Aeon Financial Service Co., Ltd. · TSE:8570
Aeon Financial Service — FY2021 Q2 Earnings Presentation
33 slides from Aeon Financial Service's earnings presentation, Oct 6, 2021
Slide 1: FY2021 Q2 IR Presentation Materials
FY2021 Q2 IR Presentation Materials 6 October, 2021 AEON Financial Service Co., Ltd. Stock Listing: Tokyo Stock Exchange, First Section AEON Financial Service Co., Ltd. Code No: 8570
Slide 2: Contents
Contents 1. Q2 Financial Highlights Q2 Status of Initiatives, Allowances for Bad Debts, and 2. Operating Expenses 3. Covid-19 situation through Q2 4. Initiatives after Q3 5. Medium-term Management Plan and Progress 6. ESG Initiatives 7. Revision of Earnings Results and Dividend Forecasts 8. APPENDIX
Slide 3: Q2 Financial Highlights (Consolidated results)
1. Q2 financial Highlights・Financial Highlights (Consolidated results ) The highlights of the consolidated results for Q2 ・Consolidated financial results for the second quarter increased in revenue and profit. ・Operating revenues also exceeded the same period last year. From the first quarter, the a
Slide 4: Q2 Cumulative Segment Results
1. Q2 Financial Highlights・Financial Highlights (Segment results) Q2 Cumulative Segment Results ・Operating revenues were affected by corona disasters, but both Domestic and Global businesses ・Operating profit improved bad debt-related expenses due to the effect of elaboration of examinations and str
Slide 5: Q2 Operating Receivables
1. Q2 Financial Highlights・Financial Highlights (Operating receivables) Q2 Operating Receivables *Balance of receivables before securitization ・The amount outstanding of operating receivables(*) in domestic businesses increased in both operating loans and installment receivables. Increase in balance
Slide 6: FY2021 First Half Initiatives (Domestic Business)
2. Q2 Status of Initiatives, Allowances for Bad Debts, and Operating Expenses・Initiatives in the 1H FY2021 First Half Initiatives (Domestic Business) ■Increase transaction volume from the 2H of the fiscal year onwards and acquire cardholders that will lead to the Initiatives with accumulation of ope
Slide 7: FY2021 First Half Initiatives (Global Business)
2. Q2 Status of Initiatives, Allowances for Bad Debts, and Operating Expenses・Initiatives in the 1H FY2021 First Half Initiatives (Global Business) 【Hong Kong】 ・10x points campaign at AEON Stores Hong Kong Initiatives at AEON Thana Sinsap ・Campaign to revitalize rebound consumption (food and drink,
Slide 8: Allowances for Bad Debts under IFRS9
2. Q2 Status of Initiatives, Allowances for Bad Debts, and Operating Expenses・Allowances for Bad Debts IFRS9 Definition of allowance for bad debts ・In overseas countries, ifrs9's bad debt allowance reserves have been applied, and the increase or decrease in the total amount of receivables affects th
Slide 9: NPL Ratio Trends (Global Business)
2. Q2 Status of Initiatives, Allowances for Bad Debts, and Operating Expenses・NPL Ratio NPL Ratio Trends (Global Business) ・In China Area, the balance of installment and debt collection, receivables will be improved. receivables and operating loans increased slightly. Improved NPL ratios in China an
Slide 10: Q2 Cumulative Operating Expenses (Domestic Business)
2. Q2 Status of Initiatives, Allowances for Bad Debts, and Operating Expenses・Operating Expenses Q2 Cumulative Operating Expenses (Domestic Business) ※Excluding financial expenses, bad debt allowance, and insurance expenses Unit：bn ・Operating expenses*, which are improved by 140 133.3 -9.2 billion y
Slide 11: Q2 Cumulative Operating Expenses (Global Business)
2. Q2 Status of Initiatives, Allowances for Bad Debts, and Operating Expenses・Operating Expenses Q2 Cumulative Operating Expenses (Global Business) ※Excluding financial expenses, bad debt allowance ・Operating expenses* improved by -3.1 billion yen compared to fiscal 2019. Personnel expense ratio to
