Aeon Financial Service Co., Ltd. · TSE:8570

Aeon Financial Service — Q1 FY2019 Earnings Presentation

16 slides from Aeon Financial Service's earnings presentation, Aug 9, 2019

  1. Slide 1: First Section of the Tokyo Stock Exchange, Stock Code 8570

    First Section of the Tokyo Stock Exchange Stock Code：8570 AEON Financial Service Co., Ltd. 1

  2. Slide 2: Agenda

    1. Consolidated business outline and results 2. Consolidated results by Segments 3. Policy of initiatives after the 2Q 4. FY2019 Consolidated forecasts AEON Financial Service Co., Ltd. 2

  3. Slide 3: Consolidated business outline and results

    Consolidated business outline and results Domestic Global Credit card ➊ Credit card ➋ (Unit: billions of yen) Installment Housing Installment Personal Shopping sales loan (※1) sales ➌ loans Cash advance Shopping Cash advance Transaction volume 1,381.6 107.3 59.9 116.5 71.2 34.9 31.5 43.0 YoY +9.0％ +

  4. Slide 4: Impact of point-related initiatives

    Impact of point-related initiatives ■AEON Card as the Main Card Transaction Volume in and out of Average Use Per Month AEON Group Stores Billions of yen YoY Number of transactions ■ Outside AEON Group +10％ 350 ■ AEON Group 10 300 250 9.5 200 150 9 100 50 0 0 8.5 Jun 2016 '16年6月 Jun 2017 '17年6月 Jun 2

  5. Slide 5: 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 ※2 Ordinary income 74.7 46.1 46.1 37.4 4.8 19.7 12.8 111.9 YoY +8％ +7％ +7％ +13％ +2％ +15％ +16％ +10％ Change +5.4 +2.9 +2.8 +4.4 +0.09 +2.5 +1.7 +9.

  6. Slide 6: Status of Finance Receivables in Global business

    Status of Finance Receivables in Global business 【Break down of finance receivables in 3 listed companies ( Hong Kong, Thailand and Malaysia) in 1Q 】 Amortization ＜ Topics of the current term ＞ 償却額 Stage 3 ｽﾃｰｼﾞ３ Stage 2 ｽﾃｰｼﾞ２ Stage 1 ｽﾃｰｼﾞ１ NPL ratio NPL比率 amount ・Pace of increase in outstanding （

  7. Slide 7: Consolidated segment results by graph

    Consolidated segment results by graph Consolidated Domestic Global adjustments Operating Profit＋¥0.1bn Operating Profit -¥0.1bn Operating Operating Operating Operating Income Expenses Income Expenses Consolidated ＋¥5.4bn ＋¥5.2bn ＋¥4.4bn ＋¥4.5bn Adjustments -¥0.5bn 【Main factors for income growth】 ■C

  8. 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：¥718.3bn (+¥111.1bn) Cash and deposits 756.9 +112.4 ※ Including holding company Operating Loans 874.2 +23.7 【Operating Loans and Loan and bills

  9. Slide 9: Progress and schedule of system/IT investments

    Progress and schedule of system/IT investments Main initiatives FY2019 Main areas of investments Mobile app: add membership application & payment function Digital Shift Development of new products and expansion of fee business 【To improve quality of products/ services】 Domestic ¥20.0bn Strengthen se

  10. Slide 10: Policy of initiatives after 2Q

    Policy of initiatives after 2Q ■Promotion of further cashless through campaigns ・Tokimeki Point 10x Campaign in the group Scheduled to be held multiple times from July to September ・Up to 20% cashback on card usage ・About twice as many new cardholders registered in July as the same month last year ・

  11. Slide 11: Policy of initiatives after 2Q: AEON WALLET

    Policy of initiatives after 2Q ■Expand ID acquisition and digital membership customer base by issuing credit cards immediately and issuing new cards in smartphone apps AEON Card（Toy・Story Design) AEON WALLET 【 Target customer】 Mass layer of consumption, such as younger generations and family, etc. ※

  12. Slide 12: FY2019 Consolidated forecasts

    FY2019 Consolidated forecasts FY2019 ( from Apr 1. 2019 to Feb 29. 2020) FY2019 Consolidated Forecasts Interim Full term (Reference ※2) ※1 12 Months (Cumulative) (11months) Conversion value Operating income ¥225.0bn ¥430.0bn ¥470.0bn Ordinary profit ¥25.0bn ¥70.0bn ¥73.0bn Net income attributable to

  13. Slide 13: (Reference) FY2019 1Q Results (Hong Kong, Thailand, Malaysia)

    (Reference) FY 2019 1Q Results (Hong Kong, Thailand, Malaysia) FY2018 1Q FY2019 1Q Results YoY Results YoY AEON Revenue 325,828 +5％ 324,853 -0.3％ CREDIT SERVICE Operating income 307,260 +6％ 308,629 +0.4％ (ASIA) (HK$’000) Profit for the period 119,178 +30％ 106,792 -10.4％ AEON Total Revenues 5,016,463

  14. Slide 14: (Reference) FY2019 1Q Results (Hong Kong, Thailand, Malaysia)

    (Reference) FY2019 1Q Results (Hong Kong, Thailand, Malaysia) ■ Consolidated Results of AEON Credit Service (Asia) Co., Ltd. (Unit:Billions of yen) FY2018 1Q FY2019 1Q Exchange rates: HKD 1 Results Results YoY ・FY2018 1Q ：¥ 13.76 ・FY2019 1Q ：¥ 14.12 Operating income 4.4 4.5 +2％ Fiscal period Operati

  15. Slide 15: (Reference) Allowance for Doubtful Accounts and Allowance for Loss on Refund of Interest Received

    (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 1Q FY2019 1Q Allowance for doubtful accounts, balance

  16. Slide 16: 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 — Q1 FY2019 Earnings Presentation on 6ix