Fp Partner, Inc. · TSE:7388
Fp Partner — Q1 FY2024 Earnings Presentation
61 slides from Fp Partner's earnings presentation, Apr 15, 2024
Slide 1: Financial Results Briefing Materials for the Three Months Ended February 29, 2024
Financial Results Briefing Materials for the Three Months Ended February 29, 2024 FP Partner Inc. April 15, 2024
Slide 2: Table of contents
Table of contents Financial highlights for the three months 01 ended February 29, 2024 Targets of priority measures 02 for the fiscal year ending November 30, 2024 Shareholder returns and dividend policy 03 for the fiscal year ending November 30, 2024 04 Business plan 05 Data 06 Appendix Copyright ©
Slide 3: Financial highlights for the three months ended February 29, 2024
01 Financial highlights for the three months ended February 29, 2024 Copyright © FP Partner Inc. All Rights Reserved. 3
Slide 4: Financial highlights: net sales up 13.3% year-on-year
Financial highlights for the three months ended February 29, 2024 Net sales increased 13.3% year-on-year due to record-high life insurance commission income. Net sales Operating profit Profit 8,332 million yen 1,362 million yen 938 million yen －5.9% Year-on-year Year-on-year Year-on-year change +13.
Slide 5: Upfront investment to increase net sales in 2Q and beyond
Upfront investment to increase net sales in 2Q and beyond Implement measures to achieve income exceeding the high cost of living Measures Base salary increases and In-house Increase in Sales employees employees provision of living allowances compensation Number of employees and annual salary trends
Slide 6: Achievement versus the full-year forecast
Financial highlights for the three months ended February 29, 2024 [achievement versus the full -year forecast] Net sales significantly exceeded the plan due to an improvement in motivation, although an increase in compensation for sales employees restrained profit growth. Other items also exceeded t
Slide 7: Key KPIs
Financial highlights for the three months ended February 29, 2024 [Key KPIs] Number of sales employees Number of policy transfers agreed to 2,402 32,343 Year-on-year change +334 people Year-on-year change +9,398 cases (+16.2%) (+41.0%) Number of prospective policy customers Number of new policies 40
Slide 8: Financial highlights for the three months ended February 29, 2024
Financial highlights for the three months ended February 29, 2024 ⚫ 196 hires were made in 1Q compared to the annual hiring target of 700 hires. A record-high 82 visiting sales employees were hired for the single month of January 2024. • The number of prospective customers for insurance policies als
Slide 9: Income statement for the three months ended February 29, 2024
Income statement for the three months ended February 29, 2024 ⚫ Net sales increased steadily as the increase in sales employees in the previous quarter contributed to the acquisition of new policies. ⚫ Although operating profit and ordinary profit were negative year -on-year, they ended higher than
Slide 10: Earnings model [life and non-life insurance]
Earnings model [life and non-life insurance] Breakdown of commission income and trends from life insurance sales In the case of life insurance First-year Ongoing Business quality ⚫ The period of commission receipt varies from 5 to commissions commissions support fee 10 years for each insurance compa
Slide 11: Quarterly performance trends [Life insurance commissions]
Quarterly performance trends [Life insurance commissions] Life insurance commissions income (Unit: Millions of yen) 15.0%UP ⚫ Achieved record-high life insurance commission income for 1Q 7,999 17.9%UP 7,907 17 7,334 19 6,953 6,927 33 2,041 16.7%UP 6,564 2,197 6,311 23 40 33 1,980 22.0%UP 5,900 5,852
Slide 12: Key KPI trends [Number of policies and customers]
Key KPI trends [Number of policies and customers] Number of new policies and policies in force Number of customers [new and existing] 22.4%UP (Unit: Number of policies) 1,457,018 (Unit: Persons) 17.2%UP 1,400,000 226,878 600,000 591,648 136,464 21.6%UP 18.7%UP 1,189,907 504,959 1,200,000 1,230,140 2
Slide 13: New policy acquisition flow
New policy acquisition flow Results for the three months ended February 29, 2024 An increase in the number of sales employees was the driver of growth in new policies and net sales. Self-development Sales employees [Number of prospective policy customers] 40,127 [Net new customers] [Net new policies
Slide 14: Key KPI trends [Number of prospective policy customers]
Key KPI trends [Number of prospective policy customers (quarterly)] Number of customers attracted from partner companies and customers attracted on our own (Unit: Number of policies) ⚫ Record highs were recorded for both partner company customers and in-house customers 39,518 40,127 38,234 37,732 35
Slide 15: Key KPI trends [Number of new policies (quarterly)]
