Aeon Financial Service Co., Ltd. · TSE:8570
Aeon Financial Service — Q3 FY2020 Earnings Presentation
28 slides from Aeon Financial Service's earnings presentation, Jan 13, 2021
Slide 1: FY2020 Third Quarter IR Presentation Material
FY2020 Third Quarter IR Presentation Material January 13, 2021 AEON Financial Service Co., Ltd.
Slide 2: Key points of the announcement of this financial results
Key points of the announcement of this financial results Q3 Earnings Summary ➢Consolidated financial results for the third quarter were increased income and decreased profit ➢Consolidated operating income for the third quarter alone(excluding the impact of consolidation of insurance companies) and o
Slide 3: Agenda
1. Consolidated results by segments 2. Consolidated results by area 3. Impact of covid-19 and main initiatives 4. Revision of full-year earnings forecast AEON Financial Service Co., Ltd.
Slide 4: 1. Consolidated results by segments
(Unit：Billions 1. Consolidated results by segments of yen） Domestic Global Consol. (Unit：Billions of yen） Total Retail Solution Total Total Mekong ※1 ※2 ※2 ※1 ※3 China Area Area Malay Area Operating Revenue 258.5 169.0 136.6 103.5 12.0 56.3 35.1 361.5 YoY 107％ 112％ 94％ 91％ 85％ 91% 92％ 102％ Change +1
Slide 5: Business performance excluding impact of consolidation of insurance companies
1. Consolidated results by segments - Business performance excluding the impact of consolidation of insurance companies ■ P/L was consolidated from the second quarter of this fiscal 【Figures for the impact（Domestic Business)】 year due to the consolidation of insurance companies. (Unit：Billions of ye
Slide 6: Quarterly performance trends in Domestic and Global business
1. Consolidated results by segments - Quarterly Performance trends in Domestic and Global business Domestic Global Consolidated Operating Operating Operating Operating Operating Operating Operating Operating Operating （bn） （bn） （bn） revenue expenses profit revenue expenses profit revenue expenses pr
Slide 7: Factors contributing to increase or decrease in profit by area
1. Consolidated results by segments - Factors contributing to increase or decrease in profit by area Domestic Global Operating profit ▲¥9.1bn Operating profit ▲¥9.5bn Operating Operating Excluding the impact of consolidation of revenue expense insurance companies +¥37.0bn +¥37.1bn Other, Operating O
Slide 8: Consolidated balance sheet
1. Consolidated results by segments - Consolidated balance sheet Consolidated results Change from Topics ※（）:Change from start of FY Results start of FY （Unit：Billions of yen） ・Domestic balance：¥542.9bn (-¥173.1bn) *including holding company Cash and deposits 587.3 △175.5 → Increase in outstanding m
Slide 9: 2. Consolidated results by area - Domestic
2. Consolidated results by area ■Transaction volumes remained on a recovery trend from the second quarter, and the decrease in the balance of finance receivables is generally bottom-out. Q3 Comulative Q3 Balance of (unit：billion yen） Transaction YoY Transaction YoY operating Increase or (Compared to
Slide 10: Domestic Card Shopping Volume Trends
2. Consolidated results by area - Domestic Card Shopping Volume Trends ■ Credit card purchase: Due to the impact of consumption tax hike ( Oct. 1, 2019), transaction volumes fell the year-on-year rate of change in September, but in October increased in rebound ■ Cash advance: There are effects such
Slide 11: Domestic Card Shopping Volume Trends by industry
2. Consolidated results by area - Domestic Card Shopping Volume Trends ■ Life-related industries performed well. On the other hand, industries that have a large impact on self-restraint are sluggish. Year-on-year change in volume by industry and business type Food supermarkets, Mail-order shopping F
Slide 12: Trends in transactions and outstanding receivables (Domestic)
2. Consolidated results by area - Trends in various transactions and outstanding receivables (Domestic) ■ In card shopping and cashing, the pace of decline in balances slowed due to an increase in transaction volumes. Installment finance and housing loans firmly accumulated the outstanding of receiv
Slide 13: Trends in transactions and outstanding receivables (Global)
2. Consolidated results by area - Trends in various transactions and outstanding receivables (Global) ■ Along with the recovery in economic activity, sales of goods (credit card purchase, installment finance) improved. Loans were temporarily revised from the third quarter to stricter examination sta
Slide 14: Trends in finance receivables (Global)
2. Consolidated results by area - Trends in finance receivables (Global) ■ Mainly in the first quarter, expenses related to bad debts in preparation for future risks increased, including deferred repayment receivables. ■ Since the second quarter, the collection of deferred repayment receivables in T
Slide 15: Impact of COVID-19 and main initiatives
Impact of COVID-19 and main initiatives AEON Financial Service Co., Ltd.
