Aeon Financial Service Co., Ltd. · TSE:8570
Aeon Financial Service — Q3 FY2021 Earnings Presentation
33 slides from Aeon Financial Service's earnings presentation, Jan 12, 2022
Slide 1: FY2021 Q3 IR Presentation Materials
FY2021 Q3 IR Presentation Materials 12 January, 2022 AEON Financial Service Co., Ltd. Stock Listing: Tokyo Stock Exchange, First Section AEON Financial Service Co., Ltd. Code No: 8570
Slide 2: Contents
Contents 1. Q3 Financial Highlights 2. Covid-19 situation through Q3 3. Q3 Initiatives 4. Q4 Initiatives 5. ESG Initiatives 6. APPENDIX AEON Financial Service Co., Ltd. 1
Slide 3: Q3 Financial Highlights (Consolidated results)
1. Q3 financial Highlights・Financial Highlights (Consolidated results ) The highlights of the consolidated results for Q3 ・Consolidated results for the cumulative Q3 decreased revenues and increased profits. Operating revenue is at the same level as the same period of the previous year, excluding th
Slide 4: Annual earnings forecast
1. Q3 financial Highlights・Annual earnings forecast Annual earnings forecast ・Operating revenue revised downward to ¥460 bn due to sluggish growth in receivables and a decrease in insurance revenue due to the expiration of existing insurance contracts of AEON Allianz Life Insurance Operating profit
Slide 5: Q3 3 Months Consolidated Performance Highlights
1. Q3 financial Highlights・Financial Highlights (Consolidated results ) The 3rd Quarter 3 Months Consolidated Performance Highlights ・Domestic business：Operating profit of ¥2.6 bn is due to delayed recovery of receivables, decrease in insurance revenue point costs due to increased transaction volume
Slide 6: Covid-19 situation through Q3: Operating countries situation
2. Covid-19 situation through Q3・Operating countries situation Spread of infection and restrictions on activity in the operating countries Period of Activity Status of FY2021 Q3 3monts 感染拡大時期： pandemic 活動制限： restrictions Q3： 【TH、MY（Sep -Nov)】 Operating Month Activity restrictions significantly relax
Slide 7: Receivables balance, NPL ratio (Global business)
3 . Q3 Initiatives・Receivables balance, NPL ratio (Global business) Receivables balance, NPL ratio (Global business) ・The balance of operating loans and accounts receivable-installment is reversed in each area Especially in China area, the recovery of balance is remarkable ・Continued improvement of
Slide 8: Initiatives for Q3 FY2021 (ACS Asia)
3 . Q3 Initiatives・ACS Asia Initiatives for the 3rd Quarter of FY2021 (ACS Asia) October 1st-31st ・Credit card shopping txn vol expanded mainly for revenge consumption by Points 10 times campaign strengthening sales promotion at restaurants and amusement parks. （Use of restaurants) Online shopping t
Slide 9: Initiatives for Q3 FY2021 (AEON Thana Sinsap)
3 . Q3 Initiatives・AEON Thana Sinsap Initiatives for the 3rd Quarter of FY2021 (AEON Thana Sinsap) August 1st-September 30th ・Conduct online and travel-related product campaigns Online shopping promotion Credit card shopping txn vol recovered to 102% yoy in Q3 (3 months) ・As a result of steadily cap
Slide 10: Initiatives for Q3 FY2021 (ACS Malaysia)
3 . Q3 Initiatives・ACS Malaysia Initiatives for the 3rd Quarter of FY2021 (ACS Malaysia) ・In addition to ■Trends in motorcycle transaction volume October 1st- November 30th small motorcycles, 3.0x installment finance Small motorcycle Use of financial strengthen the txn Large motorcycle products camp
Slide 11: Credit card shopping and cash advance
3 .Q3 Initiatives・ Card shopping and cash advance (Domestic) Credit card shopping and cash advance ・Credit card shopping txn vol reached a record high ・Cash advance txn vol is on a recovery trend of ¥4.4 tn in the cumulative Q3, and is expected to The balance also bottomed out in Q3 continue expandi