Key KPI trends [Number of new policies (quarterly)] Number of new policies (Unit: Number of policies) ⚫ Increase in sales employees also led to strong new contract numbers. 226,878 212,006 176,095 61,219 57,571 Year-on-year change 4Q 45,870 +6,813 154,435 57,271 53,884 (+13.4%) 3Q 42,952 130,225 100
Slide 16: Key KPI trends [Number of existing policies (quarterly)]
Key KPI trends [Number of existing policies (quarterly)] Number of policies in force (Unit: Number of policies) ⚫ The number of policies in force significantly Year- on-year +277,073 increased due to new policy acquisitions and policy change (+22.3%) transfers. 1,517,857 1,457,018 1,387,844 1,323,28
Slide 17: Key KPI trends [Number of new customers (quarterly)]
Key KPI trends [Number of new customers (quarterly)] Number of new customers (Unit: Persons) ⚫ Steady number of customers attracted and increase in the number of sales employees also led to a steady increase in the number of new customers. 136,464 125,080 36,950 34,026 Year-on-year change 92,467 91,
Slide 18: Key KPI trends [Number of existing customers (quarterly)]
Key KPI trends [Number of existing customers (quarterly)] Number of existing customers (Unit: Persons) Year-on- ⚫ Increase in existing customers provides future year +80,403 people opportunities for resale and proposals of other change (+16.9%) financial products. 591,648 613,000 568,988 546,868 504
Slide 19: Targets of priority measures for the fiscal year ending November 30, 2024
02 Targets of priority measures for the fiscal year ending November 30, 2024 Copyright © FP Partner Inc. All Rights Reserved. 19
Slide 20: Priority measures for the fiscal year ending November 30, 2024
Priority measures for the fiscal year ending November 30, 2024 Increase in sales employees Policy transfers Continue to increase the number of sales employees and promote high equalization. The number of agents has been decreasing due to the return to the core business, change in Respond to the high
Slide 21: Number of sales employees and hires
Number of sales employees and hires Net increase Number of sales employees and hires Number of sales employees (Unit: Persons) 76 Number of hires (Unit: Persons) 2,500 300 ⚫ 196 people hired in 1Q 2,402 Steady start towards the annual target of 700 hires 2,326 250 2,215 227 2,166 2,068 196 2,000 1,9
Slide 22: High equalization of sales employees
High equalization of sales employees Salary trends for sales employees (Unit: Thousands of yen) Annual revenue increased 16,000 Stable acquisition of due to the accumulation of ongoing commissions from 14,000 new policies in-force policies 15,400 12,000 10,000 10,650 8,000 9,473 6,000 4,000 6,028 2,
Slide 23: Number of offices
Number of offices Targeting a more detailed customer follow-up system and sales network expansion with the increase in sales employees. Nationwide 132 branches Hokkaido area 6 branches/1 store 152 offices 20 stores Hokuriku/ Shinetsu area Tohoku area ※ As of February 29, 2024 16 branches/1 store 9 b
Slide 24: Growth strategy for the fiscal year ending November 30, 2024
Growth strategy for the fiscal year ending November 30, 2024 Policy transfers We will significantly further develop three Non-life pillars that will support Money Doctor insurance Premier future growth. Copyright © FP Partner Inc. All Rights Reserved. 24
Slide 25: Expansion of policy transfer business
Priority initiatives for the fiscal year ending November 30, 2024 (1) Expansion of policy transfer business Trends in the number of agencies and sales employees in the life insurance industry (Unit: Stores) (Unit: Thousand persons) 100,000 1,600 Decrease of 11,434 agencies (12.5%) 91,111 88,650 85,8
Slide 26: Number of policy transfers agreed to
Priority initiatives for the fiscal year ending November 30, 2024 (1) Expansion of policy transfer business Number of policy transfers agreed to (Unit: Number of policies) ⚫ Agreement reached on 32,343 transfers 80,000 80,000 combined with M&As at the end of 1Q. ⚫ The number of companies negotiated
Slide 27: Impact from policy transfers
Priority initiatives for the fiscal year ending November 30, 2024 (1) Expansion of policy transfer business Impact from policy transfers 1 Acquiring new customers Number of Obtaining ongoing commissions policy 2 from transferred policies transfers Obtaining additional policies from agreed to 3 trans
Slide 28: Expansion of Money Doctor Premier business
Priority initiatives for the fiscal year ending November 30, 2024 (2) Expansion of Money Doctor Premier business Provide free consultations on all money-related issues, including life planning, advice on asset formation, and money for end of life such as retirement funds and inheritance. Newly opene
Slide 29: Covering all major areas in Japan
Priority initiatives for the fiscal year ending November 30, 2024 (2) Expansion of Money Doctor Premier business Covering all major areas in Japan Effect of ⚫ Improve recognition of the Money Doctor brand in areas where stores are located. store openings ⚫ Increase in sales of savings-type products
Slide 30: Money Doctor Premier bookings and annualized new business premium
