Premium Group Co., Ltd. · TSE:7199
Premium — Q3 FY2023 Earnings Presentation
36 slides from Premium's earnings presentation, Feb 3, 2023
Slide 1: Financial Results Presentation for Q3 of FY Ending March 31, 2023
Financial Results Presentation for Q3 of FY Ending March 31, 2023 February 3, 2023 TSE Prime Section: 7199 Premium Group Co., Ltd.
Slide 2: Agenda
1. Summary of Financial Results for Q3 of FY Ending March 31, 2023 2. Finance Segment 3. Automobile Warranty Segment 4. Auto Mobility Segment 5. Car Premium Segment 6. Appendix Access videos of our financial results presentations on our IR website at https://ir.premium-group.co.jp/en/library/movie.h
Slide 3: Key Messages
Key Messages Market Environment ◼ Severe market conditions persist amid declining used vehicle inventories and rising unit prices ◼ Even if interest rates continue rising, our operations will only be affected minimally For details, see p.4 Our KPIs and Performance ◼ Credit finance and automobile war
Slide 4: Our Actions to Address Changes in the External Environment
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 funding auto
Slide 5: 1. Summary of Financial Results for Q3 of FY Ending March 31, 2023
1. Summary of Financial Results for Q3 of FY Ending March 31, 2023 5
Slide 6: Highlights from Q3 of FY Ending March 31, 2023 (1)
Highlights from Q3 of FY Ending March 31, 2023 (1) ◼ New vehicle production was up in Q3, but the market remains severe ◼ Growth in volume of new loans for both credit finance and automobile warranty Market KPIs (Billions of yen) Number of new vehicles sold Number of used passenger Total volume of n
Slide 7: Highlights from Q3 of FY Ending March 31, 2023 (2)
Highlights from Q3 of FY Ending March 31, 2023 (2) ◼ Higher profits and sales, future expected earnings(deferred profit)¥41.5 billion stocked on BS ◼ Performance of our four businesses remains steady as operating profit, an indicator of core business profitability, was up 25.7% YoY Future expected e
Slide 8: Highlights from Q3 of FY Ending March 31, 2023 (3)
Highlights from Q3 of FY Ending March 31, 2023 (3) ◼ Implemented various stakeholder measures for medium- to long-term growth Main Topics Car Premium Car Premium ESG ESG Sponsored Yaima Held seminar for high Implemented measures Established official SDGs symposium school students to increase brand Y
Slide 9: Consolidated Performance
Consolidated Performance (Millions of yen) ◼ Operating income of ¥18,386 million, up 19.7% YoY ◼ Operating profit was up 25.7% amid growth in operating income and minimized operating expenses YoY Operating income FY22 Q3 FY23 Q3 change 18,386 15,362 Operating income 15,362 18,386 +19.7% Operating ex
Slide 10: Operating Expenses (Breakdown)
Operating Expenses (Breakdown) (Millions of yen) ◼ Lower growth in operating expenses versus growth in operating income (+19.7%) FY22 Q3 Operating expenses FY23 Q3 Operating expenses ¥12,549 million ¥14,850 million (up 18.3% YoY) (YoY change) Operating income 15,362 Operating income 18,386 (+19.7%)
Slide 11: Full-Year Performance Outlook
Full-Year Performance Outlook (Millions of yen) ◼ Quarterly performance is to increase gradually from the further accumulation of loan receivables ◼ Furthermore, we plan to post mass advertising expenses (around ¥400 million) in Q4 for increasing visibility of the Car Premium brand Operating income
Slide 12: Performance by Segment
Performance by Segment (Millions of yen) ◼ Each segment steadily setting new record highs for operating income ◼ Auto mobility and Car Premium segments providing greater share of operating income Operating income FY23 Q3 Finance Automobile warranty Auto mobility Car Premium Operating income Profit b
Slide 13: 2. Finance Segment
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Slide 14: Finance Segment Total Volume of New Loans
Finance Segment Total Volume of New Loans (Graph unit: billions of yen, %) ◼ Despite a challenging market environment, volume of new loans grew, up Volume of new loans 16.6% YoY Up 16.6% YoY ◼ Further sales efficiency resulted in auto loan PH rising 13.5% YoY ◼ Continue with measures to retain deale
Slide 15: Finance Segment Loan Receivables
Finance segment Loan receivables (Graph unit: billions of yen, %) ◼ Loan receivables also grew, up 17.9% YoY Loan receivables ◼ Continued elimination of initial arrears reduction by achieving efficient calling through DX measures Up 17.9% YoY ◼ Strengthened collection activities for medium- to long-
Slide 16: Finance Segment Other Indicators
Finance segment Other Indicators ◼ Working to promote utilization and increase share among existing network stores while continuing to develop new network stores ◼ No plan to significantly increase sales staff in FY2023 Aiming to increase the volume of new loans by establishing mechanisms and making
Slide 17: 3. Automobile Warranty Segment