Slide 12: Q3 Initiatives (Domestic)
3 . Q3 Initiatives・ Q3 Initiatives（Domestic） Initiatives for the third quarter of FY2021 (Domestic) ・The number and amount of AEON Pay payments ・Promote the consolidation of sales promotion plans into increased significantly after the WAON POINT 20x WAON POINT campaign was implemented ・In addition t
Slide 13: Q4 Initiatives
業績ハイライト・概要 第3四半期以降の取り組み Q4 Initiatives AEON Financial Service Co., Ltd. 12
Slide 14: Annual operating profit plan: second half impact
4 .Q4 Initiatives・Annual operating profit plan About the profit and loss impact in the second half ・Continued to work on refinement of screenings in Global business although the recovery of the balance of receivables was delayed in Domestic business. Annual operating profit is expected to be ¥51 bn
Slide 15: What the domestic business should aim for
4 .Q4 Initiatives・What we should aim for (Domestic) What the domestic business should aim for ・Utilizing the base of AEON Card members, Sustainability strategy expanding the places where points and payments can be used, and working on new E Environmental Social support S contribution businesses with
Slide 16: Priority measures for Q4: Initiatives with the AEON Group
4 .Q4 Initiatives・Priority measures for Q4 (Domestic) Initiatives with the AEON Group ■Sales promotion utilizing WAON POINT and AEON Pay ・For card shopping, continued to carry out WAON POINT grant campaigns for the year-end and New Year sales season, revenge consumption, and expansion of e-commerce
Slide 17: Initiatives with the outside of the AEON Group
4 .Q4 Initiatives・Priority measures for Q4 (Domestic) Initiatives with the outside of the AEON Group ■Utilization the base for AEON Card member ・AEON Product Finance and Sojitz Corporation conclude a strategic partnership Closed car distribution on November 25 platform for AEON Card members ・As the
Slide 18: Priority measures for Q4 (Global): Expansion of top line
4 .Q4 Initiatives・Priority measures for Q4 (Global) Expansion of top line ■Year-end and New Year sales season, revenge consumption promotion 【Hong Kong, Thailand, Malaysia】 【Thailand】 ・Cashback campaign implemented according to the amount of card usage in HK ・Gift campaigns implemented according to
Slide 19: Cultivating new sources of revenue
4 .Q4 Initiatives・Priority measures for Q4 (Global) Cultivating new sources of revenue ■Strengthening insurance business ■Issuance of health-specialized alliance cards 【Thailand】 【Thailand】 ・Completion of transfer of Thailand subsidiary insurance business 「AEON Wellness Card」 ・Started sales of insur
Slide 20: Digitization Initiatives
4 .Q4 Initiatives・Priority measures for Q4 (Global) Digitization Initiatives ■Promotion of cardless and paperless offices by using apps (Thailand) ・From June 2021, the application for new member card members completely was switched to app members. At the same time, we do not issue paper invoices, on
Slide 21: Efforts to realize a carbon-free society (Domestic)
5. ESG Initiatives・Environmental Contribution Initiatives Efforts to realize a carbon-free society (Domestic) ■Promotion of clean energy (AEON Product Finance) ・AEON Product Finance supports the shift to a "decarbonized lifestyle" by providing solar loans ・The company's living space-related transact
Slide 22: Support for small businesses (ACS Malaysia)
5. ESG Initiatives・Social support efforts Support for small businesses (ACS Malaysia) ・Started a tie-up with the Small Business Association (1.8 million members) that small businesses retailor that run food stalls, etc. when acquiring a license ・E-commerce payment and account functions are added to