Priority initiatives for the fiscal year ending November 30, 2024 (2) Expansion of Money Doctor Premier business Number of bookings for store visits Annualized new business premium [ANP based] (Unit: Number of bookings) 5,000 (Unit: Millions of yen) 5,000 3,000 ⚫ Expansion of store numbers also incr
Slide 31: Improvement of non-life insurance business performance
Priority initiatives for the fiscal year ending November 30, 2024 (3) Improvement of non-life insurance business performance Full-scale launch of financial planners Non-life insurance Strengthen commissions specifically for non-life insurance (Unit: Millions of yen) Increase in the number of [As of
Slide 32: Base growth strategy
Base growth strategy We will continue with existing growth strategies and aim to further improve business performance. 1 2 3 Strengthening and Released in August 2023 high equalization Construction of CDP ［Customer Data Platform］ Strengthened functions of sales employees of Money Doctor LINE ⚫ Posti
Slide 33: Expansion of business domain - Maximization of LTV
Expansion of business domain - Maximization of LTV Started handling financial products besides insurance through IFAs Optimal overall solutions by FP Partner LTV Inheritance planning Understanding the current situation Maximizing customers’ LTV Asset management Planning and countermeasures Second li
Slide 34: IFA business overview
New business [Expansion of IFA business] IFA business overview We aim to further expand our IFA sales network and [As of February 29, 2024] provide services nationwide. [Balance of assets [Number of registered [Securities accounts] [IFA offices] under custody] sales representatives] 3,155 12,697 55
Slide 35: New business [Advertising business and financial literacy education business]
New business [Advertising business and financial literacy education business] Growth of highly profitable businesses (besides insurance sales) that contribute to a higher operating profit margin Advertising business Financial literacy education business Ordered advertisements are displayed on the Mo
Slide 36: Money Doctor Premier Mobile Consultation Sessions started
[Topics] Money Doctor Premier Mobile Consultation Sessions started Pop-up events held in various locations. Provided financial planning consultations to more customers. ⚫ Supporting resolution of concerns related to the new NISA system ⚫ Responding to concerns of customers such as “I’m interested, b
Slide 37: Added four insurance companies handled
[Topics] Added four insurance companies handled to improve performance of non-life insurance Direct non-life insurance Supporting policy transfers business Added non-life insurance Expanded handling of direct-type companies capable of handling automobile insurance companies policy transfer Copyright
Slide 38: Shareholder returns and dividend policy for the fiscal year ending November 30, 2024
03 Shareholder returns and dividend policy for the fiscal year ending November 30, 2024 Copyright © FP Partner Inc. All Rights Reserved. 38
Slide 39: Proactive shareholder returns [Shareholder benefits]
Proactive shareholder returns [Shareholder benefits] Shareholder Conducted twice a year: interim and year-end. benefits Each time, shareholders will receive a QUO Card worth 3,000 yen. Shareholder benefits program We are pleased to present this gift to our shareholders as a Interim Year-end token of
Slide 40: Start of interim dividends and revised dividend forecast
Proactive shareholder returns [Start of interim dividends and revised dividend forecast for the fiscal year ending November 30, 2024] ⚫ Commencement of interim dividends with a record date of May 31 every year, starting this Shareholder fiscal year returns policy ⚫ As the Company’s performance is on
Slide 41: Business plan
04 Business plan Copyright © FP Partner Inc. All Rights Reserved. 41
Slide 42: Business plan values [FY2024 to FY2026]
Business plan values [Fiscal year ending November 30, 2024 (15th period) to fiscal year ending November 30, 2026 (17th period)] [no change] Created a new three-year business plan using the rolling method. We will strive to expand net sales by increasing personnel, increasing the number of customer a
Slide 43: Business plan values: net sales, operating profit, profit
Business plan values [Fiscal year ending November 30, 2024 (15th period) to fiscal year ending November 30, 2026 (17th period)] [no change] Net sales Operating profit / Profit Ordinary profit (Unit: Millions of yen) (Unit: Millions of yen) (Unit: Millions of yen) 10,539 50,000 48,088 11,000 10,496 8
Slide 44: Business expansion measures
Business plan values [Fiscal year ending November 30, 2024 (15th period) to fiscal year ending November 30, 2026 (17th period)] Sales Fiscal year Business expansion employee hiring target 700 （ ending November 30, 2024 ） measures 1 Organic growth 2 Hiring and education of Policy transfers/M&A sales
Slide 45: For future growth
