Slide 1: Financial Results Explanatory Materials for Q2 Fiscal Year Ending March 2019
Financial Results Explanatory Materials for the Second Quarter of Fiscal Year Ending March 2019 Premium Group Co., Ltd. (Tokyo Stock Exchange Second Section:7199) November 14, 2018
Slide 2: Contents
1. About Premium Group ・・・ 3 2. Financial Summary of the Second Quarter of Fiscal Year Ending March 2019 ・・・ 19 3. Business Policy and Progress ・・・ 28 APPENDIX ・・・ 38
Slide 3: About Premium Group
About Premium Group © Premium Group All Rights Reserved. 3
Slide 4: Company Profile
Company Profile Company Name Premium Group Co., Ltd. TSE code / TSE market 7199 / Tokyo Stock Exchange Second Section May 25, 2015 Established (Note) In 2007, Premium Financial Services Co., Ltd. (then G-ONE Credit Services Co., Ltd.) was established. (Note) Started its business as a second-tier sub
Slide 5: Overview of Premium Group
Overview of Premium Group Premium Group is comprised of companies providing finance & services focused on credit and warranty (Note) Credit is a service offering customers the option to Warranty is a service offering customers coverage have charges incurred upon purchase of goods or for the cost of
Slide 6: Consolidated Subsidiaries
Engaged in Auto-Related Services as a Group of 11 Companies in Japan and Overseas Premium Financial Services Credit business and warranty business focused 100.0% Co., Ltd. on automotive credit financing Consolidated Subsidiaries Auto maintenance and repair, bodywork and 100.0% PAS Co., Ltd. paintwor
Slide 7: President and CEO, Leading Our Company
President and CEO, Leading Our Company Since Its Foundation President and CEO Yohichi Shibata Founder Finance Auto knowledge knowledge 1982 April Joined Satoshoji Corp. 1985 April Joined APLUS Co., Ltd. (then Daishinpan Inc.) 2003 December Joined IDOM Inc. (then Gulliver International Co., Ltd.) Apr
Slide 8: Business Portfolio
Business Portfolio Other Business 1.5% Maintenance Business Automobile repairs required in the warranty business Overseas Business Overseas business expansion (mainly in Thailand) Credit Finance Warranty Business Business Operating Revenue by W 22.3% C 76.3% Business Service (First two quarters
Slide 9: Loan Financing
Most of the Receivables Balance Consists of Collaborative Loan Financing 93.3% 211.55 billion JPY Collaborative Loans Collaborative Loan Financing (211.55 billion JPY) Receivables of loans by partner financial institutions. PFS provides joint and several guarantees and is involved in Credit cr
Slide 10: Overview of Automotive Credit Financing Business
Overview of Automotive Credit Financing Business (Advantageous Cash Position) Although collaborative loans are funded mainly by banks, PFS provides joint and several guarantees and is involved in sales, credit examination, and credit collection. Overview of B-to-B-to-C Business Collaborative Loan
Slide 11: Our Revenue from Credit Commissions
Our Revenue from Credit Commissions (Illustrative Example) Credit Finance Commissions Paid by Auto Purchaser (1) Referral Fee Payment to Net Interest Network Stores Fixed Rate PFS Operating Revenue (2) Bank Borrowing Rate Fixed Rate PFS Profit Insurance Premium (Note) Each contract has its own fixed
Slide 12: Delinquency Rate Decreasing Through Customer Follow-Up
Delinquency Rate Decreasing Through Customer Follow-Up Delinquency Rate Trends (most recent 6 years) Delinquency rate (3 months or more in arrears) (％) 1.8 1.6 1.4 1.2 1 0.84% 0.8 0.6 0.4 0.2 0 13.3 14.3 15.3 16.3 17.3 18.3 (Note) “Delinquency rate” refers to the sum total of the amount of receivabl
Slide 13: Warranty Business Provides Both Our Company Brand and OEM Products
Warranty Business Provides Both Our Company Brand and OEM Products The cumulative total number of warranty contract cars (since April 2010) is approximately 400,000 units and high-accuracy product design and pricing are achieved by utilizing repair big data. Warranty covers up to 395 auto parts an
Slide 14: Overview of Warranty Business
Overview of Warranty Business (Advantageous Cash Position) Product development and appropriate pricing based on extensive repair big data B-to-B-to-C Business ③ Pay charges PFS Co., Ltd. Network Stores ① Sell car ② Pay ④ Provide warranty Sell warranty charges services ⑦ Pay repair Repair Data cost
Slide 15: Strengths of Premium Group
