Aeon Financial Service Co., Ltd. · TSE:8570
Aeon Financial Service — Q1 FY2017 Earnings Presentation
18 slides from Aeon Financial Service's earnings presentation, Aug 8, 2017
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
Slide 2: Consolidated results and business outline
Consolidated results and business outline 1Q １Q （Unit: Billions of yen) Change from Results YoY Change Results start of FY Ordinary income 94.0 +4％ +3.5 No. of cardholders 39.35mil +0.41mil Ordinary No. of cardholders 82.0 +7％ +5.3 (Domestic) 27.14mil +0.22mil expenses No. of active cardholders 16.7
Slide 3: Results by segment
Results by segment Domestic total Global total (Unit：Billions Adjustments Total of yen） ※1 Retail Solutions ※1 China Mekong Malay Area Area Area Ordinary income 64.5 41.0 40.5 28.9 4.7 14.5 9.5 △16.4 94.0 YoY +4％ -1％ +7％ +4％ -3％ +3％ +9％ -1％ +4％ Change +2.6 △0.3 +2.6 +1.0 △0.1 +0.3 +0.8 +0.2 +3.5 Ord
Slide 4: Domestic/Global segment results by graph
Domestic/Global segment results by graph （Ref.） P/L of credit card biz in domestic Domestic Results YoY ・Cashing income +1.1 ・Other loan +0.7 Ordinary income ¥38.6bn +6% ・Revolving/Installment +0.7 ・Card shopping revenue +0.9 Ordinary profit ¥8.0bn +14% payment income ・Installment sales income +0.4
Slide 5: Consolidated balance sheet
Consolidated balance sheet Consolidated results Results Change from Topics ※（）:Change from start of FY （Unit：Billions of yen） start of FY Cash and deposits 467.1 -67.4 ・Domestic balance：¥433.0bn（-¥70.7bn） →increase in loans and securities Loan and bills discounted* 2,870.3 +112.8 ・Domestic balance：¥
Slide 6: Initiatives of Domestic Business Retail Solutions
Initiatives of Domestic Business Sustainable growth of AFS group ＋ Change in external environment → Conversion of business model Structure Change Expansion of asset formation service Strengthen consulting business Retail Solutions Change：・Direct management of Change：Concentrate on merchant In-Store-
Slide 7: Initiatives for Domestic Business: Issuing new co-branded card
Initiatives for Domestic Business Issuing new co-branded card Promotion to increase transaction volume in AEON group and external affiliated merchants Kojima × Big Camera card AEON card （Minions) ＜Privilege＞ ＜ Privilege ＞ ・Reward Kojima pt and ・Reward 10x Tokimeki pt Tokimeki pt on WAON for purchase
Slide 8: Initiatives for Global Business
Initiatives for Global Business Malay Area Philippines Auto-loan business for 3-wheeled taxi Motive：To provide products for unbanked persons and more employment opportunities Target： People rejected from screening due to income and credit Feature：Remote control of engine start/off Technology ：IoT de
Slide 9: Mekong Area (Thailand) Change in interest rate regulations in Sep.1
Mekong Area (Thailand) Change in interest rate regulations in Sep.1 Credit Card Personal Loan ( Unit : THB) Current New Current New More than No change 50K （5X） No change Less than 3x salary （5x） Credit 50K to 30K 5x salary （only for new Limit customers） Less than 1.5x salary 5x salary 1.5x salary (
Slide 10: Progress and Schedule in IT / System investment
Progress and Schedule in IT / System investment Objective Effect‘ Amount Main initiatives from ２Q Amount of investment of in 1Q ・Replace system in call center investment ・Replace internet system Improve ・Next generation credit card system correspondence ・Standardize system in global level （strength
Slide 11: Forecast of Results for FY2017
Forecast of Results for FY2017 ■ Domestic : Continual growth in card shopping transaction volume ■ Global : Recovery of topline, improvement of bad debt allowance and reduce personnel expense Forecast of Results 1H YoY 2H YoY Ordinary income ¥176bn -2.8％ ¥390bn +4.0％ Ordinary profit ¥29bn +5.7％ ¥65b
Slide 12: (Reference) 1Q FY 2017 Results (Hong Kong, Thailand, Malaysia)
(Reference) 1Q FY 2017 Results (Hong Kong, Thailand, Malaysia) FY2016 FY2017 Results YoY Results YoY AEON Total Revenue (※2) 326,690 -1% 324,390 -1% CREDIT SERVICE Profit before tax 89,846 +15% 110,274 +23% (ASIA) Profit for the period attributable to : 73,616 +15% 91,618 +25% (HK$’000) Owners of th
Slide 13: (Reference) 1Q FY 2017 Results (Hong Kong, Thailand, Malaysia)
(Reference) 1Q FY 2017 Results (Hong Kong, Thailand, Malaysia) ■ Consolidated Results of AEON Credit Service (Asia) Co., Ltd. FY 2016 1Q FY 2017 1Q Exchange rates: HKD 1 Results Results YoY ・2016：¥14.46 ・2017：¥14.37 Ordinary income 4.7 4.6 -1％ Fiscal period Ordinary profit 1.2 1.5 +22％ ・2016：Mar. 1～
Slide 14: (Reference) Allowance for Doubtful Accounts and Allowance for 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 FY2016 1Q FY2017 1Q Allowance for doubtful accounts, beginni
Slide 15: (Reference) FY 2017 Business Plan (Domestic)
(Reference) FY 2017 Business Plan (Domestic) FY 2017 1Q FY 2017 Change from Results start of FY Plan YoY Number of cardholders 27.14mil +0.22mil 28.00mil +1.08mil Results YoY Plan YoY Card shopping transaction volume 1,179.2bn +11.2％ 5,000.0bn +10.7％ Change from Results start of FY Plan YoY Balance
Slide 16: (Reference) Definition of Adjustments based on presentation format
(Reference) Definition of “Adjustments” based on presentation format Brief Report Retail Solutions China Mekong Malay Adjustment Total amounts Includes HQ/Shared function companies, transactions between business segments FACT BOOK ≪Operating Segment Performance≫ P.6 (FY2017 1Q) Consoli- Domestic Glo
Slide 17: (Reference) Our Vision: Asia's No.1 Retail Financial Service Company
(Reference) Our Vision: “Asia’s No.1 Retail Financial Service Company” MISSION: Enrich daily lives of customers by providing financial services PROCESS: Contributing to our customers at all life stages and lifestyles Using data-based marketing for our Asian subsidiaries Providing group synergies by
Slide 18: Forward-looking statements notice
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 FY2017 Earnings Presentation on 6ix