Aeon Financial Service Co., Ltd. · TSE:8570
Aeon Financial Service — Q1 FY2018 Earnings Presentation
16 slides from Aeon Financial Service's earnings presentation, Aug 20, 2018
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: Consolidated results and business outline
Consolidated results and business outline 1Q １Q （Unit: Billions of yen) Change from Results YoY Change Results start of FY Ordinary income 102.3 +9％ +8.3 No. of cardholders 41.12mil +0.48mil No. of cardholders (Domestic) 27.95mil +0.20mil Ordinary No. of active cardholders expenses 88.1 +7％ +6.0 (Do
Slide 3: Results by segment
Results by segment Domestic total Global total (Unit：Billions ※ ※ China Mekong Malay Adjustments Total of yen） Retail Solutions Area Area Area Ordinary income 69.2 43.3 43.2 33.0 4.7 17.2 11.0 -17.2 102.3 YoY +7% +6% +7% +14% +0% +18% +15% +5% +9% Change +4.7 -2.3 +2.7 +4.0 +0 +2.6 +1.4 -0.8 +8.3 Or
Slide 4: Domestic/Global segment results by graph
Domestic/Global segment results by graph Global Consolidated Domestic adjustments Ordinary Profit +¥0.1bn Ordinary Profit +¥2.1bn Ordinary Expenses Ordinary Income Ordinary Expenses Consolidated Ordinary Income +¥1.8bn adjustments +¥4.7bn +¥4.5bn +¥4.0bn - ¥0.1bn Ordinary Main reasons for income gro
Slide 5: Consolidated balance sheet
Consolidated balance sheet Consolidated results Results Change from Topics ※（）:Change from start of FY （Unit：Billions of yen） start of FY Cash and deposits 576.4 -74.0 ・Domestic balance：¥537.2bn（-¥74.3bn） →reduction attributed to increase in finance receivables Loan and bills discounted* 2,391.1 +11
Slide 6: Implementation of IFRS 9: Change in calculation method for allowance for doubtful accounts
Implementation of IFRS 9: Change in calculation method for allowance for doubtful accounts ■ IFRS 9 implemented in key overseas subsidiaries since 1Q with respect to finance receivables in the consolidated earnings results ■ Shift from ‘incurred loss’ model to ‘expected credit loss’ (ECL) impairment
Slide 7: Domestic business
Domestic business ■Providing products/services targeting the younger generation/easy-to-approach potential asset management service users ■New privileges to encourage further use ・For the next generation about to start using financial service ・AEON Card (Minions) ・New co-branded card to be released
Slide 8: Global business
Global business ■Expanding target to middle class and upper class ■New services targeted at the younger generation Mekong Area Thailand： ①New “AEON Royal Orchid Plus World” co-branded card with Thai Airways: Targets customers with higher than average monthly income, offers special privileges such as
Slide 9: Progress and schedule of system/IT investments
Progress and schedule of system/IT investments Main initiatives FY2018 Main areas of investments Mobile app: Addition of asset management and payment function Keywords: Convenient Digital Shift Expansion of fee business and development of new products 【To improve quality of products/ services】 Domes
Slide 10: Forecast of Results for FY2018
Forecast of Results for FY2018 ■ Evolution of AFS ecosystem with the construction of a strong customer base and business foundation ■ Revamp business model in view of improving receivables portfolio and profit structure FY2018 Forecast YoY Ordinary income ¥440.0bn +7.9％ Ordinary profit ¥72.5bn +10.3
Slide 11: (Reference) FY 2018 1Q Results (Hong Kong, Thailand, Malaysia)
(Reference) FY 2018 1Q Results (Hong Kong, Thailand, Malaysia) FY2017 1Q FY2018 1Q Results YoY Results YoY AEON Total Revenue (※2) 324,390 -1% 341,873 +5% CREDIT SERVICE Profit before tax 110,274 +23% 140,827 +28% (ASIA) Profit for the period attributable to : 91,618 +25% 119,178 +30% (HK$’000) Owne
Slide 12: (Reference) FY 2018 1Q Results (Hong Kong, Thailand, Malaysia)
(Reference) FY 2018 1Q Results (Hong Kong, Thailand, Malaysia) ■ Consolidated Results of AEON Credit Service (Asia) Co., Ltd. FY 2017 1Q FY 2018 1Q Exchange rate: HKD 1 ・2017：¥14.37 Results Results YoY ・2018：¥13.76 Ordinary income 4.6 4.7 +1％ Fiscal period Ordinary profit 1.5 1.9 +22％ ・2017：Mar. 1～M
Slide 13: (Reference) Allowance for Doubtful Accounts and Allowance for Loss on Refund of Interest Received by Segment
(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 FY2017 1Q FY2018 1Q Allowance for doubtful accounts, beginni
Slide 14: (Reference) FY2018 Business Plan (Domestic)
(Reference) FY2018 Business Plan (Domestic) FY 2018 1Q FY 2018 Change from Results start of FY Plan YoY Number of cardholders 27.95mil +0.2mil 28.80mil +1.05mil Results YoY Plan YoY Card shopping transaction volume ¥1,267.3bn +7.5％ ¥5,500.0bn +11.1％ Change from Results start of FY Plan YoY Balance o
Slide 15: (Reference) Our Vision: Asia's No. 1 Retail Financial Service Company
(Reference) Our Vision “Asia’s No. 1 Retail Financial Service Company ■ Aim: To build the most recognized ecosystem in Asia and promote rapid expansion of customer base by 2025 ■ Increasing transactions volume, provision of low-cost & low-risk products through data analysis AFS Ecosystem Other ecosy
Slide 16: Forward-looking statements
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 — Q1 FY2018 Earnings Presentation on 6ix