Premium Group Co., Ltd. · TSE:7199
Premium — Q3 FY2024 Earnings Presentation
38 slides from Premium's earnings presentation, Jan 31, 2024
Slide 1: Financial Results Presentation for Q3 of FY Ending March 31, 2024
TSE Prime Section: 7199 Premium Group Co., Ltd. Financial Results Presentation for Q3 of FY Ending March 31, 2024 January 31, 2024
Slide 2: Agenda
1. Financial Highlights 2. Summary of Financial Results 3. Car Premium 4. Finance Segment 5. Automobile Warranty Segment 6. Auto Mobility Segment 7. Appendix Access videos of our financial results presentations on our IR website at https://ir.premium-group.co.jp/en/library/movie.html 2
Slide 3: 1. Financial Highlights
> N-JL=P = 11. Financial Highlights
Slide 4: Highlights from Q3 of FY Ending March 31, 2024 (1)
Highlights from Q3 of FY Ending March 31, 2024 (1) ◼ Used vehicle prices remain elevated The number of used passenger vehicles registered has increased YoY since April 2023 ◼ Credit finance and automobile warranty both continued to record double-digit operating top line (volume) growth ◼ Continuing
Slide 5: Highlights from Q3 of FY Ending March 31, 2024 (2)
Highlights from Q3 of FY Ending March 31, 2024 (2) ◼ Each business segment is growing steadily, with both operating revenue and operating profit posting double-digit growth ◼ Future expected earnings (deferred profit) also grew steadily. Stable earnings in the next FY and beyond to be stocked on BS
Slide 6: Highlights from Q3 of FY Ending March 31, 2024 (3)
Highlights from Q3 of FY Ending March 31, 2024 (3) Progress of Medium-Term Management Plan, ONE & ONLY 2026 Car Premium Club Memberships Promoting initiatives to establish the Car Premium business model Car Premium Dealer Progress: 49.3% ◼ Expanding services for Car Premium Club*1 members 2,466 FY20
Slide 7: 2. Summary of Financial Results
2. Summary of Financial Results 7
Slide 8: Consolidated Performance
Consolidated Performance (Millions of yen) ◼ Operating revenue rose 24.0% YoY to ¥22,975 million owing to the strong growth of each segment ◼ Operating profit was up 24.7% YoY to ¥4,408 million and profit before tax was up 24.2% YoY when excluding one-off losses FY23 Q3 FY24 Q3 YoY change Operating
Slide 9: Operating Expenses (Breakdown)
Operating Expenses (Breakdown) (Millions of yen) ◼ Although costs have increased as sales have grown and personnel expenses have risen, operating expenses remain below the growth of operating revenue FY23 Q3 Operating expenses FY24 Q3 Operating expenses ¥14,998 million ¥18,567 million (up 23.8% YoY)
Slide 10: Full-Year Performance Outlook
Full-Year Performance Outlook (Millions of yen) ◼ Operating revenue and profit before tax trending strongly in terms of progress heading into end of the fiscal year ◼ Quarterly performance set to increase gradually from the further accumulation of loan receivables, automobile warranties, and Car Pre
Slide 11: 3. Car Premium
43 n-SL=P 33. Car Premium
Slide 12: Car Premium Club Memberships
Car Premium Car Premium Club Memberships (Graph unit: companies/stores) ◼ Steadily building out Car Premium Club*1, a paid membership organization for car dealers and maintenance facilities ◼ Intending to steadily expand services and release Car Premium Anshin Shop (on Jan. 29, 2024) Note: For detai
Slide 13: Released Car Premium Anshin Shop
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 guarantee
Slide 14: 4. Finance Segment
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Slide 15: Total Volume of New Loans
Finance segment Total Volume of New Loans (Graph unit: billions of yen, %) ◼ Used car market recovered only slightly, but our Car Premium strategy has been a success →Volume was up 29.4% and Auto PH held at over ¥200 million. Will continue to promote Car Premium strategy. * Please see page 30 for de
Slide 16: Loan Receivables
Finance segment Loan Receivables (Billions of yen) ◼ Loan receivables also grew, up 25.6% YoY ◼ Delinquency rate will remain stable at a low level ◼ Bolster headcount, DX measures (auto calling), collaborate with servicer subsidiary, and increase collection of delinquent receivables 599.2 Loan Q3 YT
Slide 17: Other Indicators
Finance segment Other Indicators ◼ Completed revisions to membership fee of Car Premium Club*1 and now re-focusing on acquiring new members ◼ Not planning to increase sales staff significantly but rising PH (establishing mechanisms and making sales activities more efficient) Car Premium Dealer auto
Slide 18: Segment Performance
Finance segment Segment Performance (Millions of yen) ◼ The core credit finance business is seeing steady growth in both sales and profits ◼ Continuing to pass on higher interest rates in our own financing products. Credit finance gross profit margin*1 remains at a high level. ◼ Profit before tax ex
Slide 19: 5. Automobile Warranty Segment
5. Automobile Warranty Segment 19
Slide 20: Total Volume of New Warranties
