Fp Partner, Inc. · TSE:7388

Fp Partner — FY2024 Earnings Presentation

67 slides from Fp Partner's earnings presentation, Jan 14, 2025

  1. Slide 1: Financial Results Briefing Materials for the Fiscal Year Ended November 30, 2024

    Financial Results Briefing Materials for the Fiscal Year Ended November 30, 2024 FP Partner Inc. January 14, 2025

  2. Slide 2: Table of Contents

    Table of Contents 01 Financial Highlights for the Fiscal Year Ended November 30, 2024 Achievement of Priority Measures for the Fiscal Year Ended November 30, 2024 / 02 Targets of Priority Measures for the Fiscal Year Ending November 30, 2025 Measures to Achieve Management That Is Conscious of 03 the

  3. Slide 3: Financial Highlights for the Fiscal Year Ended November 30, 2024

    01 Financial Highlights for the Fiscal Year Ended November 30, 2024 Copyright © FP Partner Inc. All Rights Reserved. 3

  4. Slide 4: Financial Highlights for the Fiscal Year Ended November 30, 2024

    Financial Highlights for the Fiscal Year Ended November 30, 2024 [YoY] ⚫ Net sales increased significantly by 16.6% YoY, driven by strong new policy acquisition. ⚫ Profit fell below the previous year’s levels for all three categories. Net sales Operating profit Ordinary profit Profit 35,617 5,330 5,

  5. Slide 5: Financial Highlights: Key KPI

    Financial Highlights for the Fiscal Year Ended November 30, 2024 [Key KPI] ⚫ Each key KPI item increased compared to the previous year and continued to show strong performance. ⚫ The number of policy transfers agreed to, contributing to future profit margin improvement, grew significantly by 87.3% Y

  6. Slide 6: Factors Behind the Operating Profit Not Reaching the Revised Earnings Forecast

    Factors Behind the Operating Profit Not Reaching the Revised Earnings Forecast Background Expected to be covered by an increase in business 1 quality support fee 2 Increase in remuneration for Change in sales and product mix sales employees Purpose Decrease in sales volume of high-margin level- Chan

  7. Slide 7: Overview of Financial Results and the New Business Plan

    Overview of Financial Results for the Fiscal Year Ended November 30, 2024 and Overview of the New Business Plan [Fiscal Year Ending November 30, 2025 to Fiscal Year Ending November 30, 2027] ⚫ The increase in sales employees and response to growing asset formation needs resulted in an increase in ne

  8. Slide 8: Financial Highlights: Achievement Versus the Full-Year Forecast

    Financial Highlights for the Fiscal Year Ended November 30, 2024 [Achievement Versus the Full -Year Forecast] ⚫ Net sales ended up 0.03% below the earnings forecast from the beginning of the fiscal year. Profits fell significantly below the revised forecast. (Unit: Millions of yen) (Unit: Millions o

  9. Slide 9: Income Statement for Fiscal Year Ended November 30, 2024

    Income Statement for Fiscal Year Ended November 30, 2024 (Unit: Millions of yen) Fiscal year ended November 30, Fiscal year ended November 30, 2024 ⚫ Although net sales increased by 16.6% 2023 YoY, operating income decreased by Year-on-year change Ratio to Ratio to net 4.0% YoY. net sales sales Perc

  10. Slide 10: Net Sales, Operating Profit, and Profit [Past Five Fiscal Years]

    Net Sales, Operating Profit, and Profit [Past Five Fiscal Years] Trends in net sales (Unit: Millions of yen) 116.6% 35,617 35,000 119.3% 30,559 30,000 122.4% 25,605 25,000 120.9% 20,919 Average growth 20,000 17,301 rate over the 15,000 past four years 10,000 5,000 19.8% 0 Fiscal year ended 2020年11月

  11. Slide 11: Number of Sales of Level-Payment Products

    Financial Highlights for the Fiscal Year Ended November 30, 2024 [Number of Sales of Level -Payment Products] (Unit: Number of sales) 181,580 Year-on-year ⚫ The number of level payment product sales change increased in the second half as a result of 106.4% 170,730 the materialized needs through fina

  12. Slide 12: Earnings Model [Life and Non-life Insurance]

    Earnings Model [Life and Non-life Insurance] In the case of life insurance Breakdown and trends of commission income from life insurance sales ⚫ The period of commission receipt varies from 5 to 10 years First-year Ongoing Business quality for each insurance company and product. commissions commissi

