Fp Partner, Inc. · TSE:7388

Fp Partner — Q2 FY2023 Earnings Presentation

59 slides from Fp Partner's earnings presentation, Jul 14, 2023

  1. Slide 1: Financial Results Briefing Materials for the 2Q of FY Ending November 30, 2023

    Financial Results Briefing Materials for the 2Q of the Fiscal Year Ending November 30, 2023 FP Partner Inc. July 14, 2023

  2. Slide 2: [Point] Financial results for the six months ended May 31, 2023

    [Point] Financial results for the six months ended May 31, 2023 Results for the first half of the fiscal year ending November 30, 2023 ⚫ Sales and profit increased significantly due to strong sales of savings and investment products. ⚫ Record number of sales employees hired and net increase in numbe

  3. Slide 3: Table of contents

    Table of contents 01 Financial highlights for the six months ended May 31, 2023 02 Progress of priority measures and initiatives for the fiscal year ending November 30, 2023 03 Revision of earnings forecast and dividend policy for the fiscal year ending November 30, 2023 04 Data 05 Appendix Copyrigh

  4. Slide 4: Financial highlights for the six months ended May 31, 2023

    01 Financial highlights for the six months ended May 31, 2023 Copyright © FP Partner Inc. All Rights Reserved. 4

  5. Slide 5: Financial highlights for the six months ended May 31, 2023

    Financial highlights for the six months ended May 31, 2023 ⚫ Continued from 1Q, new contracts and new customers increased due to an increase in the number of sales staff and further improvement in the level of sales employees (high equalization). ⚫ All items showed significant growth year on year, m

  6. Slide 6: Progress rate toward the first half forecast

    Financial highlights for the six months ended May 31, 2023 [Progress rate toward the forecast for the first half] ⚫ All items achieved the earnings forecast for the first half. Results for the six Results forecast for the first months ended half of the fiscal year ending May 31, 2023 November 30, 20

  7. Slide 7: Progress rate toward the full-year forecast

    Financial highlights for the six months ended May 31, 2023 [Progress rate toward the full -year forecast] ⚫ The forecast has been revised in consideration of the current performance because performance was strong against the full-year forecast. Results for the six Results forecast for the fiscal mon

  8. Slide 8: Financial highlights: 2Q results

    Financial highlights for the six months ended May 31, 2023 ⚫ Hiring of sales employees reached a record pace, with 175 hires in the 2Q and 301 hires in the first half of the year. ⚫ Number of prospective policy customers increased to 36,466 (up 2,692 or 8.0%) due to 2Q results continued strong custo

  9. Slide 9: Income statement for the six months ended May 31, 2023

    Income statement for the six months ended May 31, 2023 ⚫ Net sales remained steady due to an increase in new contracts and new customers resulting from an increase in the number of sales employees. ⚫ Profitability improved despite an increase in SG&A expenses due to the expansion of business scale,

  10. Slide 10: Analysis of operating income fluctuations

    Analysis of operating income fluctuations in the six months ended May 31, 2023 ⚫ Due to the increase in net sales, personnel expenses for canvassers (sales employees), a variable cost, also increased. ⚫ Although expenses increased due to the expansion of business scale, the increase in net sales abs

  11. Slide 11: Earnings model [life and non-life insurance]

    Earnings model [life and non -life insurance] Breakdown of commission income and trends The period of commission receipt varies from 5 to 10 years In the case for each insurance company and product. First-year Ongoing Business quality of life commissions commissions support fee There are no ongoing

  12. Slide 12: Quarterly performance trends

    Quarterly performance trends ⚫ The number of life insurance sales increased due to an increase in the number of sales staff. First -year commissions and business quality support fees also increased YoY. ⚫ The number of policies in force increased due to progress in policy transfers through policy as

  13. Slide 13: Key KPI trends [Number of policies/number of customers]

    Key KPI trends [Number of policies/number of customers] Number of new policies and policies in force Number of customers [new and existing] ⚫ Sales volume increased mainly in savings and investment ⚫ New customers increased in line with the increase in the products to meet asset building needs such

  14. Slide 14: New policy acquisition flow

    New policy acquisition flow Results for the 2Q of the fiscal year ending November 30, 2023 [Number of prospective policy customers] An increase in the number of sales employees will be 36,466 the driver of growth in new policies and net sales. [Partner company customer acquisitions] Sales employees

  15. Slide 15: Number of sales employees and hires

    Number of sales employees and hires Number of sales employees and hires Unit: Number of people Unit: Number of people ⚫ Strengthened recruitment system by opening Recruitment & HR Net Development Section in March 2023 increase in 2,500 ⚫ Hiring in the 2Q was the highest ever with 175 new hires due t

