Premium Group Co., Ltd. · TSE:7199
Premium — Q1 FY2025 Earnings Presentation
36 slides from Premium's earnings presentation, Jul 26, 2024
Slide 1: Financial Results Presentation for Q1 of FY Ending March 31, 2025
TSE Prime Section: 7199 Premium Group Co., Ltd. Financial Results Presentation for Q1 of FY Ending March 31, 2025 July 26, 2024 1
Slide 2: Agenda
01 Financial Highlights 02 Summary of Financial Results 03 Finance Segment 04 Automobile Warranty Segment 05 Auto Mobility Segment 06 Car Premium Club 07 Other Progress 08 Appendix Access videos of our financial results presentations on our IR website at https://ir.premium-group.co.jp/en/library/mov
Slide 3: 01 Financial Highlights
01 Financial Highlights 02 Summary of Financial Results 03 Finance Segment 04 Automobile Warranty Segment 05 Auto Mobility Segment 06 Car Premium Club 07 Other Progress 08 Appendix 3
Slide 4: Highlights from Q1 of FY Ending March 31, 2025 (1)
Highlights from Q1 of FY Ending March 31, 2025 (1) • Operating revenue was up 19.9% thanks to the accumulation of loan receivables/automobile warranties • Operating profit was up 33.6% amid the higher operating margin of the three main businesses • Future expected earnings (deferred profit) also up
Slide 5: Highlights from Q1 of FY Ending March 31, 2025 (2)
Highlights from Q1 of FY Ending March 31, 2025 (2) • The new car market fell YoY due to fraud involving the approval of type designations. Used vehicle market is trending sideways • Loan volume continues to grow despite a recoil from the strong performance in FY2024 Q1. • Automobile warranty volume
Slide 6: 02 Summary of Financial Results
01 Financial Highlights 02 Summary of Financial Results 03 Finance Segment 04 Automobile Warranty Segment 05 Auto Mobility Segment 06 Car Premium Club 07 Other Progress 08 Appendix 6
Slide 7: Consolidated Performance
Consolidated Performance (Millions of yen) • Operating revenue was up 19.9% YoY to ¥8,674 million due to the accumulation of loan receivables and automobile warranty balances • Operating profit was up 33.6% YoY to ¥1,823 million and profit before tax was up 33.3% to ¥1,876 million FY24 Q1 FY25 Q1 Yo
Slide 8: Operating Expenses (Breakdown)
Operating Expenses (Breakdown) (Millions of yen) • Despite an increase in expenses due to business expansion, operating expenses remained low at a 16.8% YoY increase compared to a 19.9% increase in operating revenue • While raising base pay above the level of other companies, human capital ROI* is o
Slide 9: Full-Year Performance Outlook
Full-Year Performance Outlook (Millions of yen) • Both operating revenue and profit before tax progressing according to full-year forecast • Quarterly performance set to increase gradually from the continued accumulation of loan receivables/automobile warranties Operating revenue Profit before tax 4
Slide 10: 03 Finance Segment
01 Financial Highlights 02 Summary of Financial Results 03 Finance Segment 04 Automobile Warranty Segment 05 Auto Mobility Segment 06 Car Premium Club 07 Other Progress 08 Appendix 10
Slide 11: Credit Receivables/Loan Receivables
Finance segment Credit Receivables/Loan Receivables (Billions of yen) • Due to the recoil from the rapid increase in volume during FY2024 Q1, when the COVID-19 pandemic ended, loan volume was up only 7.7% YoY, but we continue to increase our market share • Significant growth in loan volume in FY2024
Slide 12: Segment Performance (Finance)
Finance segment Segment Performance (Millions of yen) • Despite the upward trend in interest rates, the credit gross margin*2 remained at a high level after passing on higher interest rates to customers. • As a result of loan balances growing 22.6% YoY, operating revenue, operating profit, and profi
Slide 13: 04 Automobile Warranty Segment
01 Financial Highlights 02 Summary of Financial Results 03 Finance Segment 04 Automobile Warranty Segment 05 Auto Mobility Segment 06 Car Premium Club 07 Other Progress 08 Appendix 13
Slide 14: Total Volume of New Warranties
Automobile warranty segment Total Volume of New Warranties (Billions of yen) • Automobile warranty volume was up 12.5% YoY despite the used vehicle market (unit sales) trending sideways • Actively encouraged network stores to become Car Premium Club members and the increase in volume of our products
