Fp Partner, Inc. · TSE:7388
Fp Partner — Q3 FY2024 Earnings Presentation
56 slides from Fp Partner's earnings presentation, Oct 15, 2024
Slide 1: Financial Results Briefing Materials for the Nine Months Ended August 31, 2024
Financial Results Briefing Materials for the Nine Months Ended August 31, 2024 FP Partner Inc. October 15, 2024
Slide 2: Table of Contents
Table of Contents Financial Highlights for 01 the Nine Months Ended August 31, 2024 Targets of Priority Measures for 02 the Fiscal Year Ending November 30, 2024 Shareholder Returns and Dividend Policy for 03 the Fiscal Year Ending November 30, 2024 04 Business Plan 05 Data 06 Appendix Copyright © FP
Slide 3: Financial Highlights for the Nine Months Ended August 31, 2024
01 Financial Highlights for the Nine Months Ended August 31, 2024 Copyright © FP Partner Inc. All Rights Reserved. 3
Slide 4: Summary of Nine Months Ended August 31, 2024
Summary of Nine Months Ended August 31, 2024 ⚫ Strong sales of savings and investment products Record-high life insurance commission income of 9.48 billion yen (an increase of 1.58 billion yen year-on-year, +20.0%) recorded. ⚫ Materialize needs through financial planning The number of sales of level
Slide 5: Financial Highlights for the Nine Months Ended August 31, 2024
Financial Highlights for the Nine Months Ended August 31, 2024, Year-on-year Change Net sales rose 17.7% year-on-year. Although profits were lower than the previous year, each KPI is performing well. Net sales Operating profit Profit 26,982 million yen 4,438 million yen 3,126 million yen Year-on-yea
Slide 6: Revision of the Full-year Forecast and the Reasons for the Revision
Revision of the Full-year Forecast for the Fiscal Year Ending November 30, 2024 and the Reasons for the Revision The full-year earnings forecast has been revised and the year -end dividend forecast has been left unchanged based on the nine-month results and future outlook. (Unit: Millions of yen) Ne
Slide 7: Achievement Versus the Full-year Forecast
Financial Highlights for the Nine Months ended August 31, 2024 [Achievement Versus the Full -year Forecast] Progress rate toward the full-year forecast (Unit: Millions of yen) Results for the nine months Earnings forecast for the fiscal year ended August 31, 2024 50% 100% ending November 30, 2024 Ne
Slide 8: Number of Sales of Level-payment Products
Financial Highlights for the Nine Months Ended August 31, 2024 [Number of Sales of Level-payment Products] Number of sales of level-payment products (Unit: Number of policies) Long-term dispersed investments and 1 coverage sales proposals through financial planning 4Q 41,911 Number of sales of level
Slide 9: Quarterly Trends
Financial Highlights for the Nine Months Ended August 31, 2024 (Quarterly Trends) Net sales Operating profit / Ordinary profit Profit (Unit: Millions of yen) (Unit: Millions of yen) (Unit: Millions of yen) 10,000 9,841 2,000 1,901 1,500 1,750 1,275 9,000 1,500 8,807 1,394 1,362 1,324 1,357 1,000 938
Slide 10: 3Q KPI results
Financial Highlights for the Nine Months Ended August 31, 2024 3Q KPI results ⚫ 527 hires were made up to 3Q compared to the annual hiring target of 700 hires. ⚫ The number of prospective policy customers reached 39,980 (+2,248, 6.0%), From along with the increase in sales employees. June 2024 ⚫ Num
Slide 11: Earnings Model [Life and Non-life Insurance]
Earnings Model [Life and Non-life Insurance] In the case of life insurance Breakdown and trends of commission income from life insurance sales ⚫ The period of commission receipt varies from 5 to 10 First-year Ongoing years for each insurance company and product. commissions commissions Business qual
Slide 12: Quarterly Performance Trends [Life Insurance Commissions]
Quarterly Performance Trends [Life Insurance Commissions] Life insurance commissions income (Unit: Millions of yen) 9,488 Achieved record-high life insurance commission income for 3Q as well. 25 8,402 2,307 7,907 7,999 27 17 19 7,334 2,207 6,953 6,927 33 2,041 2,197 6,311 6,564 23 40 33 1,980 6,212
Slide 13: Revenue Structure Image
Revenue Structure Image When acquiring new policies under the A B same exact conditions In-house customer Customers attracted from attraction policy transfers partner companies A B In-house customer Customers attracted attraction policy from partner transfers companies Difference in profit amount Sp
Slide 14: New Policy Acquisition Flow
New Policy Acquisition Flow Results for the nine months ended August 31, 2024 Corresponding with the increase in the number of existing customers, acquisition of additional new policies also remained steady. Self-development Sales employees [Number of prospective policy customers] 39,980 [Net new cu
Slide 15: Number of Prospective Policy Customers (Quarterly)
