Premium Group Co., Ltd. · TSE:7199
Premium — Q1 FY2023 Earnings Presentation
33 slides from Premium's earnings presentation, Jul 29, 2022
Slide 1: Financial Results Presentation for Q1 of FY Ending March 31, 2023
Financial Results Presentation for Q1 of FY Ending March 31, 2023 July 29, 2022 TSE Prime Section: 7199 Premium Group Co., Ltd.
Slide 2: Agenda
1. Summary of Financial Results for Q1 of FY Ending March 31, 2023 2. Finance Segment 3. Automobile Warranty Segment 4. Auto Mobility Segment 5. Car Premium Segment 6. Other Topics 7. Appendix 2
Slide 3: Key Messages
Key Messages Market Environment ◼ Number of new vehicles sold and used passenger vehicles registered down year on year due to recent business environment circumstances ◼ Severe market conditions continue with declining used vehicle inventories and rising unit prices Our KPIs and Performance ◼ Credit
Slide 4: 1. Summary of Financial Results for Q1 of FY Ending March 31, 2023
1. Summary of Financial Results for Q1 of FY Ending March 31, 2023 4
Slide 5: Highlights from Q1 of FY Ending March 31, 2023 (1)
Highlights from Q1 of FY Ending March 31, 2023 (1) ◼ Market continues to fall below previous year's levels ◼ Growth in volume of new loans for both credit finance and automobile warranty Market KPIs (Millions of yen) Number of new vehicles sold Number of used passenger Total volume of new loans Tota
Slide 6: Highlights from Q1 of FY Ending March 31, 2023 (2)
Highlights from Q1 of FY Ending March 31, 2023 (2) ◼ Higher profits and sales ◼ Future expected earnings (deferred profit): ¥38,014 million stocked on BS Performance Future expected earnings (deferred profit) (Millions of yen) Operating income Profit before tax Credit finance Up 16.2% YoY Up 39.0% Y
Slide 7: Highlights from Q1 of FY Ending March 31, 2023 (3)
Highlights from Q1 of FY Ending March 31, 2023 (3) ◼ Implementing various measures for medium- to long-term growth Main Topics Stock Split Presenting Operating Full-Scale Launch of Car Launch of Car Profit & Earlier Premium Business & Premium Website Announcement of Segment Reorganization Financial
Slide 8: Segment Reorganization
Segment Reorganization ◼ Reclassified reporting segments due to the rising importance of the Car Premium Club, the generation of greater Group synergy, and expanding our business Finance segment Automobile warranty segment Auto mobility segment Car Premium segment Premium Co., Ltd. Premium Warranty
Slide 9: Consolidated Performance
Consolidated Performance (Millions of yen) ◼ Operating income of ¥5,682 million, up 16.2% YoY ◼ Profit before tax totaled ¥1,157 million (up 39.0％ YoY) due to lower operating expenses from DX measures and Group synergies YoY Operating income FY22 Q1 FY23 Q1 change 5,682 4,891 Operating income 4,891
Slide 10: Operating Expenses (Breakdown)
Operating Expenses (Breakdown) (Millions of yen) ◼ Achieved lower rise in operating expenses than the growth in operating income FY22 Q1 Operating expenses FY23 Q1 Operating expenses ¥4,099 million ¥4,614 million (up 12.6% YoY) (YoY change) Operating income 4,891 Operating income 5,682 (+16.2%) Guar
Slide 11: Full-Year Performance Outlook
Full-Year Performance Outlook (Millions of yen) ◼ Both revenue and profit progressing according to full-year forecast ◼ Quarterly performance is to increase gradually from the further accumulation of loan receivables Operating income Profit before tax 24,500 (Forecast) 4,700 (Forecast) 20,827 4,017
Slide 12: Performance by Segment
Performance by Segment (Millions of yen) ◼ Each segment steadily setting new record highs for operating income ◼ New businesses providing greater share of operating income FY23 Q1 Operating income Operating income Profit before tax Credit finance Automobile warranty Auto mobility Car Premium Excludi
Slide 13: 2. Finance Segment
p Premium 2. Finance Segment 13
Slide 14: Total volume of new loans
Finance segment Total volume of new loans (Graph unit: billions of yen, %) ◼ Despite negative impact in the automobile market, volume of new loans grew, up 12.9% YoY Volume of new loans ◼ Retain dealers through conversion to paid memberships, maintaining our Up 12.9% YoY competitive advantage and ex
Slide 15: Loan receivables
Finance segment Loan receivables (Graph unit: billions of yen, %) ◼ Continued elimination of initial arrears reduction by achieving efficient Loan receivables calling through DX measures Up 16.9% YoY ◼ Strengthened collection activities for medium- to long-term delinquencies jointly with servicer su
Slide 16: Other Indicators