Strengths of Premium Group Premium Group caters to the various needs of network stores(Note) by providing combined added value based on 3 strengths. Independence × Expertise × Mobility Combined product lineup Auto and finance know-how Nationwide sales network One-stop provision of finance & services
Slide 16: "MULTI ACTIVE" Strategy
“MULTI ACTIVE” Strategy “MULTI ACTIVE” Strategy Strategy to build lasting business Credit Expertise Cross-selling relationships through expansion of Diversion business contacts by providing Credit multiple services to auto business partners while leveraging synergy with existing business. Car Leasin
Slide 17: Market Size
Market Size Auto-related market size is extremely large. In such a giant market, aiming to create new business while deepening core business. Car maintenance Automotive credit and repair market Credit grant amount: Approximately Approximately 5.3 4.6 Used car retail market trillion JPY trillion JPY*
Slide 18: Overseas Business Initiatives
Overseas Business Initiatives Preparing warranty business expansion in collaboration with a local company. Thailand Established our own maintenance and repair facility “FIX MAN” in 4 locations, forming a maintenance and repair network centering on Bangkok. Promoting the automotive credit finan
Slide 19: Financial Summary of the Second Quarter of Fiscal Year Ending March 2019
Financial Summary of the Second Quarter of Fiscal Year Ending March 2019 © Premium Group All Rights Reserved. 19
Slide 20: Credit Finance Business: Change in Total Volume of New Loans
Credit Finance Business: Change in Total Volume of New Loans Unit: hundred million yen Total volume of new loans 642 Total volume of new loans for the first two quarters: 64.2 billion JPY Per head (PH) Growth of 120.7% on a year-on-year basis 532 Second quarter alone: 32.7 billion JPY (year-on-yea
Slide 21: Credit Finance Business: Change in Credit Receivables Balance
Credit Finance Business: Change in Credit Receivables Balance Unit: hundred million yen, ％ Credit receivables Credit receivables balance for the first two balance 2,267 quarters: 226.7 billion JPY Delinquency rate Growth of 120.0% on a year-on-year basis (3 months or more in arrears) Surpassed 220
Slide 22: Credit Finance Business: Number of Network Stores
Credit Finance Business: Number of Network Stores Unit: Number of Number of companies Number of credit network stores for the credit network stores 19,357 first two quarters: 19,357 First two Growth of 109.6% on a year-on-year basis quarters 17,667 Number of credit network stores is steadily incre
Slide 23: Warranty Business: Change in Total Volume of New Warranties
Warranty Business: Change in Total Volume of New Warranties Unit: million yen Total volume of Total volume of new warranties for the new warranties 1,439 first two quarters: 1,439 million JPY First two quarters Growth of 118.6% on a year-on-year basis Second quarter alone Second quarter alone: 704
Slide 24: Second Quarter Financial Highlights
Second Quarter Financial Highlights First two IFRS quarters (year-on-year comparison) Operating revenue was 5,183 million JPY (year-on-year change: 116.7%). Due to changes in accounting standards, profit before tax for first the first two quarters decreased by 190 million JPY. ⃰ Excluding the ab
Slide 25: Breakdown of Operating Income by Business (PL)
IFRS Breakdown of Operating Income by Business (PL) First two Year-on-year change is shown in parentheses 5,183 (116.7%) 76 (133.7%) quarters Operating income for the first two quarters: 4,443 57 1,155 5,183 million JPY 3,908 (114.9%) 15 Growth of 116.7% on a year-on-year basis 1,005 886 Second qu
Slide 26: Operating expense (PL) year-on-year comparison
Operating expense (PL) First two IFRS quarters (year-on-year comparison) Operating expense totaled 4.74 billion JPY (year-on-year change: 131.2%) When increase in expenses due to changes in accounting standards is not factored: 3.96 billion JPY (year-on-year change: 109.7%), maintaining a level
Slide 27: Outlook for the Full Fiscal Year
Outlook for the No revision No revisions in projected First two IFRS quarters Full Fiscal Year to earnings dividend payment (85 JPY) Operating revenue resulted in an amount exceeding the forecast for the first two quarters. (+0.48 billion JPY, 100.9%) Profit before tax also resulted in an amount
Slide 28: Business Policy and Progress
Business Policy and Progress © Premium Group All Rights Reserved. 28
Slide 29: Expansion of Business Area to Car-Related Businesses