  16. Slide 16: Key KPI trends [Company customer acquisitions]

    Key KPI trends [Number of company customer acquisitions (quarterly)] ⚫ The number of company customer acquisitions increased due to a strong increase in the number of sales employees. The Direct Center Section has also started handling fire insurance. Partner company customer acquisitions and in-hou

  17. Slide 17: Key KPI trends [Number of existing customers]

    Key KPI trends [Number of existing customers (quarterly)] Number of existing customers Unit: Number of people YoY +84,665 people change (＋18.3％) 546,868 524,597 504,959 482,884 462,203 442,621 407,193 424,799 389,852 371,987 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q Fiscal year ended November 30, 2021 Fiscal ye

  18. Slide 18: Key KPI trends [Number of new customers]

    Key KPI trends [Number of new customers (quarterly)] Number of new customers Unit: Number of people 125,080 34,026 YoY change 92,467 +3,068 people (＋9.8％) 4Q 23,597 31,673 3Q 22,695 31,394 59,381 34,462 64,706 2Q 24,139 46,175 27,987 30,244 1Q 22,036 Fiscal year ended November 30, 2021 Fiscal year e

  19. Slide 19: Key KPI trends [Number of existing policies]

    Key KPI trends [Number of existing policies (quarterly)] ⚫ Policies-in-force increased due to steady accumulation of new policies in conjunction with an increase in the number of sales employees. ⚫ The transfer of 23,541 policies, including large policy transfers in 1Q, was completed, resulting in a

  20. Slide 20: Key KPI trends [Number of new policies]

    Key KPI trends [Number of new policies (quarterly)] ⚫ In 2Q, sales of savings and investment products were strong to meet asset building needs such as retirement savings. ⚫ The number of sales of foreign currency-denominated lump-sum payment products increased due to the impact of high interest rate

  21. Slide 21: Progress of priority measures and initiatives

    02 Progress of priority measures and initiatives for the fiscal year ending November 30, 2023 Copyright © FP Partner Inc. All Rights Reserved. 21

  22. Slide 22: Priority measures for the fiscal year ending November 30, 2023

    Priority measures for the fiscal year ending November 30, 2023 Increase in sales employees Policy transfers Continue to increase the number of sales employees and promote high The number of agents has been decreasing due to the return to the equalization. core business, change in business type, and

  23. Slide 23: Increase in sales employees

    Increase in sales employees Due to the increase in the number of sales employees and the promotion of high equalization, the number of MDRT registered sales employees is much higher than the average in the life insurance industry, enabling us to provide highly specialized services. Number of the Num

  24. Slide 24: Number of offices

    Number of offices New offices were opened in line with the increase in sales employees. In 2Q, the number of offices increased by 5 from 1Q. (※) 122 15 137 Hokkaido area branches stores Nationwide offices *As of May 31, 2023 6 branches 1 stores Hokuriku/ Shinetsu area Tohoku area Number of offices 8

  25. Slide 25: New growth strategy for the fiscal year ending November 30, 2023

    New growth strategy for the fiscal year ending November 30, 2023 We will develop three Policy transfers pillars that will support future growth. To further accelerate growth, the three pillars will drive future performance starting Money Doctor Non-life insurance from the fiscal year ending November

  26. Slide 26: Expansion of policy transfer business

    Priority initiatives for the fiscal year ending November 30, 2023 (1) Expansion of policy transfer business ⚫ The downward trend in the number of registered agents in Japan continues. Over the past five years, the number has decreased by 10,575 agents (11.6%). ⚫ This is due to factors such as increa

  27. Slide 27: Expansion of policy transfer business: transfers agreed

    Priority initiatives for the fiscal year ending November 30, 2023 (1) Expansion of policy transfer business ⚫ Steady increase in the number of transfer agreements. Agreed with 8 companies in 2Q (6 companies in 1Q). ⚫ The number of inquiries to our website and referrals from insurance companies, etc.