  13. Slide 13: Quarterly Performance Trends [Life Insurance Commissions]

    Quarterly Performance Trends [Life Insurance Commissions] Life insurance commissions income (Unit: Millions of yen) 9,487 The business quality support fee decreased 25 8,402 2,307 due to the impact of lower rates 7,907 7,999 27 8,144 19 26 17 7,334 6,953 6,927 2,207 33 2,041 1,846 6,564 23 2,197 6,3

  14. Slide 14: Key KPI Trends [Number of Prospective Policy Customers]

    Key KPI Trends [Number of Prospective Policy Customers (Quarterly)] Number of customers attracted from partner companies and customers attracted on our own (Unit: Number of customers) Appointments from customers attracted on our own and policy transfers, which have high profit margins, 42,553 increa

  15. Slide 15: Key KPI Trends [Number of New Policies/Customers]

    Key KPI Trends [Number of New Policies/Customers (Quarterly)] The number of new policies and the number of customers both exceeded the same period of the previous year in all quarters. Number of new policies Number of new customers (Unit: Number of policies) (Unit: Persons) YoY +23,518 (+10.4%) YoY

  16. Slide 16: Key KPI Trends [Number of Policies in Force]

    Key KPI Trends [Number of Policies in Force (Quarterly)] Number of policies in force Number of existing customers (Unit: Persons) (Unit: Number of policies) Year- The number of policies in force and on-year +85,278 Year- the number of customers both on-year +278,715 change (+14.4%) increased signifi

  17. Slide 17: New Policy Acquisition Flow

    New Policy Acquisition Flow Full-year results for the fiscal year ended November 30, 2024 The number of additional policies from policy transfers increased steadily Self-development Sales employees [Number of prospective policy customers] 163,306 [Net new customers] [Net new policies] [Customers att

  18. Slide 18: Number of Sales Employees and Hires

    Number of Sales Employees and Hires Number of sales employees and hires Number of sales employees (Unit: Persons) Net increase 192 Number of hires (Unit: Persons) ⚫ The number of new hires reached a record high of 681. Although the 2,518 2,462 2,491 number of new hires was lower than the plan due to

  19. Slide 19: Number of Offices

    Number of Offices Targeting a more detailed sales network expansion with the increase in sales Hokkaido area employees. 7 branches 1 store 174 142 branches Hokuriku/Shinetsu Tohoku area area offices 18 branches 2 stores 10 branches nationwide 32 ※ As of November 30, 2024 stores Kinki area Kanto area

  20. Slide 20: Shareholder Returns

    Shareholder Returns Dividend results Dividend policy Shareholder benefits program Dividend payout ratio 45% as a target [Interim] [Year-end] Record date 45 yen per share 47 yen per share We are pleased to present this gift [Commemorative] [Year-end] to our shareholders as a token of May 31 / Novembe

  21. Slide 21: Shareholder Returns: Dividend Forecast for FY Ending November 30, 2025

    Shareholder Returns [Dividend Forecast for the Fiscal Year Ending November 30, 2025] [Dividend Dividend Maintenance payout ratio] Introduced Progressive policy 45% dividend Total 92 yen per share Total 94 yen per share Total 90 yen per share Interim dividend Interim dividend [Results] Commemorative

  22. Slide 22: Achievement of Priority Measures and Targets for the Fiscal Year Ending November 30, 2025

    02 Achievement of Priority Measures for the Fiscal Year Ended November 30, 2024 / Targets of Priority Measures for the Fiscal Year Ending November 30, 2025 Copyright © FP Partner Inc. All Rights Reserved. 22

  23. Slide 23: Earnings Forecast for the Fiscal Year Ending November 30, 2025

    Earnings Forecast for the Fiscal Year Ending November 30, 2025 (Unit: Millions of yen) Fiscal year ended November 30, 2024 Fiscal year ending November 30, 2025 YoY Results Forecast Change Percentage change Net sales 35,617 40,232 4,615 +13.0% Operating profit 5,330 6,130 800 +15.0% Operating margin

  24. Slide 24: Priority Measures (Results) for the Fiscal Year Ended November 30, 2024

    Priority Measures (Results) for the Fiscal Year Ended November 30, 2024 Increase in sales employees Policy transfers Continue to increase the number of sales employees and promote high The number of agents has been decreasing due to the return to the core business, equalization. Respond to the high

  25. Slide 25: Growth Strategy for the Fiscal Year Ending November 30, 2025

    Growth Strategy for the Fiscal Year Ending November 30, 2025 From the three pillars to business growth based on DX and education. Three pillars Based on DX and education Non-life Policy insurance transfers Policy transfers DX Follow-up Education for existing Non-life IFA policies Money insurance Doc