Finance segment Other Indicators ◼ Working to promote utilization and increase share among existing network stores while continuing to develop new network stores ◼ Though we have no plans to significantly increase our sales staff in FY2023, we aim to increase the volume of new loans by establishing
Slide 17: 3. Automobile Warranty Segment
3. Automobile Warranty Segment 17
Slide 18: Total volume of new warranties
Automobile warranty segment Total volume of new warranties (Graph unit: millions of yen) ◼ Despite a sluggish market, the total volume of new warranties was up Product volume 14.8% YoY Up 14.8% YoY ◼ By focusing on sales expansion of products developed in-house, significant growth continued for in-h
Slide 19: Parts Sales / Cost Reduction Measures
Automobile warranty segment Parts Sales / Cost Reduction Measures (Graph unit: millions of yen) ◼ Limited cost of sales ratio by promoting use of maintenance network and used parts procurement in-house ◼ Growth in parts sales even outside of intra-Group transactions Parts sales (external) Parts sale
Slide 20: 4. Auto Mobility Segment
p Premium 4. Auto Mobility Segment 20
Slide 21: Auto Mobility Segment Performance
Auto mobility segment Performance (Graph unit: millions of yen) ◼ We have reclassified our segments as of FY2023, transferring the creation of membership organizations for maintenance facilities to the Car Premium segment ◼ In the auto mobility segment, we are focusing on developing services for mob
Slide 22: 5. Car Premium Segment
p Premium 5. Car Premium Segment 22
Slide 23: Car Premium Club Memberships
Car Premium segment Car Premium Club Memberships ◼ From FY2023, we have made this business independent as the Car Premium segment, aiming to further expand membership organizations ◼ Steady progress in building Car Premium Club, a paid membership organization for car dealers and maintenance faciliti
Slide 24: Symbol and logo
Car Premium segment Symbol and logo ◼ Creating a new symbol and logo for the end-users Design Symbol The silhouettes of the cars above and below shows that we support all about cars and represent a cycle that provides peace of mind. Logo The boldness of the lettering gives a sense of dependability a
Slide 25: 6. Other Topics
p Premium 6. Other Topics 25
Slide 26: Our DX Strategy
Our DX Strategy ◼ In approximately one year from formulating our DX strategy, we built our DX initiative platform and became a Noteworthy DX Company 2022 and a DX Certified Business Operator ◼ Seeking to realize our concept as a platform provider of connecting end-users and mobility providers Achiev
Slide 27: 7. Appendix
7．Appendix 27
Slide 28: Company Profile
Company Profile Name Premium Group Co., Ltd. Securities Code / Exchange 7199 / Prime Market of Tokyo Stock Exchange May 25, 2015 Established Note: 2007 Established Premium Co., Ltd. (Former name: G-ONE Credit Services Co., Ltd.) Head Office The Okura Prestige Tower, 2-10-4 Toranomon, Minato-ku, Toky
Slide 29: Company Profile
Company Profile Premium Group is “Auto Mobility Company” We(contain car dealers and garages) providing rich car life with customers Main Business Diversified Business Portfolio as an Independent Company Automobile Finance Auto Mobility Warranty Services ▷Main business ▷ Main business 14％ ・Auto credi
Slide 30: BS (Millions of yen)
Note: Since it is a preliminary value, we will promptly notify you on our website when any corrections or changes occur. BS (Millions of yen) Compared to Q1.FY22 FY22 Q1.FY23 previous QoQ (As of June 30, 2021) (As of March 31, 2022) (As of June 30, 2022) quarter Assets Cash and cash equivalents 6,96
Slide 31: PL (Millions of yen)
Note: Since it is a preliminary value, we will promptly notify you on our website when any corrections or changes occur. PL (Millions of yen) Q1.FY22 Q4.FY22 Q1.FY23 (April 1 - June 30) YoY QoQ (April 1, 2021 - June 30, 2021) (January 1, 2022 - March 31, 2022) (April 1, 2022 - June 31, 2022) Operati
Slide 32: PL (Operating income/Operating expenses)
Note: Since it is a preliminary value, we will promptly notify you on our website when any corrections or changes occur. PL（Operating income/Operating expenses） (Millions of yen) Q1.FY22 Q4.FY22 Q1.FY23 (April 1 - June 30) YoY QoQ (April 1, 2021 - June 30, 2021) (January 1, 2022 - March 31, 2022) (A
Slide 33: Disclaimer
IR information in this material is for providing financial data and economic condition of Premium Group Co., Ltd. (Hereinafter “Company”). However, this information should not announce and guarantee its contents. Statements contained herein that relate to the future operating performance and strateg