area, the accuracy of credit in the process was improved by utilizing the alert s
Slide 12: Initiatives since the second quarter
Initiatives since the second quarter AEON Financial Service Co, Ltd P.12
Slide 13: Change to WAON POINT and AEON Living Zone
P.13 ・As released today (July 7), the AEON Card point system has been changed from the current TOKIMEKI point to "WAON POINT". ・One of its growth strategies is to create an "AEON Living Zone" that brings together the comprehensive strengths of each group company and seamlessly provides products, ser
Slide 14: Measures by recovery and growth category
P.14 ・Due to significant changes in customers' consumption behavior regarding activity restrictions and the establishment of new lifestyles, industries and business categories that can be expected to grow in the future are classified into three categories. ・We will implement measures tailored to eac
Slide 15: New revenue streams: insurance and health and beauty
P.15 ・In order to expand new revenue streams that are not bound by the boundaries of financial services, we will strengthen our efforts to address the growing demand for health and beauty in particular this fiscal year. ・The first is the development and sale of insurance products. In May 2021, AEON
Slide 16: Customer expansion through financial inclusion
P.16 ・As an initiative to expand customers through financial inclusion, which is a priority implementation of this fiscal year, the BTS Group which operates elevated railways in Thailand and a contracted labor management outsourcing company established a joint venture for the loan business. ・In addi
Slide 17: Digital bank license application in Malaysia
P.17 ・While the need for asset management products is expanding in Asian countries due to the increase in household income and the aging of the population, it is also true that there are still many so-called unbanked people who have low bank account ownership and do not have access to financial serv
Slide 18: Decarbonization and COVID-19 support initiatives
P.18 ・We recognize that efforts to realize a decarbonization society are also an important issue for financial services companies. ・AEON Product Finance and AEON Bank plan to provide loans packaged with build decarbonized homes, renovation and electric vehicles. We will promote initiatives for decar
Slide 19: Earnings and dividend forecasts
P.19 ・Earnings forecasts Operating revenue was ¥490 billion yen to 520 billion, Operating income was ¥41 to 46 billion, Profit attributable to owners of parent was ¥19 to 21 billion. ・Dividend forecasts End of 2nd quarter ¥14, year-end ¥26, annual ¥40, None of these results are currently revised fro
Slide 20: QAs: Daiwa Securities and UBS analysts
QAs ■Mr. Watanabe, analyst at Daiwa Securities Q: Malaysia's bad loan reserves have decreased to 21.8 billion yen. Is it factoring in the impact of the lockdown? A: Malaysia's bad debt reserves were due to the recent improvement in collections since last year, and debt collection has been good. On t
Slide 21: QAs: SMBC Nikko and Mitsubishi UFJ Morgan analysts
■Mr. Hara, analyst at SMBC Nikko Securities Q: Could you tell us about the medium- to long-term changes in costs related to changes in the domestic point system? A: Originally planned costs will be recorded in the second half of the year. Regarding medium- to long-term costs, due to the nature of po
Slide 22: QAs: JP Morgan and Citigroup analysts
Q: This time, a change in the points system was released. It is expected to cost about ¥12 billion in the second half of the year, costing Allianz, credit cards and points. When it comes to increasing the point reserves, is it not a temporary cost to bring over to the next fiscal year? In the explan
Slide 23: QAs: Mizuho Securities analyst
profit level. In the first quarter, we originally planned that the effects of the new coronavirus would be up to the first quarter of each country. As a result, the impact of coronavirus did not appear in terms of performance. We continue to assume conservatively from the second quarter onwards. Q:
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