Slide 15: Segment Performance (Automobile Warranty)
Automobile warranty segment Segment Performance (Millions of yen) • Conversion of network stores to Car Premium Club has led to growth in our high-margin products (Car Premium warranties) • Continuous cost reduction is achieved by encouraging the use of the company's network garages and increasing t
Slide 16: 05 Auto Mobility Segment
01 Financial Highlights 02 Summary of Financial Results 03 Finance Segment 04 Automobile Warranty Segment 05 Auto Mobility Segment 06 Car Premium Club 07 Other Progress 08 Appendix 16
Slide 17: Segment Performance (Auto Mobility)
Auto mobility segment Segment Performance (Millions of yen) • Entering the third fiscal year since the full-scale rollout of Car Premium Club*, each business has grown steadily, and operating profit has been strong, up 69.4% YoY • Expecting to grow the Auto Mobility segment through expansion of serv
Slide 18: 06 Car Premium Club
01 Financial Highlights 02 Summary of Financial Results 03 Finance Segment 04 Automobile Warranty Segment 05 Auto Mobility Segment 06 Car Premium Club 07 Other Progress 08 Appendix 18
Slide 19: Progress in Memberships
Car Premium Club Progress in Car Premium Club Memberships (Graph unit: companies/stores) • In response to the fraud problem in the used car industry, Car Premium Dealer is carefully selecting and restructuring network stores, focusing on upselling membership levels. • The number of top-level Diamond
Slide 20: 07 Other Progress
01 Financial Highlights 02 Summary of Financial Results 03 Finance Segment 04 Automobile Warranty Segment 05 Auto Mobility Segment 06 Car Premium Club 07 Other Progress 08 Appendix 20
Slide 21: Other Progress
Other Progress (Graph unit: companies/stores) Medium-Term Management Plan (MTP)*1 Progress (Second Year) *1 For details of MTP, see p. 28–29. • In the first year of the MTP, operating revenue reached ¥31.5 billion and profit before income taxes Car Premium Club Memberships totaled ¥6.2 billion, both
Slide 22: 08 Appendix
01 Financial Highlights 02 Summary of Financial Results 03 Finance Segment 04 Automobile Warranty Segment 05 Auto Mobility Segment 06 Car Premium Club 07 Other Progress 08 Appendix 22
Slide 23: Company Profile
Company Profile Name Premium Group Co., Ltd. Securities Code / 7199 / Prime Market of Tokyo Stock Exchange Exchange May 25, 2015 Established Note: 2007: Established Premium Co., Ltd. (Former name: G-ONE Credit Services Co., Ltd.) Head Office The Okura Prestige Tower, 2-10-4 Toranomon, Minato-ku, Tok
Slide 24: Description of Business
Description of Business • Premium Group is an auto mobility company offering customers a vibrant car life alongside our network of car dealers and garages. Business Segment Portfolio by Segment Automobile Auto Mobility Finance 25% Finance Warranty 50% Auto Mobility (FY26) Main business Main business
Slide 25: Our DX Strategy
Our DX Strategy • In approximately one year from formulating our DX strategy, we built our DX initiative platform internally and externally and were recognized as Noteworthy DX Company three years running and became a DX Certified Business Operator in 2022 • Seeking to realize our concept as a platf
Slide 26: Segments in FY2025
Segments in FY2025 • Premium Auto Parts Co., Ltd., which was under the automobile warranty segment, was transferred to the auto mobility segment. • CIFUT Co., Ltd., which was under the auto mobility segment, was transferred to the finance segment. • The Car Premium business model will continue to un
Slide 27: Performance by Segment
Performance by Segment (Millions of yen) • Operating revenue and profit before tax increased over FY2024 as a result of the steady growth of each segment • Auto Mobility segment provided greater share of operating revenue Operating revenue FY25 Q1 Finance Automobile warranty Auto mobility Operating
Slide 28: Summary of New Medium-Term Management Plan ONE & ONLY 2026
Summary of New Medium-Term Management Plan ONE & ONLY 2026 Medium-Term Vision Establishing the Car Premium business model, seeking to become the ONE & ONLY auto mobility company Numerical Targets (FY2026) Profit attributable to Operating revenue Profit before tax owners of parent ROE Market cap ¥44.