Slide 16: 3. Effects of the COVID-19
3. Effects of the COVID-19 ・Behavioral regulations and business conditions weak medium strong ・Repayment grace measures impact period ・Resumption of billing ※Description of the situation in areas other than Laos and Vietnam with minor impacts Operating Others (regulations, MAR APR MAY JUN JUL AUG SE
Slide 17: Effects of the COVID-19
1. Effects of the COVID-19 Operating Others (regulations, MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN business conditions) area Apr. 14 “Infected area ・Repayment grace target lockdoawn Partial relaxation of regulations(Time reduction of night curfew) ：Other(Low-risk customers Myanmar ” (night (our j
Slide 18: 3. Main initiatives - Domestic
3. Main initiatives - Domestic ■ Develop direct and indirect channels to meet consultation and application needs ■ Promote cashless payments by encouraging the spread of touch payments Stores that take anti-epidemic considerations Online consultation ・Facilities for TV Customer consultation and ➢can
Slide 19: 3. Main initiatives - Global
3. Main initiatives - Global ■ Enclosing the top customer base through partnerships with leading external companies ■ Strengthen cooperation with local AEON Group retailers Partnering with leading external Strengthening collaboration with the companies AEON Group 【Thailand】 Partner with top companie
Slide 20: 3. Main initiatives - Global
3. Main initiatives - Global ■ Accelerate online access to key products and services China Area Mekong Area Malay Area HK CN TH KH VD MM LA MY PH ID IN Credit card ◎ ◎M ◎ ◎ ○ Personal loans ◎ ◎ ○ ○ ◎ ◎ ◎ Installment finance ◎ ◎ ○ ◎ ○ ○ ○ ◎ ◎ ◎ ◎：Customer-made apps or web supported 〇：Planning for cus
Slide 21: 3. Main initiatives - Domestic and Global
3. Main initiatives - Domestic and Global ■ Reduce screening time and improved accuracy by utilizing identity verification (eKYC) ■ Introduction of remote work and remoteization of sales structure Optimization of screening Remoteization of sales structure 【Domestic】 Group companies introduce remote
Slide 22: Revision of full-year earnings forecast
Revision of full-year earnings forecast AEON Financial Service Co., Ltd.
Slide 23: Full-year earnings forecast - Progress against company plans
4. Full-year earnings forecast - Progress in performance against company plans ■ Consolidated financial results for the third quarter were higher than previously expected. ■ The revised forecast continues the range format in view of concerns about the spread of infectious diseases in the third wave.
Slide 24: Full-year earnings forecast - Full-year FY2020
4. Full-year earnings forecast - (Unit:Yen) Full-year FY2020 Profit attributable Operating Operating Ordinary to owners of revenue profit profit parent Previous 10.0－ 10.0－ 5.0－ 460.0bn Forecast (A) 20.0bn 20.0bn 10.0bn Forecast 27.0－ 27.0－ 11.0－ 470.0bn this time (B) 33.0bn 33.0bn 14.0bn 13.0－ 13.0
Slide 25: (Reference) FY2020 Q3 Results (Hong Kong, Thailand, Malaysia)
(Reference) FY2020 Q3 Results (Hong Kong, Thailand, Malaysia) FY2019 Q3 FY2020 Q3 Results YoY Results YoY AEON Revenue 974,565 99％ 839,595 86％ CREDIT SERVICE (ASIA) Profit before tax 336,630 84％ 275,257 82％ (HK$’000) Profit for the period 278,864 84％ 230,371 83％ AEON Total Revenues 17,136,042 115％ 1
Slide 26: (Reference) FY2020 Q3 Results (Hong Kong, Thailand, Malaysia)
(Reference) FY2020 Q3 Results (Hong Kong, Thailand, Malaysia) ■ Consolidated Results of AEON Credit Service (Asia) Co., Ltd. (Unit:Billions of yen) FY2019 Q3 FY2020 Q3 Results Results YoY Exchange rates: HKD 1 ・FY2019 Q3 ：¥13.94 Operating income 13.5 11.5 85% ・FY2020 Q3 ：¥13.73 Operating profit 4.6
Slide 27: (Reference) Allowance for Doubtful Accounts and Loss on Refund of Interest
(Reference) Allowance for Doubtful Accounts and Allowance for Loss on Refund of Interest Received by Segment ■ Allowance for Doubtful Accounts (by Segment) ■ Allowance for Loss on Refund of Domestic Interest Received Retail Solutions Total FY2019 Q3 FY2020 Q3 Allowance for doubtful accounts, ¥2.8bn
Slide 28: 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 — Q3 FY2020 Earnings Presentation on 6ix