For future growth Performance in line with plan at the beginning of the fiscal year ⚫ [Steady hiring of sales employees] 196 people ⚫ Steady acquisition of new policies ⚫ [Number of policy transfers and M&A agreements] ⚫ Record-high life insurance 32,343 cases commission income ⚫ [Record-high number
Slide 46: Data
05 Data Copyright © FP Partner Inc. All Rights Reserved. 46
Slide 47: Balance sheet
Balance sheet for the fiscal year ending November 30, 2024 (Unit: Millions of yen) Change from the As of November 30, As of February 29, 2024 Change end of the 2023 previous year (%) Current assets 14,311 10,402 -3,908 -27.3% Cash and deposits 11,960 7,913 -4,046 -33.8% Non-current assets 4,839 5,64
Slide 48: Key KPIs [quarterly cumulative period]
Key KPIs [quarterly cumulative period] FY22/11 FY23/11 FY24/11 QonQ Number of Item 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q increase/ decrease Number of policies in force 1,023,413 1,076,346 1,131,058 1,189,907 1,240,784 1,323,282 1,387,844 1,457,018 1,517,857 +60,839 Of which, new policies 47,618 100,551 154,435
Slide 49: Key KPIs [quarterly cumulative period]
Key KPIs [quarterly cumulative period] FY22/11 FY23/11 FY24/11 QonQ Number of Item 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q increase/ decrease Number of sales employees 1,890 1,962 2,007 2,014 2,068 2,166 2,215 2,326 2,402 +76 (people) Number of offices (locations) 111 119 124 128 132 137 145 152 152 ±0 Of which,
Slide 50: Key KPIs (new policies and new customers)
Key KPIs (new policies and new customers) [quarterly cumulative period] FY22/11 FY23/11 FY24/11 QonQ Number of Percentage Item 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q increase/ change decrease Number of new policies 47,618 52,933 53,884 57,571 50,760 57,628 57,271 61,219 57,573 -3,646 -6.0% Number of net new pol
Slide 51: Appendix
06 Appendix Copyright © FP Partner Inc. All Rights Reserved. 51
Slide 52: We always stand by the customer's side
Business concept We always stand by the customer’s side and work with them to create a lifetime money plan together. Consult with a long-term perspective on the future. In addition to life insurance and non-life insurance, improve the financial literacy Our future ideal vision is to we offer consult
Slide 53: Company profile
Company profile Company name FP Partner Inc. Established December 2009 Representative Representative Director and President Tsutomu Kuroki Nature of business Insurance agency Address 1-5-3, Koraku, Bunkyo-ku, Tokyo 112-0004 Number of employees 2,657 (as of February 29, 2024, excluding part-time empl
Slide 54: Business model
Business model We sell life and non-life insurance to customers mainly in their 30s and 40s by attracting customers mainly from partner companies, and we sell investment trusts according to their life planning, and we provide free financial planning consultation services throughout Japan. Developmen
Slide 55: Partner companies
Partner companies By increasing the ratio of in-house customer attraction and streamlining customer attraction from partner companies, we Partner companies will generate a steady stream of prospective customers. Attracting customers through joint ventures Results for the fiscal year ended November 3
Slide 56: Our strengths and features
Our strengths and features We not only sell insurance, but also provide comprehensive services to meet the needs of our customers. Comprehensive consulting We offer a wide range of services that Improved productivity through the division of labor go beyond insurance. between customer attraction and
Slide 57: Net sales, operating profit, and profit [past five fiscal years]
Net sales, operating profit, and profit [past five fiscal years] Trends in net sales (Unit: Millions of yen) 30,000 30,559 25,605 25,000 119.3% 20,919 122.4% 20,000 16,463 17,301 120.9% 15,000 105.1% Average growth rate over the 10,000 past four years 5,000 0 16.7% November 2019 November 2020 Novemb
Slide 58: Business plan values [revised]
Business plan values [Fiscal year ending November 30, 2024 (15th period) to fiscal year ending November 30, 2026 (17th period)] [no change] Background for Revised plan due to favorable progress in areas such as sales employee 1 staff hiring, policy transfers, and in-house customer acquisition. new b
Slide 59: IR website Quick Answer
IR website information The FP Partner TIMES (online shareholder newsletter) includes the Top Interview message from Representative Director Kuroki. IR website We provide extensive IR information. https://fpp.jp/ir/ We also provide answers to questions frequently asked by our Quick shareholders and i
Slide 60: Handling of this document
Handling of this document ⚫ The information contained in this document includes forward-looking statements such as earnings forecasts and business plans. ⚫ Such information is based on information available to the Company at the present time and on certain assumptions that are judged to be reasonabl
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