Aeon Financial Service Co., Ltd. · TSE:8570
Aeon Financial Service — Q3 FY2019 Earnings Presentation
23 slides from Aeon Financial Service's earnings presentation, Feb 14, 2020
Slide 1: Results for the Third Quarter of FY2019
Results for the Third Quarter of FY2019 February14, 2020 First Section of the Tokyo Stock Exchange Stock Code：8570 AEON Financial Service Co., Ltd. 1
Slide 2: Agenda
1. Consolidated Business Outline and Results 2. Consolidated Results by Segments 3. Initiatives until the 3Q 4. Priority Implementation Matters AEON Financial Service Co., Ltd. 2
Slide 3: Consolidated business outline and results
Consolidated business outline and results Domestic Global Credit card ➊ Credit card (Unit: billions of yen) Installment Housing Installment Personal Shopping sales loan (※1) sales ➋ loans ➌ Cash advance Shopping Cash advance Transaction volume 4,395.8 314.2 182.6 382.8 213.5 103.3 97.1 121.7 YoY 110
Slide 4: Consolidated results by Segments
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 Ordinary income 242.1 150.8 145.3 114.1 14.1 61.7 38.1 356.1 YoY 109％ 106％ 109％ 111％ 98％ 115％ 111％ 110％ Change +20.2 +8.8 +11.4 +11.4 △0
Slide 5: Consolidated segment results by graph
Consolidated segment results by graph Consolidated Domestic Global adjustments Operating Profit-¥0.8bn Operating Profit-¥6.9bn Operating Operating Operating Income Expenses Income Operating ＋¥20.2bn ＋¥21.0bn ＋¥11.4bn Expenses Consolidated Adjustments 【Main factors for income growth】 ＋¥18.4bn -¥1.1bn
Slide 6: Factors that increase loan losses in the Mekong area
：Factors that increase in loan losses in the Mekong area ■The balance of receivables will steadily expand, but the impact of the application of IFRS 9 will increase loan losses. ・ 3Q: Accelerating the pace of increase in 【Changes in the ratio of the balance of operating receivables the balance of fi
Slide 7: Factors that increase loan losses in the Malay area
：Factors that increase in loan losses in the Malay area ■Due to changes in the situation in the previous fiscal year and the current fiscal year, loan losses increased significantly from the same period of the previous year. ＜Topics for current fiscal year＞ 【Changes in the ratio of the balance of op
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 ・Domestic balance：¥ 816.3 bn (+¥209.2bn) *including holding Cash and deposits 864.3 +219.8 company → Increase due to sale of securities and securitization Operat
Slide 9: Centralize domestic funding and expand direct funding
：Changes in the financial structure ■Centralize domestic funding and expand direct funding ・Demonstrate scale benefits through centralized funding in Japan （FY19・Issue of bonds ¥180bn(plan)) ・Shift from indirect funding to direct funding (As a result of the shift from bank borrowing to corporate bon
Slide 10: Initiatives until the 3Q
Initiatives until the 3Q AEON Financial Service Co., Ltd. 8 10
Slide 11: Domestic: ID Acquisition and usage promotion
Domestic: ID Acquisition and usage promotion ■Strengthening the customer base in the Tokyo metropolitan area and for young generations 【Changes in brand awareness】 1Q 2Q 3Q ・The new life campaign was limited to those under 25 years old, and the New Product and Service AEON Card "recognition rate of
Slide 12: Domestic: Effect of each measure
Domestic: Effect of each measure ■Confirm continued use of new members after enrollment ■Reduce shipping costs and environmental impact by making statement web-based 【Status of new cardholders who 【Status of web based statement 】 joined during the up to 20% reduction campaign period (Jul to Sep)】 Po
Slide 13: Domestic: Banking Business
Domestic: Banking Business ■Strengthening mortgage and asset management services Osaka Umeda branch of AEON Bank Introduction of all stores of asset （Opened December 2019） management simulation "Port Navi" ・AEON Bank's unique asset management simulation tool ・more than 60 model portfolios, including
Slide 14: Global: Strengthening customer base with flagship stores and new cards
Global: ■Strengthening customer base by opening flagship stores and issuing new cards opening flagship stores Issuance of new co-branded cards 【Thailand】 Central World Branch 【Thailand】 Tokyo Olympic Card →Introduction of self-terminals →Target a health-conscious customer →In addition to the interio
Slide 15: Progress and schedule of system/IT investments
Progress and schedule of system/IT investments ■Enhanced services such as instant card issuance and WEB itemization in mobile apps ■Promote the development and introduction of RPA utilizing overseas system subsidiaries Investments in FY2019 Main areas of investments Productivity FY2019 Improvement P
Slide 16: Priority Implementation Matters
Priority Implementation Matters AEON Financial Service Co., Ltd. 14 16
Slide 17: Acquisition of shares of Allianz Life Insurance
Domestic: ■Entry into the insurance business Acquisition of shares of Allianz Life Insurance Co., Ltd. through third-party allocation × Will work closely and in Health Regular cooperation with "goods, activities, promotion-type health insurance checks and services" provided by AEON Group companies t
Slide 18: Domestic: Strengthen customer base
Domestic: ■Strengthen customer base 【Sumitomo Real Estate shopping city AEON Card】 ・Sumitomo Real Estate and our first co-branded credit card ・As a discount card that can be used in large-scale commercial complexes, it will lead to the strengthening of the customer base in the Tokyo metropolitan are
Slide 19: FY2019 Consolidated forecasts
FY2019 Consolidated forecasts ■ No change in earnings forecast FY2019 ( from Apr 1. 2019 to Feb 29. 2020) FY2019 Consolidated Forecasts ※1 Full term (Reference ※2) (11months) 12 Months Conversion value Operating income ¥430.0bn ¥470.0bn Ordinary profit ¥70.0bn ¥73.0bn Net income attributable to owne
Slide 20: (Reference) FY2019 2Q Results (Hong Kong, Thailand, Malaysia)
(Reference) FY2019 2Q Results (Hong Kong, Thailand, Malaysia) FY2018 3Q FY2019 3Q Results YoY Results YoY AEON Revenue 979,911 103％ 974,565 98％ CREDIT SERVICE Profit before tax 398,732 120％ 336,630 84％ (ASIA) (HK$’000) Profit for the period 333,487 122％ 278,864 83％ AEON Total Revenues 15,335,291 113
Slide 21: (Reference) FY2019 3Q Results (Hong Kong, Thailand, Malaysia)
(Reference) FY2019 3Q Results (Hong Kong, Thailand, Malaysia) ■ Consolidated Results of AEON Credit Service (Asia) Co., Ltd. (Unit:Billions of yen) FY2018 3Q FY2019 3Q Exchange rates: HKD 1 Results Results YoY ・FY2018 3Q ：¥ 14.09 ・FY2019 3Q ：¥13.94 Operating income 13.8 13.5 98％ Fiscal period Operat
Slide 22: (Reference) Allowance for Doubtful Accounts and 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 FY2018 3Q FY2019 3Q Allowance for doubtful accounts, balance
Slide 23: 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 — Q3 FY2019 Earnings Presentation on 6ix