Premium Group Co., Ltd. · TSE:7199
Premium — Q3 FY2019 Earnings Presentation
31 slides from Premium's earnings presentation, Feb 14, 2019
Slide 1: Financial Results Explanatory Materials for Q3 of Fiscal Year Ending March 2019
Financial Results Explanatory Materials for the Third Quarter of Fiscal Year Ending March 2019 Premium Group Co., Ltd. (Tokyo Stock Exchange First Section:7199) February 14, 2019
Slide 2: Agenda
1. Financial Summary of the Third Quarter of Fiscal Year Ending March 2019 ・・・ 3 2. Future Growth Strategy ・・・ 13 APPENDIX ・・・ 22 ⃰ Please see the company explanation in the appendix for an overview of our group.
Slide 3: Financial Summary of the Third Quarter of Fiscal Year Ending March 2019
Financial Summary of the Third Quarter of Fiscal Year Ending March 2019 © Premium Group All Rights Reserved. 3
Slide 4: 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 Total volume of new loans for the first new loans 955 three quarters: 95.5 billion JPY Per head (PH) Increase by 21.6% year on year Third quarter alone: 31.3 billion JPY 785 (year-on-year increas
Slide 5: 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 balance 2,348 thee quarters: 234.8 billion JPY Delinquency rate Increase by 20.7% year on year (3 months or more in arrears) Surpassed 230 billion JPY.
Slide 6: 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 20,140 first three quarters: 20,140 First three Increase by 10.5% year on year quarters 18,219 Exceeded 20,000 stores. Number of credit network stor
Slide 7: 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 2,171 first three quarters: 2.17 billion JPY First three quarters Increase by 18.6% year on year Third quarter alone 1,832 Third quarter alone: 740 mi
Slide 8: Third Quarter Financial Highlights (year-on-year comparison)
Third Quarter Financial Highlights First three IFRS quarters (year-on-year comparison) Operating revenue was 7,860 million JPY (year-on-year increase: +17.9%). Due to changes in accounting standards, profit before tax for the first three quarters decreased by 480 million JPY. ⃰ Excluding the abo
Slide 9: Breakdown of Operating Income by Business (PL)
IFRS Breakdown of Operating Income by Business (PL) 7,858 (+17.9%) First three 146 quarters 6,663 (+67.9%) Operating income for the first three 87 1,765 quarters: 7,860 million JPY 5,868 (+15.4%) 36 1,529 Increase of 17.9% year on year 1,351 Third quarter alone: 2,670 million JPY (year-on-year inc
Slide 10: Operating expense (PL) (year-on-year comparison)
Operating expense (PL) First three IFRS quarters (year-on-year comparison) Operating expense totaled 7.26 billion JPY (year-on-year increase: +30.4%) When increase in expenses due to changes in accounting standards is not factored: 6.17 billion JPY (year-on-year increase: +10.8%), maintaining a
Slide 11: Outlook for the Full Fiscal Year
Outlook for the No revision No revisions in projected First three IFRS Full Fiscal Year to earnings dividend payment (85 JPY) quarters Operating revenue achieved 73.9% of the full-year target, largely progressing according to the performance forecast. Changes in accounting standards resulted in
Slide 12: Q3 Topics
Q3 Topics Listed on First Section of Tokyo Decision to issue 2nd series subscription rights to shares with exercise price Stock Exchange amendment clause (subject to exercise (December 25, 2018) restrictions) through third-party allotment Objective Objective Greater credibility and recognition Secur
Slide 13: Future Growth Strategy
Future Growth Strategy © Premium Group All Rights Reserved. 13
Slide 14: Diagram of Future Growth Strategy
Diagram of Future Growth Strategy ① Deepening the core businesses and expanding stable revenue. ② Promotion of new businesses ② Acquiring new sources of revenue and Expansion of diversifying our businesses by promoting peripheral business new business. Discovery of untapped areas Expansion of overse
Slide 15: Investment Strategy for Growth
Investment Strategy for Growth Main fields in need of fundraising for growth We expect to raise a total of approximately 2.89 billion JPY* for: 1. Investment in expanding existing car and peripheral businesses (approx. 1 billion JPY) ② Promotion of new 2. Investment in M&As to expand domestic and in
Slide 16: Uses of Capital Raised
Uses of Capital Raised In order to expand our business areas, we will use capital to expand peripheral businesses, discover untapped areas and promote overseas business while pursuing synergy with our existing businesses. GROW Expansion of NEW Overseas business/ expansion of new Business business ar
