Fp Partner, Inc. · TSE:7388

Fp Partner — Q3 FY2023 Earnings Presentation

55 slides from Fp Partner's earnings presentation, Oct 11, 2023

  1. Slide 1: Financial Results Briefing Materials for the 3Q of FY Ending November 30, 2023

    Financial Results Briefing Materials for the 3Q of the Fiscal Year Ending November 30, 2023 FP Partner Inc. October 11, 2023

  2. Slide 2: Table of contents

    Table of contents 01 Financial highlights for the nine months ended August 31, 2023 02 Progress of priority measures and initiatives for the fiscal year ending November 30, 2023 03 Shareholder returns and dividend policy for the fiscal year ending November 30, 2023 04 Data 05 Appendix Copyright ©ＦＰ

  3. Slide 3: Financial highlights for the nine months ended August 31, 2023

    01 Financial highlights for the nine months ended August 31, 2023 Copyright ©ＦＰ Partner Inc. All Rights Reserved. 3

  4. Slide 4: Financial highlights for the nine months ended August 31, 2023

    Financial highlights for the nine months ended August 31, 2023 ⚫ Continuing into 3Q, new contracts and new customers increased due to an increase in the number of sales staff and further improvement in the level of sales employees (high equalization). ⚫ Acquisition of high-margin contracts such as i

  5. Slide 5: Progress rate toward the full-year forecast

    Financial highlights for the nine months ended August 31, 2023 [Progress rate toward the full -year forecast] ⚫ Performance is progressing smoothly even after the upward revision of performance estimates. Fiscal year ending Fiscal year ending November 30, 2023 November 30, 2023 Nine-month results Fu

  6. Slide 6: Financial highlights: 3Q KPI results and initiatives

    Financial highlights for the nine months ended August 31, 2023 ⚫ The hiring of sales employees has progressed smoothly, with 133 hires in the 3Q and 434 hires in the first nine months of the year. ⚫ Number of prospective policy customers increased to 37,732 (up 1,798 or 5.0%) 3Q KPI results due to c

  7. Slide 7: Income statement for the nine months ended August 31, 2023

    Income statement for the nine months ended August 31, 2023 ⚫ New contracts and new customers increased as a result of an increase in high-performing sales employees. Net sales were also strong. ⚫ Profitability improved despite an increase in SG&A expenses due to the expansion of business scale, incl

  8. Slide 8: Analysis of operating income fluctuations

    Analysis of operating income fluctuations in the nine months ended August 31, 2023 ⚫ Due to the increase in net sales, personnel expenses for canvassers (sales employees), a variable cost, also increased. ⚫ Although expenses increased due to the expansion of business scale, the increase in net sales

  9. Slide 9: 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 ⚫ The period of commission receipt varies from 5 to 10 First-year Ongoing Business quality years for each insurance company and product. commissions commiss

  10. Slide 10: Quarterly performance trends

    Quarterly performance trends ⚫ Factors such as the increase in high-margin new contracts has resulted in record-high first-year commissions. ⚫ The business quality support fee has increased steadily as per the upward revision announced in 2Q. Life insurance commissions income Unit: Millions of yen 7

  11. Slide 11: Key KPI trends [Number of policies/number of customers]

    Key KPI trends [Number of policies/number of customers] Number of new policies and Number of customers policies in force [new and existing] ⚫ Sales volume increased mainly in savings and investment ⚫ New customers increased in line with the increase in the number products to meet asset building need

  12. Slide 12: New policy acquisition flow

    New policy acquisition flow Results for the 3Q of the fiscal year ending November 30, 2023 [Number of prospective An increase in the number of sales employees will be the driver of policy customers] growth in new policies and net sales. 37,732 [Partner company customer acquisitions] Sales employees

  13. Slide 13: Number of sales employees and hires

    Number of sales employees and hires Number of sales employees and hires Number of sales employees Number of hires Unit: Number of people Unit: Number of people Net 2,500 ⚫ The total number of hires up to 3Q is 434, the fastest pace increase 201 300 ever. 2,166 2,215 250 ⚫ The net increase also conti

