Premium Group Co., Ltd. · TSE:7199
Premium — Q3 FY2025 Earnings Presentation
38 slides from Premium's earnings presentation, Feb 7, 2025
Slide 1: Financial Results Presentation for Q3 of FY Ending March 31, 2025
Premium Group Co., Ltd. TSE Prime Section: 7199 Financial Results Presentation for Q3 of FY Ending March 31, 2025 February 7, 2025 1
Slide 2: Agenda
01 Financial Highlights 02 Summary of Financial Results 03 Finance Segment 04 Automobile Warranty Segment 05 Auto Mobility Segment 06 Car Premium Club 07 Other Progress 08 Appendix Access videos of our financial results presentations (JP) on our IR website at https://ir.premium-group.co.jp/en/librar
Slide 3: Agenda
01 Financial Highlights 02 Summary of Financial Results 03 Car Premium 04 Finance Segment 04 Automobile Warranty Segment 05 Auto Mobility Segment 06 Appendix 07 Other Progress 08 Appendix 3
Slide 4: Highlights from Q3 of FY Ending March 31, 2025 (1)
Highlights from Q3 of FY Ending March 31, 2025 (1) • Operating revenue up 19.4% thanks to the accumulation of loan receivables/automobile warranties • Operating profit rose by 36.3% YoY owing to an increase in membership fees for the Car Premium Club* and a reduction in expenses of each business • F
Slide 5: Highlights from Q3 of FY Ending March 31, 2025 (2)
Highlights from Q3 of FY Ending March 31, 2025 (2) • The new car market fell YoY dragged down by fraud involving the approval of type designations discovered in 1Q. Used vehicle market is trending sideways • Total volume of new loans continues to grow at double digits driven by improved operating ra
Slide 6: Summary of Financial Results
01 Financial Highlights 02 Summary of Financial Results 03 Finance Segment 04 Automobile Warranty Segment 05 Auto Mobility Segment 06 Car Premium Club 07 Other Progress 08 Appendix 6
Slide 7: Consolidated Performance
Consolidated Performance (Millions of yen) • Operating revenue increased 19.4% YoY to ¥27,429 million due to the accumulation of loan receivables and automobile warranty balances • Operating profit rose 36.3% YoY to ¥6,009 million and profit before tax rose 35.8% to ¥6,048 million FY24 Q3 FY25 Q3 Yo
Slide 8: Operating Expenses (Breakdown)
Operating Expenses (Breakdown) (Millions of yen) • Despite an increase in expenses due to business expansion, operating expenses remained low at a 15.4% YoY increase compared to a 19.4% increase in operating revenue FY24 Q3 Operating expenses FY25 Q3 Operating expenses ¥18,567 million ¥21,420 millio
Slide 9: Full-Year Performance Outlook
Full-Year Performance Outlook (Millions of yen) • Both operating revenue and profit before tax progressing according to full-year forecast • Quarterly performance set to increase gradually from the continued accumulation of loan receivables/automobile warranties Operating revenue Profit before tax 4
Slide 10: Finance Segment
01 Financial Highlights 02 Summary of Financial Results 03 Finance Segment 04 Automobile Warranty Segment 05 Auto Mobility Segment 06 Car Premium Club 07 Other Progress 08 Appendix 10
Slide 11: Total Volume of New Loans/Loan Receivables
Finance segment Total Volume of New Loans/Loan Receivables (Billions of yen) • Total volume of new loans continues to grow at double digits driven by improved operating rates at Car Premium Dealers and increased transactions at major dealerships • Significant growth in loan volume in FY24 and growth
Slide 12: Segment Performance (Finance)
Finance segment Segment Performance (Millions of yen) • Despite the upward trend in interest rates, the credit gross margin*1 remained at the previous year’s level after passing on higher interest rates to customers. • As a result of loan receivables growing 22.9% YoY, operating revenue, operating p
Slide 13: Automobile Warranty Segment
01 Financial Highlights 02 Summary of Financial Results 03 Finance Segment 04 Automobile Warranty Segment 05 Auto Mobility Segment 06 Car Premium Club 07 Other Progress 08 Appendix 13
Slide 14: Total Volume of New Warranties
Automobile warranty segment Total Volume of New Warranties (Billions of yen) • Total volume of new warranties is on a recovery track owing to an increase in the use of auto loans in conjunction with warranties along with an increase in the number of Car Premium Dealer memberships • High-margin produ
Slide 15: Segment Performance (Automobile Warranty)
Automobile warranty segment Segment Performance (Millions of yen) • Expansion of Car Premium Club services has kept member turnover low and led to growth in our high-margin products developed in-house • Cost reduction was achieved by strongly encouraging the use of the company’s network garages and
Slide 16: Auto Mobility Segment
01 Financial Highlights 02 Summary of Financial Results 03 Finance Segment 04 Automobile Warranty Segment 05 Auto Mobility Segment 06 Car Premium Club 07 Other Progress 08 Appendix 16