3. Automobile Warranty Segment 17
Slide 18: Total Volume of New Warranties
Automobile warranty segment Total volume of new warranties (Graph unit: millions of yen) ◼ Despite the severe market, the total volume of new warranties was up 11.9% YoY Product volume ◼ Volume for products developed in-house continues growth, up 24.7% YoY Up 11.9% YoY ◼ Expanded new clients and sal
Slide 19: Cost Reduction Measures / Parts Sales
Automobile warranty segment Cost Reduction Measures／Parts Sales (Graph unit: millions of yen) ◼ Expanded lineup of parts handled and increased parts provided for warranty repair (internal parts sales) and encouraged use of our automobile maintenance facility network, reducing cost of sales ratio ◼ C
Slide 20: 4. Auto Mobility Segment
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Slide 21: Auto Mobility Segment Performance
Auto mobility segment Performance (Graph unit: millions of yen) ◼ Focused on developing services for Car Premium Club and creating new businesses ◼ Software sales to Premium network stores and vehicle wholesaling contributing to increased sales Auto Mobility Segment Operating Income Subscription-bas
Slide 22: 5. Car Premium Segment
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Slide 23: Car Premium Club Memberships
Car Premium segment Car Premium Club Memberships ◼ Steady progress in building Car Premium Club, a paid membership organization for car dealers and maintenance facilities ◼ Aim to upsell to paid memberships, increase membership growth and boost membership fee revenue by reinforcing services Car Prem
Slide 24: To Increase Car Premium Brand Visibility
Car Premium segment To Increase Car Premium Brand Visibility ◼ Appointed celebrities to increase exposure and expand the visibility of the Car Premium brand → Increase online traffic and grow paid membership organizations by fostering the Car Premium brand Celebrity appointment Appointed GENERATIONS
Slide 25: 6. Appendix
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Slide 26: 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, Toky
Slide 27: Company Profile
Company Profile Premium Group is an auto mobility company offering customers a vibrant car life alongside our network of car dealers and garages. Main Business Diversified Business Portfolio as an Independent Company Automobile Finance Warranty Auto Mobility ▷Main business ▷Main business 14% ・Auto c
Slide 28: Our DX Strategy
Our DX Strategy In approximately one year from formulating our DX strategy, we built our DX initiative platform and became a Noteworthy DX Company 2022 and a DX Certified Business Operator Seeking to realize our concept as a platform provider of connecting end-users and mobility providers Achieving
Slide 29: Segment Reorganization
(FY23.1Q)Segment Reorganization Reclassified reporting segments due to the rising importance of the Car Premium Club, the generation of greater Group synergy, and expanding our business Finance segment Automobile warranty segment Auto mobility segment Car Premium segment Premium Co., Ltd. Premium Wa
Slide 30: About the Upward Revision to Full-Year Forecast
(FY23.2Q)About the Upward Revision to Full-Year Forecast ◼ Reversal of last year's impairment loss on our Thai affiliate (ECL) results in 990 million JPY in profit before taxes ◼ Spent 390 million JPY in marketing expenses as strategic investment for Car Premium ◼ Full-year profit before tax revised
Slide 31: Balance Sheet
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 the FY22 Q2.FY23 Q3.FY23 end of the QoQ (As of March 31, 2022) (As of September 30, 2022) (As of December 31, 2022) previous fiscal Assets Cash an
Slide 32: 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) Compared to Q1-Q3.FY22 FY22 Q1-Q3.FY23 the and of (April 1 - December 31) YoY (April 1,2021-December 31,2021) (April 1,2021-
Slide 33: P/L (Operating income/Operating expenses)
Note: Since it is a preliminary value, we will promptly notify you on our website when any corrections or changes occur. P/L (Operating income/Operating expenses) (Millions of yen) Compared to Q1-Q3.FY22 FY22 Q1-Q3.FY23 the and of (April 1 - December 31) YoY (April 1,2021-December 31,2021) (April 1,
Slide 34: P/L (Consolidated quarterly)
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) Q3.FY22 Q2.FY23 Q3.FY23 (October 1 - December 31) YoY QoQ (October 1,2021-December 31,2021) (July 1,2022-September 30,2022)
Slide 35: P/L (Operating income/Operating expenses)
Note: Since it is a preliminary value, we will promptly notify you on our website when any corrections or changes occur. P/L (Operating income/Operating expenses) (Millions of yen) Q3.FY22 Q2.FY23 Q3.FY23 (October 1 - December 31) YoY QoQ (October 1,2021-December 31,2021) (July 1,2022-September 30,2
Slide 36: Disclaimer
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