  26. Slide 26: Growth Strategy for the Fiscal Year Ending November 30, 2025

    Growth Strategy for the Fiscal Year Ending November 30, 2025 Image of business growth 1 2 Strengthening the foundation for High standard level through Non-life Policy growth and improving quality education and training through DX (system updates) insurance transfer Improve efficiency of operations I

  27. Slide 27: Growth Strategy: Expansion of Policy Transfer Business

    Growth Strategy for the Fiscal Year Ending November 30, 2025 1 - Expansion of Policy Transfer Business Acquiring new customers Ongoing commissions from transferred 1 policies Profit occurs from first year of transfer Ongoing commissions Policy transfers Immediately … … … 10th year agreed to after tr

  28. Slide 28: Growth Strategy: Expansion of Policy Transfer Business

    Growth Strategy for the Fiscal Year Ending November 30, 2025 1 - Expansion of Policy Transfer Business Number of policy transfers agreed to (Unit: Number of policies) ⚫ The number of inquiries regarding policy transfers increased significantly from 79 companies in the previous 100,000 fiscal year to

  29. Slide 29: Growth Strategy: Policy Transfers and New ANP Trends

    Growth Strategy for the Fiscal Year Ending November 30, 2025 1 - Expansion of Policy Transfer Business Policy transfers and new ANP trends (Unit: Thousands of yen) 1,000,000 1,000,000 ⚫ In the fiscal year ended November 30, 2024, new ANP increased by 390 million yen (+138.5%) YoY, driven primarily b

  30. Slide 30: Growth Strategy: Expansion of Money Doctor Premier Business

    Growth Strategy for the Fiscal Year Ending November 30, 2025 2 - Expansion of Money Doctor Premier Business Covering all major areas in Japan ⚫ Improve recognition of the Money Doctor brand in areas where stores Effect of are located. Store opening and plan for number of store openings ⚫ Increase in

  31. Slide 31: Growth Strategy: Expansion of Money Doctor Premier Business

    Growth Strategy for the Fiscal Year Ending November 30, 2025 2 - Expansion of Money Doctor Premier Business Number of bookings for store visits Annualized new policy premium [ANP based] (Unit: Number of bookings) 7,000 6,15 (Unit: Millions of yen) 3,000 6,000 5,506 0 5,000 4,000 3,541 New policies a

  32. Slide 32: Growth Strategy: Expansion of Non-Life Insurance Business

    Growth Strategy for the Fiscal Year Ending November 30, 2025 3 - Expansion of Non-Life Insurance Business Number of non-life insurance Non-life insurance policy transfers agreed to commissions (Unit: Millions of yen) End of the fiscal year ended November 30, 2024 47,221 1,381 Expansion 1,128 1,151 o

  33. Slide 33: Growth Strategy: Expansion of IFA Business

    Growth Strategy for the Fiscal Year Ending November 30, 2025 4 - Expansion of IFA Business The number of accounts and deposited assets rose steadily, centered on investment savings such as NISA, etc. We will expand the foundation for future growth in recurring income. (Unit: Millions of yen) (Unit:

  34. Slide 34: Expansion of Business Domain - Maximization of LTV

    Expansion of Business Domain - Maximization of LTV Maximize LTV of customers by handling financial products besides insurance LTV Inheritance planning Optimal overall solutions by FP Partner Understanding the current situation Planning and Asset management countermeasures Second life Preparation for

  35. Slide 35: New Business [Financial Literacy Education and Advertising Business]

    New Business [Financial Literacy Education and Advertising Business] Financial literacy education business Through programs and training, we follow each individual’s learning so that they can consider their future plans and ideal lifestyles, and choose financial instruments accordingly. Introduced t

  36. Slide 36: Measures to Achieve Management Conscious of the Cost of Capital and the Stock Price

    03 Measures to Achieve Management That Is Conscious of the Cost of Capital and the Stock Price Copyright © FP Partner Inc. All Rights Reserved. 36

  37. Slide 37: Measures to Achieve Management Conscious of Cost of Capital and Stock Price

    Measures to Achieve Management That Is Conscious of the Cost of Capital and the Stock Price ⚫ ROE is 31.9% and Cost of shareholders’ equity is 12.49% recognized for the fiscal year ended November 30, 2024 Current analysis ⚫ Aim to maintain a high level of ROE that exceeds the cost of equity ⚫ Growth