  14. Slide 14: Key KPI trends: company customer acquisitions

    Key KPI trends [Number of company customer acquisitions (quarterly)] ⚫ Increased appointments from policy transfers contributed to the rise in the number of in-house customer acquisitions and their ratio. Partner company customer acquisitions were also strong. Partner company customer acquisitions a

  15. Slide 15: Key KPI trends: number of existing customers

    Key KPI trends [Number of existing customers (quarterly)] Number of existing customers Unit: Number of people YoY +86,104 people change (+17.8%) 568,988 546,868 524,597 482,884 504,959 462,203 424,799 442,621 389,852 407,193 371,987 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q Fiscal year ended November 30, 202

  16. Slide 16: Key KPI trends: number of new customers

    Key KPI trends [Number of new customers (quarterly)] Number of new customers Unit: Number of people YoY change Key KPI trends [Number of new customers (quarterly)] 125,080 +3,135 people (+9.9%) 34,026 92,467 99,514 4Q 23,597 91,054 34,808 31,673 3Q 22,695 70,314 31,394 59,381 34,462 64,706 2Q 24,139

  17. Slide 17: Key KPI trends: number of existing policies

    Key KPI trends [Number of existing policies (quarterly)] ⚫ Policies-in-force increased due to steady accumulation of new policies in conjunction with an increase in the number of sales employees. ⚫ The transfer of 6,477 policies, including policy transfers in 3Q, was completed, resulting in an incre

  18. Slide 18: Key KPI trends: number of new policies

    Key KPI trends [Number of new policies (quarterly)] ⚫ Continuing in 3Q, sales of savings and investment products were strong to meet asset building needs such as retirement savings. Number of new policies Unit: Number of policies YoY change 212,006 +3,387 policies 176,095 (+6.3%) 57,571 4Q 45,193 16

  19. Slide 19: Progress of priority measures and initiatives

    02 Progress of priority measures and initiatives for the fiscal year ending November 30, 2023 Copyright ©ＦＰ Partner Inc. All Rights Reserved. 19

  20. Slide 20: Priority measures for the fiscal year ending November 30, 2023

    Priority measures for the fiscal year ending November 30, 2023 Increase in sales employees Policy transfers Continue to increase the number of sales employees and promote high The number of agents has been decreasing due to the return to the core equalization. business, change in business type, and

  21. Slide 21: Number of offices

    Number of offices New offices were opened in line with the increase in sales employees. In 3Q, the number of offices increased by 8 from 2Q. (*) 129 16 145 Hokkaido area branches stores Nationwide offices ※ As of August 31, 2023 6 branches 1 stores Hokuriku/Shinetsu area Tohoku area Number of office

  22. Slide 22: New growth strategy: three pillars for future growth

    New growth strategy for the fiscal year ending November 30, 2023 We will develop three Policy transfers pillars that will support future growth. To further accelerate growth, the three pillars will drive future performance starting Money Doctor Non-life insurance Premier stores from the fiscal year

  23. Slide 23: Expansion of policy transfer business: industry trends

    Priority initiatives for the fiscal year ending November 30, 2023 (1) Expansion of policy transfer business ⚫ The downward trend in the number of registered agents in Japan continues. Over the past five years, the number has decreased by 10,575 agents (11.6%). ⚫ This is due to factors such as increa

  24. Slide 24: Expansion of policy transfer business: agreements

    Priority initiatives for the fiscal year ending November 30, 2023 (1) Expansion of policy transfer business ⚫ There was a steady increase in the number of transfer agreements. In the 3Q, agreements were reached with 11 companies, the highest number ever (1Q: 6 companies, 2Q: 8 companies). ⚫ The numb

  25. Slide 25: Expansion of Money Doctor Premier business

    Priority initiatives for the fiscal year ending November 30, 2023 (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. OPEN on Yok

