Premium Group Co., Ltd. · TSE:7199
Premium — FY2020 Earnings Presentation
33 slides from Premium's earnings presentation, May 29, 2020
Slide 1: Financial Results Presentation for FY ended March 31, 2020
決算説明資料 Financial Results Presentation for FY ended March 31, 2020 May 29, 2020 プレミアグループ株式会社 Premium Group Co., Ltd.
Slide 2: Contents
Contents ・Impacts from the COVID-19 Pandemic ・Summary of Financial Results for FY Ended March 31, 2020 ・Earnings Forecast for FY Ending March 31, 2021 ・Appendix © Premium Group All Rights Reserved.
Slide 3: Impacts from the COVID-19 Pandemic
Impacts from the COVID-19 Pandemic © Premium Group All Rights Reserved.
Slide 4: COVID-19: Market Conditions and Impacts on Main Businesses
COVID-19: Market Conditions and Impacts on Main Businesses The growth rate of the credit finance business slowed somewhat due to lower sales Only limited impacts from deterioration in receivables, which was a concern Market conditions, etc. Our situation Impacts Used car market ・Network stores (
Slide 5: COVID-19: Initiatives for Employees
COVID-19: Initiatives for Employees We quickly responded using various means to ensure the safety and security for our employees and their families ‣Transitioning all employees to working from home, including ▽Social distancing logo sales (target ratio of employees working from home: 80%) ┗We have
Slide 6: COVID-19: External Initiatives
COVID-19: External Initiatives Launched social contribution activities for the COVID-19 pandemic ‣Form "Premium Value Support Project" ┗With the COVID-19 pandemic growing, we launched an in-house project intended to provide assistance and have a positive impact on society wherever possible. ‣Donat
Slide 7: COVID-19: Financial Condition and Plan
COVID-19: Financial Condition and Plan We plan to increase our cash position for the time being so that we will be able to consider restarting hiring and investments in new office openings after COVID-19 Securing cash on hand and liquidity Cash and cash equivalents*1 ¥6,286 million Short-term borr
Slide 8: Summary of Financial Results for FY Ended March 31, 2020
Summary of Financial Results for FY Ended March 31, 2020 © Premium Group All Rights Reserved.
Slide 9: Highlights from FY Ended March 31, 2020
Highlights from FY Ended March 31, 2020 Recorded double-digit growth in core businesses (credit finance and automobile warranty) Posted record-high profits, despite falling short of plan due to impairment caused by COVID-19 ■Credit finance and automobile warranty both enjoyed strong growth, as ope
Slide 10: Details about the impairment loss of affiliated company in Thailand (ECL)
Details about the impairment loss of affiliated company in Thailand (ECL) Impairment (approx. ¥871 million) was booked for ECL, an affiliated company in Thailand, in the financial results for the fiscal year ended March 31, 2020 Mar. 1, 2020 May 1, 2020 The cause was the temporary tumble in ECL’
Slide 11: One-Off Loss in FY Ended March 31, 2020
One-Off Loss in FY Ended March 31, 2020 Booked ¥156 million as one-off loss Profit before tax for core businesses was up 25.3% over the previous year Profit before tax Breakdown of ¥156 million one-off loss (millions of yen) One-off loss (millions of yen) ¥156 million Changes in accounting One-off
Slide 12: Consolidated Performance for FY Ended March 31, 2020
Consolidated Performance for FY Ended March 31, 2020 (Millions of yen) [Consolidated] [Consolidated] FY ended March 31, FY ended March 31, YoY change 2020 2019 Operating income 14,016 10,759 +30.3% Operating expenses 12,458 10,001 +24.6% Profit before tax 2,604 2,097 +24.2% Profit attributable to ow
Slide 13: Credit Finance Business—Total Volume of New Loans
Credit Finance Business—Total Volume of New Loans (Billions of yen) Total volume of new loans FY20 total volume was 174.6 ¥174.65 billion Auto loan PH 29.2% increase YoY Soaring growth for 9 straight years Q1-Q3 drove growth this fiscal year FY20 YoY change Q4 alone 135.1 1Q: +28.9%; 2Q: +54.7%;
Slide 14: Credit Finance Business: Loan Receivables
Credit Finance Business: Loan Receivables (Billions of yen; %) Loan receivables 318.7 Delinquency rate (more than 3 months) FY20 loan receivables totaled FY20 250.7 ¥318.7 billion 27.1% increase YoY 205.6 Double digit growth since foundation Delinquency rate remained low Characteristics of loan
Slide 15: Credit Finance Business: Number of Network Stores
Credit Finance Business: Number of Network Stores Number of credit (Companies) network stores 22,549 Number of network stores FY20 is FY20 20,417 22,549 10.4% increase YoY 18,440 Broke through 22,000 Increasing steadily since foundation Continuing to focus on operating ratio Initiatives to inc
Slide 16: Automobile Warranty Business: Total Volume of New Warranties
Automobile Warranty Business: Total Volume of New Warranties (Millions of yen) Total volume of new warranties FY20 total volume was 4,363 ¥4,363 million FY20 45.5% increase YoY Q4 alone EGS ¥1,106 million in Q4 alone (up 34.8% YoY) EGS 939 FY20 total volume was ¥3,424 million for Premium Co., Ltd. 2
Slide 17: Full-year Financial Highlights (YoY)