Expansion of Business Area to Car-Related Businesses Car life businesses are wide and various. Pursuing synergies with our existing businesses and expanding our business area. Advertising companies Purchasing companies Insurance Transport company companies Auctioning companies NEW New business area
Slide 30: Business Development for Future Growth
Business Development for Future Growth ① Deepening the core businesses and expanding stable revenue. ② Expanding overseas and peripheral businesses, acquiring new sources of revenue, and ② Promotion of new diversifying our businesses. businesses Expansion of overseas business Expansion of peripheral
Slide 31: Projection and Progress for FY Ending March 2019
Projection and Progress for FY Ending March 2019 Both core businesses and new businesses grew in line with projection ① Both core businesses maintained double-digit revenue growth Credit finance ✓ Year-on-year change in total volume of new loans: 120.7% Deepening business ✓ Year-on-year change in to
Slide 32: Three Strategies for Future Growth
Three Strategies for Future Growth Promoting all-round support for “life with a car” ① Synergy with existing businesses, ② Know-how possessed by our group, and ③ Speed These will be comprehensively taken into consideration in our adoption of the following three strategies: In-house M＆A Collaboration
Slide 33: Topics: Acquisition of SoftPlanner
In-house Topics: Acquisition of SoftPlanner M＆A Collaboration development Profile of SoftPlanner To further promote the “MULTI ACTIVE” strategy, a resolution was passed on September 14, 2018 to acquire an 80% stake in SoftPlanner Co., Ltd. (stock transfer on October 15, 2018). SoftPlanner is schedul
Slide 34: Topics: Acquisition of SoftPlanner
In-house Topics: Acquisition of SoftPlanner M＆A Collaboration development Purpose of acquisition and future growth strategies Entry into auto maintenance and repair industry • The auto maintenance and repair industry is a large market, valued at 5.3 trillion JPY and with approximately 75,000 players
Slide 35: Topics: Collaboration with Companies
In-house M＆A Collaboration Topics: Collaboration with Companies development Further expansion and improvement of network store support (= promotion of “MULTI ACTIVE”) Revitalization of used car distribution (UcarPAC) Becoming our group’s network store means access to UcarPAC’s services, enabling the
Slide 36: Commencement of Auto Leasing Business Targeting Individuals
Commencement of Auto Leasing M＆A Collaboration In-house Business Targeting Individuals development Catching up with social trends 〈from ownership to use〉 • Demand for auto leasing for individuals is increasing each year, and is forecast to increase to 936,000 units in fiscal 2022, or 3.6 times that
Slide 37: Key Publicity
Key Publicity 2018 Featured on a list of stocks not listed on the First Section of the Tokyo Stock Exchange and invested in July 22 by GPIF found in an article published in the Nihon Keizai Shimbun discussing the expansion of investment into small- and mid-cap stocks by the world’s public pension fu
Slide 38: APPENDIX
Pp APPENDIX Premium
Slide 39: Balance Sheet (BS)
IFRS basis Balance Sheet (BS) (Unit: thousands of yen) FY 2017 FY2018 Q1 FY2019 Q2 FY2019 Year-on-Year Compared with as of March 31, 2017 as of March 31, 2018 As of June 30, 2018 as of September 30, 2018 Change March 31, 2018 Assets Cash and cash equivalents 5,340,130 6,474,571 6,093,961 6,468,710 1
Slide 40: Statement of Income (PL)
IFRS basis Statement of Income (PL) (Unit: thousands of yen) FY to date First two quarters of First two quarters of FY2018 Q1 FY2019 FY2018 FY2019 Year-on-Year Compared with From April 1, 2017 From April 1, 2018 From April 1, 2017 From April 1, 2018 Change March 31, 2018 to March 31, 2018 to June 30
Slide 41: Statement of Income (PL)
IFRS basis Statement of Income (PL) (Unit: thousands of yen) Q2 Q2 FY 2018 FY2018 Q1 FY2019 Q2 FY2019 Year-on-Year Compared with From July 1, 2017 From April 1, 2017 From April 1, 2018 From July 1, 2018 to September 30, 2017 to March 31, 2018 to June 30, 2018 to September 30, 2018 Change March 31, 2
Slide 42: History
History July Premium Financial Services Co., Ltd.(then G-ONE Credit Services Co., Ltd.) was established. 2007 Established as a subsidiary of G-ONE Financial Services Co., Ltd., which was a second-tier subsidiary of Gulliver International Co., Ltd. July Shareholder changed from G-ONE Financial Servic