  26. Slide 26: Money Doctor Premier: covering all major areas in Japan

    Priority initiatives for the fiscal year ending November 30, 2023 (2) Expansion of Money Doctor Premier business Covering all major areas in Japan Effect of store openings Hokkaido area Store opening plan ⚫ Improve recognition of the Money Doctor Sapporo ● Sapporo Tokyu 30 brand in areas where store

  27. Slide 27: Money Doctor Premier: store visit bookings

    Priority initiatives for the fiscal year ending November 30, 2023 (2) Expansion of Money Doctor Premier business ⚫ The number of bookings for store visits has remained steady in line with Number of bookings for store visits the increase in the number of stores. Unit: Number of bookings 909 bookings

  28. Slide 28: Improvement of non-life insurance business performance

    Priority initiatives for the fiscal year ending November 30, 2023 (3) Improvement of non-life insurance business performance Roll out of non-life Roll out of non-face-to-face Cross-selling support insurance policy transfers Planned Started in sales through the Started in for through direct measures

  29. Slide 29: Base growth strategy

    Base growth strategy We will continue with existing growth strategies and aim to further improve business performance. Released 1 2 in August 2023 3 Strengthening of Establishment of sales employees Released Money High equalization CDP Doctor LINE (customer data platform) (*) ⚫ Posting of roll plays

  30. Slide 30: New business: advertising and financial literacy education

    New business - Advertising business and financial literacy education business Growth of new highly profitable businesses (besides insurance sales) that contribute to a higher operating margin Advertising business Financial literacy education business Ordered advertisements are displayed on the Money

  31. Slide 31: 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 Inheritance planning LTV Understanding the current situation Planning and Maximizing customers’ LTV Asset management countermeasures Second li

  32. Slide 32: Topics: IFA business initiatives

    [Topics] IFA business initiatives Preparations for the new NISA starting in 2024 IFA business overview [as of August 31, 2023] Number of securities Balance of assets under custody IFA offices accounts Branch offices 1,325 accounts 9,146 million yen and stores Including annexes 23 offices Affiliated

  33. Slide 33: Topics: Released Money Doctor LINE

    [Topics] Released Money Doctor LINE in August 2023 Money Doctor Supports comfortable communication between LINE customers and their sales representatives. Main features of Money Doctor LINE ⚫ Connecting customers and sales employees with LINE allows for more casual consultations. ⚫ Requests for cons

  34. Slide 34: Topics: Major renewal of IR website

    [Topics] Major renewal of IR website (from September 2023) Renewed to improve convenience along with the IR website change in listing to the Tokyo Stock Exchange Prime Market. New content added New English website Information provision expanded to Easy to view even for first-time visitors, overseas

  35. Slide 35: Shareholder returns and dividend policy

    03 Shareholder returns and dividend policy for the fiscal year ending November 30, 2023 Copyright ©ＦＰ Partner Inc. All Rights Reserved. 35

  36. Slide 36: Expansion of shareholder benefits

    Expansion of shareholder benefits [start of year -end benefits] Shareholder Expanded to twice a year, interim and year-end. Each time shareholder will receive a QUO Card worth benefits 3,000 yen. Shareholder benefits program Additional We are pleased to present this gift Interim Year-end to our shar

  37. Slide 37: Proactive shareholder returns

    Proactive shareholder returns Changed listing to Tokyo Stock Exchange Prime Market on September 11, 2023 We aim for long- [Basic dividend policy] Shareholder term sustainable returns Dividend shareholder policy returns. payout ratio 45% as a target [Dividend forecast for the fiscal year ending Novem

  38. Slide 38: Strategy in Prime Market

    Strategy in Prime Market Strategy in Prime Market Management We will pursue the true form of the insurance business, commit philosophy ourselves, and continue to protect the precious lives of our customers. Further development of initiatives up until now Enhancing the Development of Expansion of 1 h