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) The number of prospective policy customers is controlled 42,553 as the number of policy transfers increases. 39,518 4
Slide 16: Number of New Policies/Customers (Quarterly)
Key KPI Trends [Number of New Policies/Customers (Quarterly)] The number of new policies also increased due to strong prospective policy customers and policy transfers. Number of new policies Number of new customers (Unit: Number of policies) (Unit: Persons) Year-on-year change Year-on-year change 1
Slide 17: Number of Policies in Force (Quarterly)
Key KPI Trends [Number of Policies in Force (Quarterly)] Number of policies in force Number of existing customers (Unit: Number of policies) (Unit: Persons) Year-on- year +87,520 The number of policies in force Year-on- +286,622 Increase in existing customers year change (+15.4%) increased significa
Slide 18: 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. 18
Slide 19: 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, Respond to the high needs of
Slide 20: Number of Sales Employees, Hires, and Locations
Number of Sales Employees, Hires, and Locations ⚫ The number of applicants has been strong. Although there was a temporary lull in employees joining our company due to the impact of media coverage concerning our company, the situation has now recovered. ⚫ Because hiring in the first half exceeded th
Slide 21: Growth Strategy: Three Pillars
Growth Strategy for the Fiscal Year Ending November 30, 2024 Policy transfers We will significantly further develop three pillars that Non-life Money Doctor insurance will support future growth. Premier Copyright © FP Partner Inc. All Rights Reserved. 21
Slide 22: Expansion of Policy Transfer Business
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) ⚫ The number of inquiries has increased significantly from 60 companies in the same period of the previous year to 77 companies
Slide 23: Expansion of Policy Transfer Business: Earnings Mechanism
Priority Initiatives for the Fiscal Year Ending November 30, 2024 (1) Expansion of Policy Transfer Business Acquiring new customers Obtaining ongoing commissions 1 from transferred policies Profit occurs from first year of transfer Ongoing commissions Policy transfers agreed to Immediately … … … 10t
Slide 24: Expansion of Money Doctor Premier Business
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 store located. openings ⚫ Increase in sales of savings-type products
Slide 25: Money Doctor Premier: Bookings and New Policy 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 policy premium [ANP based] (Unit: Number of bookings) 5,000 (Unit: Millions of yen) 5,000 4,255 3,000 4,000 3,541 New policies are perfo
Slide 26: 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 Number of transfers of non-life insurance policies increased. We acquired a new customer base through expansion of service. Number of non- Non-life insurance commissions [May
Slide 27: Expansion of Business Domain - Maximization of LTV
Expansion of Business Domain - Maximization of LTV Maximize LTV of customers by handling financial products besides insurance LTV Inheritance planning Optimal overall solutions Understanding the current situation by FP Partner Asset management Planning and countermeasures Second life Preparation for
Slide 28: New Business [IFA Business]
New Business [IFA Business] The number of accounts and deposited assets rose steadily, centered on investment savings such as NISA, etc. Increased the number of IFA offices by 21 from the 2Q, and further expanded the sales network. [Securities accounts] [Balance of assets [IFA offices] [Number of re
Slide 29: New Business [Financial Literacy Education and Advertising Business]
New Business [Financial Literacy Education and Advertising Business] Financial literacy education business Through programs and training, we follow each individual’s learning so that they can consider their future plans and ideal lifestyles, and choose financial instruments accordingly. ⚫ Two new co
Slide 30: Money Doctor Recruitment Website Renewal
[Topics] Money Doctor Recruitment Website Renewal ⚫ Concise and easy-to-understand presentation of information that applicants want to know Improvement ⚫ Design completely renewed with a focus on in mobile display convenience ⚫ Enhanced content in line with various working for job styles, including
Slide 31: 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. 31
Slide 32: Proactive Shareholder Returns [Shareholder Benefits]
Proactive Shareholder Returns [Shareholder Benefits] Shareholder ⚫ Conducted twice a year: interim and year-end. benefits ⚫ Gift of a QUO card (worth 3,000 yen) each time. [Interim (May 31)] [Year-end (November 30)] QUO card QUO card worth worth 3,000 yen 3,000 yen Dec. Jan. Feb. Mar. Apr. May Jun.