Slide 12: Spread of infection and restrictions on activity in the operating countries
3. Covid-19 situation through Q2・Operating countries situation Spread of infection and restrictions on activity in the operating countries Period of 感染拡大時期： pandemic Activity 活動制限： restrictions 2Q： Status of FY 2019 1H Month 【TH、MY（Mar to Aug)】 Operating Private consumption has been resilient. area
Slide 13: Initiatives after Q3
業績ハイライト・概要 第3四半期以降の取り組み Initiatives after Q3 AEON Financial Service Co., Ltd. 12
Slide 14: Impact of profit and loss in the second half
4. Initiatives after Q3・Annual Operating Profit Plan Impact of profit and loss in the second half ・In the 2H of the FY, in order to expand the top line in the FY2021, focused on promoting expenses to acquire members and increase the amount of operating receivables. ・In addition, continue to work to
Slide 15: Responding to changes in consumer behavior
4. Initiatives after Q3・Priority Measures for the 2H Responding to changes in consumer behavior ・Capture changes in consumer behavior due to corona impacts and strengthen approaches to high- demand categories ■Categories that are expected to consume revenge after pandemic Business Categories Shoppin
Slide 16: Initiatives from the Q3 (Domestic business): card shopping
4. Initiatives after Q3・Priority Measures for the 2H Initiatives from the Q3 (Domestic business) ・Plan the following measures to increase card shopping volumes 【Internal】AEON Group's integrated sales promotion activities triggered by WAON POINT 【External】Incorporating revenge consumption and ongoing
Slide 17: Initiatives from the Q3 (Domestic business)
4. Initiatives after Q3・Priority Measures for the 2H Initiatives from the Q3 (Domestic business) 【Revolving credit】 ■Expansion of receivables by strengthening Online Cash Advance appeals for rivolving changes Promotion Banner Ads ・All revolving changes, revolving use promotion campaign ・Digital appe
Slide 18: Initiatives from the Q3 (Global business)
4. Initiatives after Q3・Priority Measures for the 2H Initiatives from the Q3 (Global business) 【Hong Kong】 ■Expansion of customer base and proceed into fee buss through collaboration with AEON Group ・Signed an acquirer agreement with AEON Stores Hong Kong. Introduced at all stores in FY2021 ■Accumul
Slide 19: Policy and Key Measures of Medium-Term Management Plan
5. Medium-Term Management Plan and Progress・Medium-Term Management Plan Policy and Key Measures of Medium-Term Management Plan Second founding Value chain innovation and network creation Domestic ① Building infrastructure for the construction of AEON living zone ② Incorporating the needs of local co
Slide 20: Building infrastructure for the construction of AEON living zone
5. Medium-Term Management Plan and Progress・Domestic Business ①Building infrastructure for the construction of AEON living zone To the most valuable living Integrate function Food, into app clothing zone for customers Cross-sell expansion & shelter with points Settlement Deposits Unification to WAON
Slide 21: Incorporating the needs of local communities and customers' living infrastructure
5. Medium-Term Management Plan and Progress・Domestic Business ②Incorporating the needs of local communities and customers' living infrastructure ・Promote the use of registered merchants and incorporate payments for living infrastructure services for individual customers. In addition, promote cross-s
Slide 22: Digital financial inclusion and business expansion (Malaysia)