  28. Slide 28: Expansion of Money Doctor Premier business

    Priority initiatives for the fiscal year ending November 30, 2023 (2) Expansion of Money Doctor Premier business Provide free consultations on all money-related issues, including life planning, advice on asset formation, and money for end of life such as retirement funds and inheritance. Hibiya Chan

  29. Slide 29: Covering all major areas in Japan

    Priority initiatives for the fiscal year ending November 30, 2023 (2) Expansion of Money Doctor Premier business Covering all major areas in Japan Effect of store openings Hokkaido area Sapporo NEW SHOP Store opening plan ⚫ Improve recognition of the Money ● Sapporo Tokyu 30 Doctor brand in areas wh

  30. Slide 30: Expansion of Money Doctor Premier business: store visit bookings

    Priority initiatives for the fiscal year ending November 30, 2023 (2) Expansion of Money Doctor Premier business ⚫ The number of bookings for store visits has remained steady in line with the Number of bookings for store visits increase in the number of stores. Unit: Number of bookings 2,000 As of t

  31. Slide 31: Improvement of non-life insurance business performance

    Priority initiatives for the fiscal year ending November 30, 2023 (3) Improvement of non-life insurance business performance Roll out of non-face-to-face Roll out of non-life Cross-selling support sales through the insurance policy transfers Planned Started in Started in through establishment of for

  32. Slide 32: Base growth strategy

    Base growth strategy We will continue with existing growth strategies and aim to further improve business performance. 1 2 3 Strengthening and Roll out of high equalization of Establishment of customer sales employees CDP communication （*） (customer data platform) apps ⚫ Posting of roll plays and da

  33. Slide 33: [Topics] New business: advertising and financial literacy education

    [Topics] New business - Advertising business and financial literacy education business Growth of new highly profitable businesses (besides insurance sales) that contribute to a higher operating margin Advertising business Financial literacy education business Ordered advertisements are displayed on

  34. Slide 34: [Topics] Expansion of products handled

    [Topics] Expansion of products handled In response to the diversification of customers’ coverage needs, we have expanded the number of insurance companies we offer to a total of 41 life and non-life insurance companies, in order to propose a wider variety of products. Life insurance companies [30 co

  35. Slide 35: [Topic] Stock split and expansion of shareholder benefits

    [Topic] Stock split and expansion of shareholder benefits We implemented a 2-for-1 stock split of common stock. Shareholder benefits substantially expanded. Details of shareholder benefits program We are pleased to present this gift to our shareholders as a ① Eligible shareholders token of our appre

  36. Slide 36: Revision of earnings forecasts and dividend policy

    03 Revision of earnings forecasts and dividend policy for the fiscal year ending November 30, 2023 Copyright © FP Partner Inc. All Rights Reserved. 36

  37. Slide 37: Revision of full-year earnings forecast

    Revision of full-year earnings forecast The Company announced an upward revision of its earnings forecast, based on the strong performance in the first half. ⚫ Net sales are expected to be generally in line with the initial full-year forecast, taking into consideration the results for the first half

  38. Slide 38: Revised forecast for the fiscal year ending November 30, 2023

    Revised forecast for the fiscal year ending November 30, 2023 Unit: Millions of yen Fiscal year ending Fiscal year ending Change from Fiscal year ended November 30, 2022 November 30, 2023 November 30, 2023 previous Previous Current forecast Results YoY YoY [B－A] forecast [A] forecast [B] Net sales 2

  39. Slide 39: Commencement of dividend payments (change)

    Commencement of dividend payments (change) The Company has determined that it is possible to return further profits to shareholders, based on the upward revision of the earnings forecast. Background of changes in dividend policy ⚫ Steady growth in the number of existing customers and policies in for

  40. Slide 40: Dividend payout ratio raised and dividend forecast revised upward

    Commencement of dividend payments (change) Dividend payout ratio raised and dividend forecast revised upward Shareholder returns policy Basic dividend policy Dividend forecast for the fiscal year ending November 30, 2023 Changed to Dividend payout ratio 45% Annual dividend 50 yen/share 75 yen/share

  41. Slide 41: Data

    04 Data Copyright © FP Partner Inc. All Rights Reserved. 41

  42. Slide 42: Balance sheet for the 2Q

    Balance sheet for the 2Q of the fiscal year ending November 30, 2023 Unit: Millions of yen Change from the Fiscal year ended 2Q of the fiscal year ending Change end of the November 30, 2022 November 30, 2023 previous year (%) Current assets 10,150 11,727 ＋1,576 ＋15.5% Cash and deposits 8,848 9,732 ＋

  43. Slide 43: Statements of cash flows for the six months ended May 31, 2023

    Statements of cash flows for the six months ended May 31, 2023 Unit: Millions of yen Six months ended May 31, 2022 Six months ended May 31, 2023 Change I Net cash provided by (used in) operating activities 1,323 1,260 (62) II Net cash provided by (used in) investing activities (109) (377) (267) III

