Slide 1: Financial Results Presentation for FY Ended March 31, 2024
TSE Prime Section: 7199 Premium Group Co., Ltd. Financial Results Presentation for FY Ended March 31, 2024 April 26, 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. Earnings and Dividend Forecast for FY Ending March 31, 2025 8. Appendix Access videos of our financial results presentations on our IR website at https
Slide 3: 1. Financial Highlights
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Slide 4: Highlights from FY Ended March 31, 2024 (1)
Highlights from FY Ended March 31, 2024 (1) ◼ Credit finance and automobile warranty both continued to record double-digit operating top line (volume) growth ◼ Automobile warranties are growing at a high clip amid an increase in high-priced Car Premium warranties (trend of shift from own warranty to
Slide 5: Highlights from FY Ended March 31, 2024 (2)
Highlights from FY Ended 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 (¥53,60
Slide 6: Highlights from FY Ended March 31, 2024 (3)
Highlights from FY Ended March 31, 2024 (3) Progress of Medium-Term Management Plan, (Graph unit: companies/stores) ONE & ONLY 2026 Car Premium Club Memberships Car Premium Dealer Progress: 53.2% Promoting initiatives to establish the Car Premium business model FY2026 target 2,660 5,000 • Expanding
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 23.9% YoY to ¥31,546 million owing to the strong growth of each segment ◼ Operating profit was up 45.9% YoY to ¥6,195 million and profit before tax was up 44.5% YoY when excluding one-off profit ◼ Enhanced timely disclosures (shorte
Slide 9: Operating Expenses (Breakdown)
Operating Expenses (Breakdown) (Millions of yen) ◼ Although costs have increased as sales have grown, operating expenses remain below the growth of operating revenue FY23 Operating expenses FY24 Operating expenses ¥21,220 million ¥25,351 million (up 19.5% YoY) (YoY change) Operating income 25,465 Op
Slide 10: 3. Car Premium
43 n-SL=P 33. Car Premium 10
Slide 11: 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 ◼ The number of Car Premium Dealer memberships rose only slightly YoY because of price revisions instituted fo
Slide 12: 4. Finance Segment
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Slide 13: 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 24.6% YoY and auto loan PH continued to rise as well * Please see page 31 for details of Car Premium strategy Q4 total
Slide 14: Loan Receivables
Finance segment Loan Receivables (Billions of yen) ◼ Loan receivables broke through the ¥600 billion mark and grew, up 24.6% YoY ◼ Continuously increase collection of delinquent receivables by bolstering headcount, taking DX measures (auto calling), and collaborating with service subsidiary ◼ The de
Slide 15: Other Indicators
Finance segment Other Indicators ◼ The number of Car Premium Club*1 memberships continues to rise, and the ratio of Car Premium Dealers to auto loan volume temporarily declined owing to the increase in large customers ◼ Not planning to increase sales staff significantly but rising PH (establishing m
Slide 16: 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*2 remains at a high level. ◼ Profit before tax ex
Slide 17: 5. Automobile Warranty Segment
5. Automobile Warranty Segment 17
Slide 18: Total Volume of New Warranties
Automobile warranty segment Total Volume of New Warranties (Millions of yen) ◼ Automobile warranty volume up 19.5% YoY despite the used vehicle market recovering only slightly ◼ Volume of products developed in-house continued to grow, up 33.2% YoY ◼ Aiming to increase volume of warranty services wit
Slide 19: 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 Automobile warra
Slide 20: 6. Auto Mobility Segment
43 Ni-JL=P C6. Auto Mobility Segment 20
Slide 21: Segment Performance
Auto mobility segment Segment Performance (Millions of yen) ◼ Focused on developing services for Car Premium Club*2 and creating new businesses. Increased largely in unison with each service. Auto Mobility Segment Operating Revenue*2 Up 54.0% YoY 5,874 FY23 FY24 YoY change Car Premium Subscription-
Slide 22: 7. Earnings and Dividend Forecast for FY Ending March 31, 2025
7. Earnings and Dividend Forecast for FY Ending March 31, 2025 22
Slide 23: Earnings and Dividend Forecast for FY Ending March 31, 2025
Earnings and Dividend Forecast for FY Ending March 31, 2025 (Millions of yen) ◼ Operating revenue is forecast to be ¥40 billion (vs. MTP forecast: ¥36 billion) and profit before tax ¥8.0 billion (vs. MTP forecast: ¥7.8 billion) ◼ Forecast is annual dividend increase of ¥12 per share. Expect to raise
Slide 24: 8. 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 Established May 25, 2015 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 Finance Automobile warranty Auto mobility Operating Operating Profit before (Of which, Car Premium)
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: Released Car Premium Anshin Shop
(FY 24 Q3) 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
Slide 30: 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 31: 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 32: 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 segment Auto mobility segment Premium Co., Ltd. Premium Warranty Servi
Slide 33: 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 ◼ Agilely responding to rising interest rates and inflation on earnings (1) FX fluctuations (3) Rising interest rates Interest rates for fu
Slide 34: B/S
Note: Since it is a preliminary value, we will promptly notify you on our website when any corrections or changes occur. B/S (Millions of yen) FY2023 FY2024.Q1 FY2024.Q2 FY2024.Q3 FY2024 YoY QoQ (As of March 31, 2023) (As of June 30, 2023) (As of September 30, 2023) (As of December 31, 2023) (As of
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 FY2024 (Consolidated cumulative period) YoY (As of March 31, 2023) (As of March 31, 2024) Operating revenue 25,465 31
Slide 36: 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 FY2024 (Consolidated cumulative period) YoY (As of March 31, 2023) (As of March 31, 2024) Operating revenue Finance i
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) FY2023.4Q FY2024.1Q FY2024.2Q FY2024.3Q FY2024.4Q (Consolidated accounting period) （January 1, 2023 - （April 1, 2023 - （July
Slide 38: 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) FY2023.4Q FY2024.1Q FY2024.2Q FY2024.3Q FY2024.4Q (Consolidated accounting period) （January 1, 2023 - （April 1, 2023 - （July
Slide 39: 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