Slide 33: Proactive Shareholder Returns [Dividends]
Proactive Shareholder Returns [Dividends] ⚫ An interim dividend of 45 yen per share was paid in August. Shareholder ⚫ Because downward revision of net profit is due to external factors and there is no change in returns the business model, the year-end dividend forecast remains unchanged at 47 yen pe
Slide 34: Business Plan
04 Business Plan Copyright © FP Partner Inc. All Rights Reserved. 34
Slide 35: Looking Toward the End of the Fiscal Year Ending November 30, 2024
Looking Toward the End of the Fiscal Year Ending November 30, 2024 Factors causing fluctuations this fiscal year Raised remuneration for sales employees ⚫ Increase in new cases due to improvement in ⚫ Costs of goods increased, and the gross motivation profit margin decreased. ⚫ Increase in the numbe
Slide 36: Outlook from 4Q
Looking Toward the End of the Fiscal Year Ending November 30, 2024 Outlook from 4Q End of the fiscal year ending From the fiscal year ending November 30, 2024 November 30, 2025 onward 1 We will verify the continuity of external factors ⚫ Based on performance for the second half ⚫ Increase in sales o
Slide 37: We always stand by the customer's side
We always stand by the customer’s side and work with them to create a lifetime money plan together. FP Partner Inc. Consult with a long-term perspective on the future. Our future ideal vision is to In addition to life insurance and non-life improve the financial literacy of everyone in insurance, we
Slide 38: Data
05 Data Copyright © FP Partner Inc. All Rights Reserved. 38
Slide 39: Income Statement for the Nine Months Ended August 31, 2024
Income Statement for the Nine Months Ended August 31, 2024 (Unit: Millions of yen) Nine months ended August 31, 2023 Nine months ended August 31, 2024 Ratio to Ratio to Year-on-year Change net sales net sales change Net sales 22,914 100.0% 26,982 100.0% 4,067 +17.7% Cost of sales 13,932 60.8% 17,450
Slide 40: Balance Sheet
Balance Sheet for the Fiscal Year Ending November 30, 2024 (Unit: Millions of yen) Change from the As of November 30, 2023 As of August 31, 2024 Change end of the previous year (%) Current assets 14,311 11,327 -2,983 -20.8% Cash and deposits 11,960 8,493 -3,466 -29.0% Non-current assets 4,839 6,611
Slide 41: Key KPIs [Quarterly Cumulative Period]
Key KPIs [Quarterly Cumulative Period] Fiscal year ended Fiscal year ended Fiscal year ending November 30, QonQ November 30, 2022 November 30, 2023 2024 Number of Item 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q increase/ decrease Number of policies in 1,023,413 1,076,346 1,131,058 1,189,907 1,240,784 1,323,28
Slide 42: Key KPIs [Quarterly Cumulative Period]
Key KPIs [Quarterly Cumulative Period] Fiscal year ended November 30, 2022 Fiscal year ended November 30, 2023 Fiscal year ending November 30, 2024 QonQ Number of Item 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q increase/ decrease Number of sales employees 1,890 1,962 2,007 2,014 2,068 2,166 2,215 2,326 2,402
Slide 43: Key KPIs (New Policies and New Customers)
Key KPIs (New Policies and New Customers) [Quarterly Cumulative Period] Fiscal year ended November 30, 2022 Fiscal year ended November 30, 2023 Fiscal year ending November 30, 2024 QonQ Number of Percentage Item 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q increase/ change decrease Number of new 47,618 52,933 5
Slide 44: Appendix
06 Appendix Copyright © FP Partner Inc. All Rights Reserved. 44
Slide 45: Company Profile
Company Profile Company name FP Partner Inc. Established December 2009 Representative Tsutomu Kuroki, Representative Director and President Nature of business Insurance agency Address 1-5-3, Koraku, Bunkyo-ku, Tokyo 112-0004 Number of employees 2,755 (as of August 31, 2024, excluding part-time emplo
Slide 46: 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 47: 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. Sale of investment trusts We offer a wide range of services that Comprehensive go beyond insurance. consulting Asset formation and inheritance planning ⚫ Utilization of
Slide 48: Partner Companies
Partner Companies Growing the number of customers attracted from partner companies while simultaneously Partner companies aiming to increase the number of policy Attracting customers through joint ventures transfers and customers attracted on our own FP consultations Joint venture Major Results for
Slide 49: 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 1,230,1
Slide 50: 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) 30,559 30,000 119.3% 122.4% 25,605 25,000 120.9% 20,919 20,000 105.1% 17,301 16,463 Average growth 15,000 rate over the past four years 10,000 5,000 16.7% 0 Fiscal year ended 2019年11月 Fiscal
Slide 51: Business Plan Values
Business Plan Values [Fiscal Year Ending November 30, 2024 (15th Period) to Fiscal Year Ending November 30, 2026 (17th Period)] Announced on January 15, 2024 Created a new three-year business plan using the rolling method. We will strive to expand net sales by increasing personnel, increasing the nu
Slide 52: Business Plan Values
Business Plan Values [Fiscal Year Ending November 30, 2024 (15th Period) to Fiscal Year Ending November 30, 2026 (17th Period)] Announced on January 15, 2024 Net sales Operating profit / Ordinary profit Profit (Unit: Millions of yen) (Unit: Millions of yen) (Unit: Millions of yen) 10,539 50,000 48,0
Slide 53: Business Plan Values: Business Expansion Measures
Business Plan Values [Fiscal Year Ending November 30, 2024 (15th Period) to Fiscal Year Ending November 30, 2026 (17th Period)] Announced on January 15, 2024 Business expansion Sales employee hiring target 700 （ Fiscal year ending November 30, 2024 ） measures 1 Organic growth 2 Hiring and education
Slide 54: IR Website Information
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 55: 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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