Slide 23: Apply to the prime market and formulate a sustainability policy
5. ESG Initiatives・Domestic business initiatives Apply to the prime market and formulate a sustainability policy ・Decided to be listed on the “Prime Market” on January 11, 2022 when the TSE market is reorganized in April 2022. ・Established the "Sustainability Policy" which is the principle of the Gr
Slide 24: Annual earnings forecast (Repost)
1. Q3 financial Highlights・Annual earnings forecast Annual earnings forecast (Repost) ・Operating revenue revised downward to ¥460 bn due to sluggish growth in receivables and a decrease in insurance revenue due to the expiration of existing insurance contracts of AEON Allianz Life Insurance Operatin
Slide 25: Cumulative Q3 results by segment
6. APPENDIX・Segment Results Cumulative Q3 results by segment （Unit：Billions of yen） Domestic Global Consol. Total Retail Solution Total Mekong Total ※1 ※2 ※2 ※1 China Area Area Malay Area ※3 Operating Revenue 245.8 159.9 130.4 103.5 11.4 54.3 37.7 348.7 YoY 95％ 95％ 95％ 100％ 95％ 96% 107％ 96％ Change -
Slide 26: Cumulative Q3 Profit Increase / Decrease by Area
6. APPENDIX・Factors of profit increase / decrease by area Cumulative Q3 Profit Increase / Decrease by Area （Unit：Billions of yen） Domestic Global Operating Revenue Operating Operating Operating Operating Operating FY2020 Revenue Expense Revenue Expense Profit Q1-Q3 -12.6 -14.0 -0.03 -18.2 FY2021 Q1-
Slide 27: Q3 results by area
6. APPENDIX・Area Results Q3 results by area （Unit：Billions of yen） Q3 (3 months) Q3 cumulative Transaction Compared to Compared Transaction Compared to the Balance of Increase / decrease Increase / decrease volume the same period to the last volume same period two receivables at the beginning of in
Slide 28: Q3 results by area: cardholders
6. APPENDIX・Area Results Q3 results by area Cardholders Consolidated Diff from beginning Domestic Diff from beginning Global Diff from beginning of the FY of the FY of the FY Results (unit：million copies) 47.02 +0.89 29.93 +0.48 17.09 +0.41 【Domestic】 ・1.18 million new card members (YoY -0.01 millio
Slide 29: Q3 Consolidated Balance Sheet
6. APPENDIX・Consolidated Balance Sheet Q3 Consolidated Balance Sheet ■In the third quarter, the amount outstanding of operating receivables, including operating loans, banking loans, and installment receivables, decreased by ¥11.6 bn 【Consolidated operating receivables balance】 ・ Balance incl. secur
Slide 30: Allowance for Doubtful Accounts and Loss on Refund of Interest by Segment
6. APPENDIX Q3 Allowance for Doubtful Accounts and Allowance for Loss on Refund of Interest Received by Segment （Unit：Billions of yen） Domestic Retail Solutions FY2020 Q3 FY2021 Q3 Total Allowance for doubtful accounts, balance at Beginning of 4.8 57.4 61.7 period 4.9 5.7 beginning of period Provisi
Slide 31: Q3 Global Business Results (Local currency)
6. APPENDIX・ Global Business Results Q3 Global Business Results (Local currency) FY2020 Q1-Q3 FY2021 Q1-Q3 Results YoY Results YoY AEON CREDIT Revenue 839,595 86% 770,280 92% SERVICE (ASIA) Profit before tax 275,257 82% 291,839 106% (HK$’000) Profit for the period 230,371 83% 243,256 106% AEON Total
Slide 32: Q3 Global Business Results (Yen conversion)
6. APPENDIX・Global Business Results Q3 Global Business Results (Yen conversion) （Unit：Billions of yen） AEON Credit Service FY2020 Q3 FY2021 Q3 (Asia) Co., Ltd. Results Results YoY Exchange rates: HKD 1 Operating income 11.5 10.9 95％ ・FY2020 Q3 ：¥13.73 ・FY2021 Q3 ：¥14.2 Operating profit 3.7 4.1 110％
Slide 33: Statements contained in this report with respect to the Company’s systems that may cause
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 — Q3 FY2021 Earnings Presentation on 6ix