  39. Slide 39: Data

    04 Data Copyright ©ＦＰ Partner Inc. All Rights Reserved. 39

  40. Slide 40: Balance sheet for the 3Q

    Balance sheet for the 3Q of the fiscal year ending November 30, 2023 Unit: Millions of yen Change from Fiscal year ended 3Q of the fiscal year ending Change the end of the November 30, 2022 November 30, 2023 previous year (%) Current assets 10,150 13,429 +3,278 +32.3% Cash and deposits 8,848 10,850

  41. Slide 41: Key KPIs for the fiscal year [cumulative]

    Key KPIs for the fiscal year ending November 30, 2023 [cumulative] Fiscal year ended November 30, 2022 Fiscal year ending November 30, 2023 QonQ Year-end Number of Item 1Q 2Q 3Q 4Q cumulative 1Q 2Q 3Q increase/ total decrease Number of policies 1,023,413 1,076,346 1,131,058 1,189,907 1,189,907 1,240

  42. Slide 42: Key KPIs for the fiscal year [cumulative]: sales employees and offices

    Key KPIs for the fiscal year ending November 30, 2023 [cumulative] Fiscal year ending Fiscal year ended November 30, 2022 QonQ November 30, 2023 Number Year-end of Percentage Item 1Q 2Q 3Q 4Q cumulative 1Q 2Q 3Q increase/ change total decrease Number of sales employees 1,890 1,962 2,007 2,014 2,014

  43. Slide 43: New policies and new customers [quarterly]

    New policies and new customers for the fiscal year ending November 30, 2023 [quarterly] Fiscal year ending November 30, Fiscal year ended November 30, 2022 QonQ 2023 Number Year-end of Percentage Item 1Q 2Q 3Q 4Q 1Q 2Q 3Q total increase/ change decrease Number of new policies 47,618 52,933 53,884 57

  44. Slide 44: Appendix

    05 Appendix Copyright ©ＦＰ Partner Inc. All Rights Reserved. 44

  45. Slide 45: Business concept

    Business concept We always stand by the customer’s side FP Partner Inc. and work with them to create a lifetime Consult with a long-term money plan together. perspective on the future. In addition to life insurance and non-life Our future ideal vision is to insurance, we offer consultations on all a

  46. Slide 46: 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 2,483 (as of August 31, 2023, excluding part-time employ

  47. Slide 47: 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

  48. Slide 48: Partner companies

    Partner companies We are generating a steady stream of Partner companies prospective customers by attracting customers from our partner companies. Attracting customers through joint ventures Number of customers attracted from in- Solicitation Joint venture house customer acquisitions Major _ au Fina

  49. Slide 49: Our strengths and features

    Our strengths and features We not only sell insurance, but also provide comprehensive services to meet the needs of Comprehensive consulting our customers. Improved productivity through the division of labor We offer a wide range of services between customer attraction and solicitation that go beyon

  50. Slide 50: Net sales, ordinary income, and net income [past five fiscal years]

    Net sales, ordinary income, and net income [past five fiscal years] Trends in net sales Unit: Millions of yen 30,000 122.4% 25,605 25,000 120.9% 20,919 20,000 105.1% 17,301 122.8% 16,463 15,000 13,406 Average growth rate over the past 10,000 four years 5,000 17.6% 0 November 2018 November 2019 Novem

  51. Slide 51: Business plan values

    Business plan values [Fiscal year ending November 30, 2023 (14th period) to fiscal year ending November 30, 2025 (16th period)] *This page is a continuation of the announcement made in January 2023. Business plan values will be updated and announced at the time of the announcement of financial resul

  52. Slide 52: Business plan values

    Business plan values [Fiscal year ending November 30, 2023 (14th period) to fiscal year ending November 30, 2025 (16th period)] *This page is a continuation of the announcement made in January 2023. Business plan values will be updated and announced at the time of the announcement of financial resul

  53. Slide 53: IR website information

    IR website information We provide our shareholders and investors with extensive IR information. We offer three types of content to help investors Key points deepen their understanding of the Company. Contains the Top Interview, a message from Representative Director and Web President Kuroki, as well

  54. Slide 54: 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

  55. Slide 55: Slide 55

FP Partner — Q3 FY2023 Earnings Presentation on 6ix