Aeon Financial Service Co., Ltd. · TSE:8570
Aeon Financial Service — FY2020 Q2 Earnings Presentation
21 slides from Aeon Financial Service's earnings presentation, Oct 7, 2020
Slide 1: FY2020 Second Quarter IR Presentation Material
FY2020 Second Quarter IR Presentation Material October 7, 2020 AEON Financial Service Co., Ltd.
Slide 2: Consolidated results by segments, by area, Main Initiatives
1. Consolidated results by segments 2. Consolidated results by area 3. Main Initiatives AEON Financial Service Co., Ltd.
Slide 3: Consolidated results by segments
1. Consolidated results by segments (Unit：Billions Domestic total Global total Consol. of yen） China Mekong Malay Total ※1 Retail Solutions ※1 Area Area Area ※3 ※2 ※2 Operating revenue 1,617 1,018 918 692 82 382 227 2,306 YoY 100％ 101％ 94％ 92％ 86％ 96％ 89％ 98％ Change +6 +14 △59 △59 △13 △17 △28 △52 Op
Slide 4: Performance progress against the company plan
－Performance progress against the company plan ■The overall volume of transactions in the first half was at the assumed level of the base scenario ■At this time, credit risk has not materialized as much as originally expected Impact on business performance： Positive Negative Consolidated Operating I
Slide 5: Comparison of Quarterly Performance
－Comparison of Quarterly Performance Domestic Global Consolidated Operating Operating Operating Operating Operating Operating Operating Operating Operating （bn） （bn） （bn） revenue expenses profit revenue expenses profit revenue expenses profit 120 120 120 152 100 100 100 Bad debt allowance 貸倒関連費用 Bad
Slide 6: Status of Repayment Grace Measures (Global)
－Status of Repayment Grace Measures (Global) ■With the resumption of billing and the start of consultation, full and partial repayments and re- split agreements are in progress. Repayment Grace The impact period.： Resumption of billing： Collection status of loans to be repaid Overview of Operating M
Slide 7: Changes in the contents of operating receivables (Global)
－Changes in the contents of operating receivables (Global) ■In the first quarter, bad debt allowance in preparation for future risks increased, including repayment grace loans ■ In the second quarter, the pace of increase in bad debt allowance slowed due to the recovery of repayment grace loans in T
Slide 8: Consolidated balance sheet
－ Consolidated balance sheet Consolidated results Change from Topics ※（）:Change from start of FY Results （Unit：Billions of yen） start of FY Cash and deposits 692.4 △70.4 ・Domestic balance：¥645.1bn (-¥70.9bn) *including holding company → Decrease due to demand for mortgages and other funds Operating
Slide 9: Consolidated results by area: Domestic
2. Consolidated results by area ■With the resumption of economic activity, the transaction volume of goods sales has been on a recovery trend since the first quarter. Q1 Q2 Balance of (unit：billion yen） Transaction YoY Transaction YoY operating Increase or volume (Compared to the volume (Compared to
Slide 10: Credit card transaction in Japan
－Credit card transaction in Japan ■Credit card purchase： Until June, economic activity has been on a recovery trend due to the resumption of economic activity, and since July, there has been an impact of the re-expansion of infection and demand for consumption tax hikes in the previous fiscal year ■
Slide 11: AEON Bank Mortgage Handling
－ AEON Bank Mortgage Handling ■Prolonged home time stimulates demand for home purchases and refinancing ■Increase in applications and loan execution via consultation counter and web screening Changes in the amount of mortgages Consultation/ YoY handled Application acceptance status Q1 Q2 1H Last 前年
Slide 12: Main initiatives
Main initiatives AEON Financial Service Co., Ltd.
Slide 13: Domestic business (Strengthening consulting sales)
－ Domestic business (Strengthening consulting sales) ■Develop direct and indirect channels to meet consultation and application needs AEON Bank Consulting counter AEON Bank’s TV consultation desk At the TV consultation desk, expert staff can respond according to the contents of the consultation. [In
Slide 14: Domestic business
－Domestic business ■Promoting indierect and non-contact services and cashless services ■Expand customer base through new cards and measures 1H 2H ・Sumitomo Real Estate Shopping City AEON ・AEON Bank "Online Consultation Service" ・イオン銀行「オンライン相談サービス」 Card Begins Full-scale Recruitment →Started →全国141店舗
Slide 15: Global business (Thailand)
－Global business（Thailand） ■Enclose a high-level customer base through partnerships with leading external companies ■Strengthen online initiatives such as digitizing e-commerce benefits and services 1H 2H ①Promoting partnerships with major retail ②Digital Personal Loans (October) groups (July) → Tar
Slide 16: Global business (Malaysia)
－Global business（Malaysia） ■ Strengthening cashless response within the AEON Group (payment infrastructure, tools) ■ Introduction of products tailored to changes in the economic environment and market needs 1H 2H ①Enhancement of AEON Wallet App ③Efforts to automate the screening （ E-money immediate
Slide 17: FY2020 Consolidated forecasts
FY2020 Consolidated forecasts (Yen) FY2020 Interim YoY Full term YoY Operating revenue 230.6bn 97.8％ 460.0bn 100.6％ 10.0～ Operating profit 7.7bn 31.4％ 15.4～30.7％ 20.0bn 5.0～ Profit attributable to 1.4bn 10.0bn owners of parent 12.3％ 14.6～29.3％ （EPS） （6.86） （23.17 ～46.34） (Yen) Interim Year End Full
Slide 18: (Reference) FY2020 Q1 Results (Hong Kong, Thailand, Malaysia)
(Reference) FY2020 Q1 Results (Hong Kong, Thailand, Malaysia) FY2019 Q2 FY2020 Q2 Results YoY Results YoY AEON Revenue 654,867 100％ 574,460 88％ CREDIT SERVICE (ASIA) Profit before tax 230,371 83％ 181,640 78％ (HK$’000) Profit for the period 190,394 82％ 152,401 80％ AEON Total Revenues 5,663,542 112％ 5
Slide 19: (Reference) FY2020 Q1 Results (Hong Kong, Thailand, Malaysia)
(Reference) FY2020 Q1 Results (Hong Kong, Thailand, Malaysia) ■ Consolidated Results of AEON Credit Service (Asia) Co., Ltd. (Unit:Billions of yen) FY2019 Q2 FY2020 Q2 Results Results YoY Exchange rates: HKD 1 ・FY2019 1H ：¥ 13.96 Operating income 9.1 7.9 87％ ・FY2020 1H ：¥13.82 Operating profit 3.2 2
Slide 20: (Reference) Allowance for Doubtful Accounts and Allowance for Loss on Refund of Interest
(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 FY2019 Q2 FY2020 Q2 Allowance for doubtful accounts, balance
Slide 21: AEON Financial Service Co., Ltd.
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 — FY2020 Q2 Earnings Presentation on 6ix