  38. Slide 38: Current Analysis

    Current Analysis ⚫ The ROE is 31.9% for the fiscal year ended November 30, 2024, significantly exceeding the recognized cost of shareholders’ equity of 12.49%. ⚫ We will continue to aim to maintain a high level of ROE that exceeds the cost of equity. PBR/PER/stock price ROE/cost of capital/net profi

  39. Slide 39: Capital Allocation

    Capital Allocation ⚫ After securing working capital and liquidity, we will make growth investments in areas such as policy transfers, systems (DX), and human capital (hiring and education). ⚫ We will use free cash flows to implement stable shareholder returns that emphasize dividends. ⚫ In addition

  40. Slide 40: Growth Investment

    Growth Investment From the three pillars to business growth based on DX and education. Provide new business opportunities and services derived from core operations Non-life Policy utilizing the customer data platform (CDP) insurance transfers Three pillars of growth. ⚫ Policy transfers DX ⚫ Expansio

  41. Slide 41: Further Strengthen Shareholder Returns

    Further Strengthen Shareholder Returns ⚫ We started dividends from the fiscal year ended November 30, 2023 and we will continue increasing Change in them. We are planning to increase dividends to 94 yen in the fiscal year ending November 30, 2025. shareholder return policy ⚫ To continue actively ret

  42. Slide 42: Incentive Structure/Stock Ownership Plans for Executives and Employees

    Incentive Structure/Stock Ownership Plans to Enhance the Awareness of Corporate Value Enhancement Among Executives and Employees Stock compensation plan Stock ownership plans [transfer restrictions until resignation or retirement] Employees Executives Employees Executives Introduced Introduced Intro

  43. Slide 43: Enhance Dialogue with Investors and IR Activities

    Enhance Dialogue with Investors and IR Activities Number of times held [For institutional investors and analysts] Individual interviews, meetings, etc. Dialogues with 4 times Financial results presentations institutional investors Breakdown of meeting format Breakdown of participants Conference in p

  44. Slide 44: Business Plan

    04 Business Plan Copyright © FP Partner Inc. All Rights Reserved. 44

  45. Slide 45: Business Plan Values

    Business Plan Values [Fiscal Year Ending November 30, 2025 (16th Period) to Fiscal Year Ending November 30, 2027 (18th Period)] Plan has been revised based on the sales and product mix and commission rate for the Background for new 1 second half of the fiscal year ended November 30, 2024. business p

  46. Slide 46: Business Plan Values

    Business Plan Values [Fiscal Year Ending November 30, 2025 (16th Period) to Fiscal Year Ending November 30, 2027 (18th Period)] Operating profit / Net sales Ordinary profit Profit (Unit: Millions of yen) (Unit: Millions of yen) (Unit: Millions of yen) 52,664 11,000 7,000 50,000 10,000 6,150 45,779 9

  47. Slide 47: Business Expansion Measures

    Business Expansion Measures [Fiscal Year Ending November 30, 2025 (16th Period) to Fiscal Year Ending November 30, 2027 (18th Period)] Strengthen sales and back-office systems to meet the expanding needs of customers Improve the effectiveness of past initiatives based on DX and education Strengthen

  48. Slide 48: Future Initiatives

    Future Initiatives Promote DX and education to make proposals that are more closely fitting customers Current state New initiatives Creating opportunities for ⚫ Possible to consult with financial planners who can fulfill customer needs with a meetings by company CDP higher standard customer acquisit

  49. Slide 49: Initiatives to Enhance Financial Literacy

    Initiatives to Enhance Financial Literacy Preschool children Target All generations Target Target Working adults to young students Creating lifelong money plans ⚫ Creating opportunities for children Providing educational while supporting customers to think about money opportunities to help people ⚫

  50. Slide 50: The Social Significance of FP Partner

    The social significance of FP Partner We have established offices in all prefectures. We have created an environment where anyone can consult with a financial planner. We are playing a role in improving financial literacy and supporting asset formation for the public. Copyright © FP Partner Inc. All

  51. Slide 51: Data

    05 Data Copyright © FP Partner Inc. All Rights Reserved. 51

  52. Slide 52: Balance Sheet for the Fiscal Year Ended November 30, 2024

    Balance Sheet for the Fiscal Year Ended November 30, 2024 (Unit: Millions of yen) Change from the end As of November 30, 2023 As of November 30, 2024 Change of the previous year (%) Current assets 14,311 11,369 -2,941 -20.6% Cash and deposits 11,960 8,755 -3,205 -26.8% Non-current assets 4,839 7,156