Full-year Financial Highlights (YoY) Operating income hit ¥14,016 million (up 30.3% YoY) Profit before tax reached ¥2,604 million (up 24.2% YoY) Operating income Profit before tax (millions of yen) (millions of yen) YoY change 3,475 YoY change Q4 +30.3% 14,016 232 ECL +24.2% Q3 Impairment 190 lo
Slide 18: Operating Income (P/L) by Segment
Operating Income(P/L) by Segment (Millions of yen) FY20 14,016 (+30.3%) Figures in parentheses indicate YoY 707 (+162.8%) 10,759 FY20 operating income by segment totaled 9,065 269 3,661 ¥14,016 million (+52.8%) 112 2,395 30.3% increase YoY 2,068 ¥3,755 million in Q4 alone (up 30.6% YoY) Steady g
Slide 19: Operating Expenses (PL) (YoY Comparison)
Operating Expenses (PL) (YoY Comparison) Operating expenses totaled ¥12,458 million (up 24.6% YoY) SG&A expenses increased overall from upfront investment and the consolidation of subsidiaries, including EGS FY19 FY20 (Millions of yen) Percentage of operating income 14,016 Increase attributed to
Slide 20: Other Topics
Other Topics Establishment of Premium Mobility Services Co., Ltd. and Premium Auto Parts Co., Ltd. On January 22, 2020, we established Premium Mobility Services Co., Ltd., which is responsible for auto mobility services, and Premium Auto Parts Co., Ltd., which is responsible for the auto parts busin
Slide 21: Review of FY Ended March 31, 2020
Review of FY Ended March 31, 2020 Apr. 2019 Relocated the Higashi Tokyo Branch Office in Kaihin Makuhari in Chiba Prefecture to the same office of a Group company for expansion May Established a worldwide automobile warranty platform Aug. Launched "Premium's Warranties,” a proprietary warranty produ
Slide 22: Earnings Forecast for FY Ending March 31, 2021
Earnings Forecast for FY Ending March 31, 2021 © Premium Group All Rights Reserved.
Slide 23: Earnings Forecast and Management Environment for FY Ending March 31, 2021
Earnings Forecast and Management Environment for FY Ending March 31, 2021 Guidance withheld Performance We have found it is difficult to reasonably determine future estimates at the current point in time due to the impacts of Forecast COVID-19 We plan to release our earnings forecast at the ti
Slide 24: Topics for the 5th Ordinary General Meeting of Shareholders
Topics for the 5th Ordinary General Meeting Reference of Shareholders — Update about this year’s meeting — The format for this year’s shareholders' meeting will be changed to a live stream over the Internet. To prevent COVID-19 infections and the further spread of the pandemic, we determined it woul
Slide 25: Appendix
Appendix © Premium Group All Rights Reserved.
Slide 26: Example of Break-Even Point from Negative Impacts of COVID-19
Example of Break-Even Point from Negative Impacts of COVID-19 Because of our stock-type business model, our business is extremely resilient to declining volumes caused by COVID-19. Reference: Total volume of auto loans for April 2020 was ¥11,710 million (up 0.9% YoY) Revenue Profit Expenses Total vo
Slide 27: Changes in Accounting Estimates (Provision for Insurance Assets)
Changes in Accounting Estimates (Already Disclosed in Q1 FY20) Insurance assets* will be booked from the fiscal year ending March 31, 2020 because it is now possible to make reasonable forecasts of future insurance income related to insurance transactions in the mainstay credit finance business base
Slide 28: Revisions to Full-Year Earnings Forecast
Revisions to Full-Year Earnings Forecast (Already Disclosed in Q1 FY20) Full-year profit before tax forecast revised upward to ¥3,141 million (announced Aug. 8) Effect from changes in accounting estimates expected to be ¥1,670 million for the full- year Upfront investment aimed at long-term gr
Slide 29: Company Profile
Company Profile Name Premium Group Co., Ltd. Securities Code / Exchange 7199 / First Section of Tokyo Stock Exchange May 25, 2015 Established Note: G-ONE Credit Services Co., Ltd. (currently, Premium Co., Ltd.) was established in 2007. 19th Floor, The Okura Prestige Tower, 2-10-4 Toranomon, Head Off
Slide 30: Overview of Premium Group
Overview of Premium Group Other businesses Automobile warranty business 5.0 Auto mobility business: % Operating income ・Provision of multiple services required for 26.1 % by business (FY Ended March 31, managing automobile logistics business Overseas business ・Business expansion outside Japan (m
Slide 31: B/S
B/S （Thousand yen） Q2 FY20 Q3 FY20 FY19 Q1 FY20 FY20 Compared to previous (As of September 30, (As of December 31, QoQ (As of March 31, 2019) (As of June 30, 2019) (As of March 31, 2020) quarter 2019) 2020) Assets Cash and cash equivalents 6,186,088 5,420,578 6,787,439 6,848,356 6,285,647 101.6% 91.
Slide 32: P/L Consolidated cumulative period
P/L Consolidated cumulative period （Thousand yen） FY19 FY20 (April 1, 2018 - (April 1, 2019 - YoY March 31, 2019) March 31, 2020) Operating income 10,759,236 14,015,883 130.3% Other finance income 146,407 5,408 3.7% Share of profit of investments 48,508 - - Other income 1,180,235 2,110,428 178.8% To
Slide 33: P/L Consolidated accounting period
P/L Consolidated accounting period （Thousand yen） Q4 FY19 Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20 (January 1, 2019 - (April 1, 2019 - (July 1, 2019 - (October 1, 2019 - (January 1, 2020 - YoY QoQ March 31, 2019) June 30, 2019) September 30, 2019) December 31, 2019) March 31, 2020) Operating income 2,874,724