5. Medium-Term Management Plan and Progress・Global Business ①Implementation of digital financial inclusion ②Expansion of business, products and development areas (Malaysia) Implementing Digital Financial Inclusion 【Set the purpose】 Realization of a financial inclusion and ① ■Digital Bank License App
Slide 23: Digital financial inclusion and business expansion (Thailand)
5. Medium-Term Management Plan and Progress・Global Business ①Implementation of digital financial inclusion ②Expansion of business, products and development areas (Thailand) Implementing Digital Financial Inclusion ■Nanofinance for Online Business Owners 15,000 ・Established a joint venture with eleva
Slide 24: ESG Initiatives
6. ESG Initiatives・ESG Measures ESG Initiatives 【AFS Group】The Group Sustainability Department was established through organizational reforms on September 1 to strengthen the promotion system. 【Domestic】Realization of a decarbonized society ■AEON Product Finance, AEON Bank New construction and renov
Slide 25: Annual Earnings Forecast
7. Revision of Earnings Results and Dividend Forecasts・ Annual Earnings Forecast Annual Earnings Forecast ・Revised financial results upward and increased dividends in response to cumulative results for the Q2 ・Dividends per share shall be ¥19, up ¥5 from the interim dividend, as a result of the incr
Slide 26: Earnings Forecasts and Dividends
7. Revision of Earnings Results and Dividend Forecasts・ Dividend Measures and Policies Earnings Forecasts and Dividends Unit：yen 80 1株当たり配当金額(※1) Dividend per share *1 配当性向 Payout ratio 50% 47.3% 40.1% 41.1% 43.0% 40% 60 41.7% 38.1% 37.2% 37.4% 35.1% 35.0% 30% 40 64 68 68 68 20% 56 58 20 45 40 45 34
Slide 27: Q2 Segment Results
8. APPENDIX・Segment Results Q2 Segment Results Unit：bn Domestic Global Consol. Total Retail Solution Total Mekong Total ※1 ※2 ※2 ※1 China Area Area Malay Area ※3 Operating Revenue 169.0 111.2 87.8 69.4 7.5 36.7 25.2 237.9 YoY 104％ 109％ 96％ 100％ 92％ 96％ 111％ 103％ Change +7.2 +9.3 △4.0 +0.2 △0.6 △1.5
Slide 28: Q2 Consolidated Balance Sheet
8. APPENDIX・Consolidated Balance Sheet Q2 Consolidated Balance Sheet ■In the second quarter, the amount outstanding of operating receivables, including operating loans, banking loans, and installment receivables, increased by ¥94.5 billion. The amount outstanding of allowances for bad debts decrease
Slide 29: Q2 Area Results
8. APPENDIX・Area Results Q2 Area Results （Unit：Billions of Transaction YoY YoY Balance of operating Increase or decrease at yen） volume (Compared to the same period (Compared to the same period receivables the start of the FY of the previous year) of the previous year)※ Credit card 3,062.1 105％ 99 (
Slide 30: Q2 Allowance for Doubtful Accounts and Allowance for Loss on Refund of Interest
8. APPENDIX Q2 Allowance for Doubtful Accounts and Allowance for Loss on Refund of Interest Received by Segment Domestic Retail Solutions FY2020 Q2 FY2021 Q2 Total Allowance for doubtful accounts, balance at Beginning of beginning of period ¥4.8bn ¥57.4bn ¥61.7bn period ¥4.9bn ¥5.7bn Provision of al
Slide 31: Q2 Global Business Results (Local currency)
8. APPENDIX・ Global Business Results Q2 Global Business Results (Local currency) FY2020 Q2 FY2021 Q2 Results YoY Results YoY AEON CREDIT Revenue 574,460 88% 511,570 89% SERVICE (ASIA) Profit before tax 181,640 79% 206,999 114% (HK$’000) Profit for the period 152,401 80% 172,340 113% AEON Total Reven
Slide 32: Q2 Global Business Results (Yen conversion)
8. APPENDIX・Global Business Results Q2 Global Business Results (Yen conversion) AEON Credit Service FY2020 Q2 FY2021 Q2 (Unit:Billions of yen) (Asia) Co., Ltd. Results Results YoY Exchange rates: HKD 1 Operating income 7.9 7.2 91％ ・FY2020 Q2 ：¥13.82 ・FY2021 Q2 ：¥14.08 Operating profit 2.5 2.9 116％ F
Slide 33: 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 — FY2021 Q2 Earnings Presentation on 6ix