  53. Slide 53: Key KPIs [Quarterly Cumulative Period]

    Key KPIs [Quarterly Cumulative Period] Fiscal year ended November 30, 2022 Fiscal year ended November 30, 2023 Fiscal year ended November 30, 2024 QonQ Number of Item 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q increase/ decrease Number of 1,023,413 1,076,346 1,131,058 1,189,907 1,240,784 1,323,282 1,387,84

  54. Slide 54: Key KPIs [Quarterly Cumulative Period]

    Key KPIs [Quarterly Cumulative Period] Fiscal year ended November 30, 2022 Fiscal year ended November 30, 2023 Fiscal year ended November 30, 2024 QonQ Number of Item 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q increase/ decrease Number of sales employees 1,890 1,962 2,007 2,014 2,068 2,166 2,215 2,326 2,40

  55. Slide 55: Key KPIs (New Policies and New Customers)

    Key KPIs (New Policies and New Customers) [Quarterly Cumulative Period] Fiscal year ended November 30, Fiscal year ended November 30, 2022 2023 Fiscal year ended November 30, 2024 QonQ Number of Percentage Item 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q increase/ change decrease Number of 47,618 52,933 53,

  56. Slide 56: Appendix

    06 Appendix Copyright © FP Partner Inc. All Rights Reserved. 56

  57. Slide 57: Company Profile

    Company Profile Company name FP Partner Inc. Established December 2009 Representative Tsutomu Kuroki, Representative Director and President Nature of business Insurance agency Address 1-5-3, Koraku, Bunkyo-ku, Tokyo 112-0004 Number of employees 2,781 (as of November 30, 2024, excluding part-time emp

  58. Slide 58: Business Model

    Business Model We sell life and non-life insurance to customers mainly in their 30s and 40s by attracting customers mainly from partner companies, and we sell investment trusts according to their life planning, and we provide free financial planning consultation services throughout Japan. Developmen

  59. Slide 59: Trends in the Number of Insurance Policies and Customers

    Trends in the Number of Insurance Policies and Customers Number of new policies and policies in force Number of customers [new and existing] (Unit: Number of policies) (Unit: Persons) 700,000 676,926 1,735,733 152,525 250,396 591,648 1,457,018 600,000 1,500,000 136,464 1,485,337 226,878 504 ,9 59 50

  60. Slide 60: Our Strengths and Features

    Our Strengths and Features We not only sell insurance, but also provide comprehensive services to meet the needs of our customers. Sale of investment trusts We offer a wide range of services that Comprehensive consulting go beyond insurance. Asset formation and inheritance Services provided are limi

  61. Slide 61: Partner Companies

    Partner Companies Growing the number of customers attracted from Partner companies partner companies while simultaneously aiming to increase the number of policy transfers and customers Attracting customers through FP consultations joint ventures attracted on our own Joint venture Major Results for

  62. Slide 62: Money Doctor Premier New Openings in the Fiscal Year Ended November 30, 2024

    Money Doctor Premier New Openings in the Fiscal Year Ended November 30, 2024 LaLa terrace HARUMI Dai Nagoya Building Aeon Mall Nagoya Aeon Mall Sakai Shibuya Sakura Aeon Mall Odaka FLAG Store Store Dome Mae Store Kitahanada Store Stage Store Store Newly opened stores in the fiscal year ended Novembe

  63. Slide 63: About Our CSR Initiatives

    About Our CSR Initiatives Goalball Special sponsorship of the Japan Goalball Championship as main sponsor In July 2019, based on FP Partner’s Representative Director Kuroki’s desire to grow together, we signed an official partner agreement with the Japan Goalball Association, and since that year, we

  64. Slide 64: Disposition of Funds Raised on Public Listing

    Disposition of Funds Raised on Public Listing (Unit: Thousands of yen) Scheduled for the Amount raised No. Usage Expected impact fiscal year ending [Amount allocated] November 30, 2025 Establishment of a Customer Data Platform 1 Streamlining the approach to customers 199,800 1 [CDP] 2 Uncovering nee

  65. Slide 65: IR Website Information

    IR Website Information The FP Partner TIMES (online shareholder newsletter) includes IR the Top Interview message from Representative Director website Kuroki. We provide extensive IR information. https://fpp.jp/ir/ We also provide answers to questions frequently asked by our Quick shareholders and i

  66. Slide 66: Handling of This Document

    Handling of This Document ⚫ The information contained in this document includes forward-looking statements such as earnings forecasts and business plans. ⚫ Such information is based on information available to the Company at the present time and on certain assumptions that are judged to be reasonabl

  67. Slide 67: Slide 67

FP Partner — FY2024 Earnings Presentation on 6ix