Automobile warranty segment Total Volume of New Warranties (Graph unit: millions of yen) ◼ Automobile warranty volume up 18.3% YoY despite the used vehicle market recovering only slightly ◼ Volume of products developed in-house continued to grow, up 33.7% YoY ◼ Aiming to increase volume of warranty
Slide 21: Segment Performance
Automobile warranty segment Segment Performance (Millions of yen) ◼ Revenue grew steadily, underpinned by proactive sales activities in each business ◼ Cost of sales ratio gradually declining thanks to ongoing cost reduction activities, which has led to increased gross profit margin Q3 automobile wa
Slide 22: 6. Auto Mobility Segment
43 Ni-JL=P C6. Auto Mobility Segment 22
Slide 23: Segment Performance
Auto mobility segment Segment Performance (Millions of yen) ◼ Focused on developing services for Car Premium Club*1 and creating new businesses. Increased largely in unison with each service FY23 Q3 FY24 Q3 YoY change Operating revenue 2,493 4,313 +73.0% Car Premium Club*1 (Of which, Car Premium) 56
Slide 24: 7. Appendix
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Slide 25: Company Profile
Company Profile Name Premium Group Co., Ltd. Securities Code / Exchange 7199 / Prime Market of Tokyo Stock 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 26: 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 Auto Mobility 25% Finance Automobile Warranty Finance 50% Auto Mobility (FY2026) ▷Main business ▷Main busi
Slide 27: Performance by Segment
Performance by Segment (Millions of yen) ◼ Each segment steadily recording operating revenue ◼ Auto mobility and Car Premium segments provided greater share of operating revenue Operating revenue FY24 Q3 Finance Automobile warranty Auto mobility Operating Profit before tax revenue (Of which, Car Pre
Slide 28: 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 two straight years in 2022 and 2023 and became a DX Certified Business Operator in 2022 ◼ Seeking to realize our co
Slide 29: (FY24 Q2) Initiatives for Sustainable Growth
(FY24 Q2) Initiatives for Sustainable Growth Publication of Integrated Report 2023 ◼ Released first integrated report (October 2023) after the launch of the new medium-term management plan ◼ Promotion of ethical practices in the used car industry (Message from the President) ◼ About strengthening go
Slide 30: (FY23 Q4) Summary of New Medium-Term Management Plan ONE & ONLY 2026
(FY23 Q4) 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 Profit attributable to Operating revenue Profit before tax owners of parent ROE Market cap ¥ 4
Slide 31: (FY23 Q4) Segments in FY2024
(FY23 Q4) Segments in FY2024 Segments will be reorganized to establish the Car Premium business model Auto mobility and Car Premium segments will be merged to create further Group synergies Car Premium Finance Automobile Warranty Auto Mobility Premium Co., Ltd. Premium Warranty Services Co., Ltd. Pr
Slide 32: (FY23 Q3) 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 Little to no impact on ◼ Agilely responding to rising interest rates and inflation earnings (1) FX fluctuations (3) Rising interest rates Interest rates for fu
Slide 33: BS (Millions of yen)
Note: Since it is a preliminary value, we will promptly notify you on our website when any corrections or changes occur. BS (Millions of yen) Compared to FY2023 FY2024.Q2 FY2024.Q3 previous QoQ (As of March 31, 2023) (As of September 30, 2023) (As of December 31, 2023) quarter Assets Cash and cash e
Slide 34: P/L (Consolidated Cumulative Period)
Note: Since it is a preliminary value, we will promptly notify you on our website when any corrections or changes occur. P/L (Consolidated Cumulative Period) (Millions of yen) FY2023.Q1-Q3 FY2024.Q1-Q3 (April 1 - December 31) YoY (April 1, 2022 - December 31, 2022) (April 1, 2023 - December 31, 2023
Slide 35: P/L (Consolidated Cumulative Period)
Note: Since it is a preliminary value, we will promptly notify you on our website when any corrections or changes occur. P/L (Consolidated Cumulative Period) (Millions of yen) FY2023.Q1-Q3 FY2024.Q1-Q3 (April 1 - December 31) YoY (April 1, 2022 - December 31, 2022) (April 1, 2023 - December 31, 2023
Slide 36: P/L (Consolidated Accounting Period)
Note: Since it is a preliminary value, we will promptly notify you on our website when any corrections or changes occur. P/L (Consolidated Accounting Period) (Millions of yen) FY2023.Q3 FY2024.Q2 FY2024.Q3 (October 1 - December 31) YoY QoQ (October 1, 2022 - December 31, 2022) (July 1, 2023 - Septem
Slide 37: P/L (Consolidated Accounting Period)
Note: Since it is a preliminary value, we will promptly notify you on our website when any corrections or changes occur. P/L (Consolidated Accounting Period) (Millions of yen) FY2023.Q3 FY2024.Q2 FY2024.Q3 (October 1 - December 31) YoY QoQ (October 1, 2022 - December 31, 2022) (July 1, 2023 - Septem
Slide 38: 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