Slide 29: Numerical Targets: Management Indicators
Numerical Targets: Management Indicators Profit before tax / Operating revenue (Billions of yen) Profit attributable to owners of parent (Billions of yen) Profit before tax Profit attributable to owners of parent Finance Automobile warranty Mobility Other 66.0 15.3 53.0 12.2 44.0 10.2 10.5 36.0 8.4
Slide 30: Our Actions to Address Changes in the External Environment
(FY23 Q3) Our Actions to Address Changes in the External Environment • Exchange rates: Very small number of transactions in foreign currency • Agilely responding to rising interest rates and inflation Little to no impact on earnings (1) FX fluctuations (3) Rising interest rates Interest rates for fu
Slide 31: (FY24 Q3) Released Car Premium Anshin Shop
(FY24 Q3) Released Car Premium Anshin Shop • Launched Car Premium Anshin Shop, a program that allows customers to access products and services with peace of mind, on Jan. 29, 2024 What is Car Premium Anshin Shop? Details of peace of mind guarantee and services An outlet that provides services that g
Slide 32: Other Indicators
Finance segment Other Indicators Car Premium Dealer Number of sales staff AI credit screening rate Ratio of auto credit*1 Down 0.2 pts YoY Unchanged YoY Down 2.1 pts YoY 41.9% 103 37.2% Intend to continue increasing in Not planning to increase sales Further increase screening the future given the in
Slide 33: BS (Millions of yen)
BS (Millions of yen) FY2024.Q1 FY2024 FY2025.Q1 YoY QoQ (As of June 30, 2023) (As of March 31, 2024) (As of June 30, 2024) Assets Cash and cash equivalents 12,792 21,150 18,267 +42.8% △13.6% Financing receivables 48,233 56,419 58,494 +21.3% +3.7% Other financial assets 6,522 7,524 8,067 +23.7% +7.2%
Slide 34: PL (Millions of yen)
PL (Millions of yen) FY2024.Q1 FY2024.Q4 FY2025.Q1 (April 1 - June 30) YoY QoQ (April 1, 2023 - June 30, 2023) (January 1, 2024 - March 31, 2024) (April 1, 2024 - June 31, 2024) Operating revenue 7,233 8,571 8,674 +19.9% +1.2% Operating expenses 5,868 6,784 6,852 +16.8% +1.0% Operating profit 1,365
Slide 35: PL (Operating revenue/Operating expenses)
PL (Operating revenue/Operating expenses) (Millions of yen) FY2024.Q1 FY2024.Q4 FY2025.Q1 (April 1 - June 30) YoY QoQ (April 1, 2023 - June 30, 2023) (January 1, 2024 - March 31, 2024) (April 1, 2024 - June 31, 2024) Operating revenue Finance income 3,495 3,968 4,145 +18.6% +4.5% Warranty revenue 1,
Slide 36: Forward looking statements
IR information in this material is for providing financial data and economic condition of Premium Group Co., Ltd. (Hereinafter “Company”). However, this information should not announce and guarantee its contents. Statements contained herein that relate to the future operating performance and strateg