Slide 17: Three Strategies for New Business Promotion
Three Strategies for New Business Promotion We will promote new business with the following three strategies: 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
Slide 18: Specific Current Measures (1): Auto Repair Business
GROW Expansion of peripheral businesses UP Specific Current Measures (1) —5.4 Trillion JPY to Develop Auto Repair Business— We are developing a network of maintenance and repair facilities with multiple connections and synergizing it with our existing businesses Under-warranty repair Auto parts purc
Slide 19: Specific Current Measures (2): Shared Domestic-International Warranty Platform
New Overseas business/ expansion of new Business business areas —Building a Shared Domestic-International Specific Current Measures (2) Warranty Business Platform— We are preparing to globalize our warranty business in earnest. ASEAN countries Thailand, where we have a (and some others) warranty bus
Slide 20: Topics Related to Core Business Extension
<Reference> Topics Related to Core Business Extension Share acquisition of warranty company L’Operaio Solutions K. K. We decided on December 17, 2018, to acquire the shares of L’Operaio Solutions K. K., a warranty company that deals mainly with used import vehicles. Paperless transition for cred
Slide 21: Topics Related to Core Business Extension: Warranty Company M&A
<Reference> Topics Related to Core Business Extension —Warranty Company M&A— The following is an explanation of our share acquisition of L’Operaio Solutions K. K. (decided December 17, 2018). Purpose of share acquisition: Share Acquisition Outline No. of shares 1,000 acquired (100% of voting rights,
Slide 22: APPENDIX
Pp APPENDIX Premium
Slide 23: Premium Group Offers Total Support for Life with a Car
Premier Group Offers “Total Support for Life with a Car” Car life businesses are wide and various. Pursuing synergies among our existing business and expanding our business area. GROW Expansion of NEW Overseas business/ expansion of new peripheral business Business business areas UP Exporting Insura
Slide 24: Overview of Premium Group
Overview of Premium Group Other Business 1.3% Maintenance Business Automobile repairs required in the Warranty Business Operating Revenue by warranty business W 22.8% Business Service Overseas Business (Fiscal Year Ending March 2019) Expansion of overseas business 9.06 (mainly in Thailand) Warra
Slide 25: Strengths of Premium Group
Strengths of Premium Group Premium Group caters to various needs of network stores(Note) by providing combined added value based on 3 strengths. Independence × Expertise × Mobility Multiple product lines Auto and finance know-how Nationwide sales network One-stop provision of finance & services for
Slide 26: History
History July Premium Financial Services Co., Ltd. (former 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 Ser
Slide 27: Company Profile
Company Profile Company Name Premium Group Co., Ltd. TSE code / TSE market 7199 / Tokyo Stock Exchange First Section May 25, 2015 Established (Note) In 2007, Premium Financial Services Co., Ltd. (then G-ONE Credit Services Co., Ltd.) was established. Head Office Roppongi First Bldg., 9-9, Roppongi 1
Slide 28: Balance Sheet (BS)
IFRS basis Balance Sheet (BS) (Unit: thousands of yen) FY 2017 FY2018 Q2 FY2019 Q3 FY2019 Year-on-Year Compared with as of March 31, 2017 as of March 31, 2018 As of September 30, 2018 as of December 31, 2018 Change March 31, 2018 Assets Cash and cash equivalents 4,493,889 6,474,571 6,468,710 7,416,5
Slide 29: Statement of Income (PL)
IFRS basis Statement of Income (PL) (Unit: thousands of yen) FY to date First three quarters of FY2018 FY2018 First two quarters of FY2019 First three quarters of FY2019 Year-on-Year Compared with From April 1, 2017 From April 1, 2017 From April 1, 2018 From April 1, 2018 to December 31, 2017 to Mar
Slide 30: Statement of Income (PL)
IFRS basis Statement of Income (PL) (Unit: thousands of yen) Q3 Q3 FY 2018 FY2018 Q2 FY2019 Q3 FY2019 Year-on-Year Compared with From September 30,2017 From April 1, 2017 From July 1, 2018 From September 30, 2018 to December 31, 2017 to March 31, 2018 to September 30, 2018 to December 31, 2018 Chang
Slide 31: Outlines of New Share Subscription Rights Issuance, RS and Share Split
Outlines of New Share Subscription Rights Issuance, RS and Share Split Share Subscription Rights Restricted Stock Issuance Outline Share Split Outline Issuance Outline Total new Type/no. of shares 103,600 of Total shares issued 7,000 (700,000 shares) 6,154,600 subscription rights issued our common s