  44. Slide 44: Key KPIs for the fiscal year ending November 30, 2023

    Key KPIs for the fiscal year ending November 30, 2023 Fiscal year ending Fiscal year ended November 30, 2022 QonQ November 30, 2023 Year-end Number of 2Q 3Q 4Q 2Q Percentage Item 1Q cumulative 1Q increase/ (cumulative) (cumulative) (cumulative) (cumulative) change total decrease Number of policies i

  45. Slide 45: Key KPIs for the fiscal year ending November 30, 2023 (2)

    Key KPIs for the fiscal year ending November 30, 2023 Fiscal year ending Fiscal year ended November 30, 2022 QonQ November 30, 2023 Number Year-end 2Q 3Q 4Q 2Q of Percentage Item 1Q cumulative 1Q (cumulative) (cumulative) (cumulative) (cumulative) increase/ change total decrease Number of sales 1,89

  46. Slide 46: New policies and new customers (quarterly)

    New policies and new customers for the fiscal year ending November 30, 2023 (quarterly) Fiscal year ending Fiscal year ended November 30, 2022 QonQ November 30, 2023 Number of Year-end Percentage Item 1Q 2Q 3Q 4Q 1Q 2Q increase/ total change decrease Number of new policies 47,618 52,933 53,884 57,57

  47. Slide 47: Appendix

    05 Appendix Copyright © FP Partner Inc. All Rights Reserved. 47

  48. Slide 48: Business concept

    Business concept We always stand by the customer’s side FP Partner Inc. and work with them to create a lifetime Consult with a long-term money plan together. perspective on the future. In addition to life insurance and non-life Our future ideal vision is to insurance, we offer consultations on all a

  49. Slide 49: Company profile

    Company profile Company name FP Partner Inc. Established December 2009 Representative Representative Director and President Tsutomu Kuroki Nature of business Insurance agency Address 1-5-3, Koraku, Bunkyo-ku, Tokyo 112-0004 Number of employees 2,425 (as of May 31, 2023, excluding part-time employees

  50. Slide 50: Business model

    Business model We sell life and non-life insurance to customers mainly in their 30s and 40s by attracting customers mainly from partner companies, and we sell investment trusts according to their life planning, and we provide free financial planning consultation services throughout Japan. Developmen

  51. Slide 51: Partner companies

    Partner companies We are generating a steady stream of Partner companies prospective customers by attracting customers from our partner companies. Attracting customers through joint ventures Number of customers attracted from Solicitation Joint venture in-house customer acquisitions Major _ au Finan

  52. Slide 52: Our strengths and features

    Our strengths and features We not only sell insurance, but also provide comprehensive services to meet the needs of our customers. Comprehensive consulting We offer a wide range of services that go beyond insurance. Improved productivity through the division of labor between customer attraction and

  53. Slide 53: Net sales, ordinary income, and net income [past five fiscal years]

    Net sales, ordinary income, and net income [past five fiscal years] Trends in net sales Unit: Millions of yen 30,000 122.4% 25,605 25,000 120.9% 20,919 20,000 105.1% 122.8% 16,463 17,301 15,000 13,406 Average growth rate over the past 10,000 five years 5,000 17.6% 0 November 2018 November 2019 Novem

  54. Slide 54: Business plan values

    Business plan values [Fiscal year ending November 30, 2023 (14th period) to fiscal year ending November 30, 2025 (16th period)] *This page is a continuation of the announcement made in January 2023. Business plan values will be updated and announced at the time of the announcement of financial resul

  55. Slide 55: Business plan values: expansion measures

    Business plan values [Fiscal year ending November 30, 2023 (14th period) to fiscal year ending November 30, 2025 (16th period)] *This page is a continuation of the announcement made in January 2023. Business plan values w ill be updated and announced at the time of the announcement of financial resu

  56. Slide 56: [Topics] New commercials and increased recognition

    [Topics] Start of broadcast of new commercials and increased recognition In order to further enhance brand power and recognition, we started broadcasting a new commercial for Money Doctor on April 16, 2023. Increased approximately 2.4 Recognition times in three years since the 2.4 times Nationwide b

  57. Slide 57: IR website information

    IR website information We provide our shareholders and investors with extensive IR information. We offer three types of content to help investors Key points deepen their understanding of the Company. Contains the Top Interview, a message from Representative Director and Web President Kuroki, as well

  58. Slide 58: Handling of this document

    Handling of this document ⚫ The information contained in this document includes forward-looking statements such as earnings forecasts and business plans. ⚫ Such information is based on information available to the Company at the present time and on certain assumptions that are judged to be reasonabl

  59. Slide 59: Slide 59

FP Partner — Q2 FY2023 Earnings Presentation on 6ix