Slide 17: Segment Performance (Auto Mobility)
Auto mobility segment Segment Performance (Millions of yen) • Each core business has grown steadily, and operating profit has been strong, up 31.0% YoY • The price revision of the Car Premium Club membership fee implemented in FY23 will continue to secure stable revenue in the future • Seeking to gr
Slide 18: Car Premium Club
01 Financial Highlights 02 Summary of Financial Results 03 Finance Segment 04 Automobile Warranty Segment 05 Auto Mobility Segment 06 Car Premium Club 07 Other Progress 08 Appendix 18
Slide 19: Progress in Car Premium Club Memberships
Car Premium Club Progress in Car Premium Club Memberships (Unit: companies/stores) • For Car Premium Dealer, we focused on preventing turnover and acquiring new members, and as a result, membership numbers are steadily increasing • The number of Diamond members increased by 185 through strong upsell
Slide 20: Other Progress
01 Financial Highlights 02 Summary of Financial Results 03 Finance Segment 04 Automobile Warranty Segment 05 Auto Mobility Segment 06 Car Premium Club 07 Other Progress 08 Appendix 20
Slide 21: Other Progress
Other Progress (Unit: companies/stores) Medium-Term Management Plan (MTP)* Click here for details of Medium-Term Management Progress (Second Year) Plan, ONE & ONLY 2026 Car Premium Club Memberships • In the first year of the MTP, operating revenue reached ¥31.5 billion and profit Car Premium Dealer
Slide 22: Appendix
01 Financial Highlights 02 Summary of Financial Results 03 Finance Segment 04 Automobile Warranty Segment 05 Auto Mobility Segment 06 Car Premium Club 07 Other Progress 08 Appendix 22
Slide 23: 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, Tok
Slide 24: Description of Business
Description of Business • Premium Group is an auto mobility company offering customers a vibrant car life alongside our network of car dealers and garages. Business Segment Portfolio by Segment Automobile Auto Mobility Finance 25% Finance Warranty 50% Auto Mobility (FY2026) Main business Main busine
Slide 25: Our DX Strategy
Our DX Strategy • In September 2024, we revamped our DX strategy first formulated in May 2021. • We aim to strengthen the foundation for promoting DX by developing DX talent, building organizations, updating IT core systems, and strengthening information security, while also creating new businesses
Slide 26: Segments in FY2025
Segments in FY2025 • Premium Auto Parts Co., Ltd., which was under the automobile warranty segment, was transferred to the auto mobility segment. • CIFUT Co., Ltd., which was the under auto mobility segment, was transferred to the finance segment. • The Car Premium business model will continue to un
Slide 27: Performance by Segment
Performance by Segment (Millions of yen) • Operating revenue and profit before tax increased over FY2024 as a result of the steady growth of each segment Operating revenue Q3 FY25 Finance Automobile warranty Auto mobility Operating Operating Profit before revenue profit tax 6,786 Finance 15,464 4,33
Slide 28: Summary of New Medium-Term Management Plan ONE & ONLY 2026
Summary of New Medium-Term Management Plan ONE & ONLY 2026 Medium-Term Vision Establishing the Car Premium business model, seeking to become the ONE & ONLY auto mobility company Numerical Targets (FY2026) Profit attributable to Operating revenue Profit before tax owners of parent ROE Market cap ¥44.
Slide 29: Medium-Term Management Plan: Numerical Targets
Medium-Term Management Plan: Numerical Targets —Management Indicators— Operating revenue (Billions of yen) Profit before tax (Billions of yen) Finance Profit before tax Profit attributable to owners of parent Automobile warranty Mobility 66.0 Other Profit before tax (forecast) 15.3 Achieved Operatin
Slide 30: Our Actions to Address Changes in the External Environment
(FY23 Q3) Our Actions to Address Changes in the External Environment • Exchange rates: Very small number of transactions in foreign currency Little to no impact on earnings • Agilely responding to rising interest rates and inflation (1) FX fluctuations (3) Rising interest rates Interest rates for fu
Slide 31: Released Car Premium Anshin Shop
(FY 24 Q3) Released Car Premium Anshin Shop • Launched Car Premium Anshin Shop, a program that allows customers to access products and services with peace of mind, on Jan. 29, 2024 What is Car Premium Anshin Shop? Details of peace of mind guarantee and services An outlet that provides services that
Slide 32: Other Indicators
Finance segment Other Indicators Car Premium Dealer Number of sales staff AI credit screening rate Ratio of auto credit*1 Up 6.4 pts YoY Down 1 YoY* 2 Down 2.0 pts YoY* 44.5% 98 38.1％* Maintaining strong growth Not planning to increase sales staff Further increase screening accuracy to underpinned b
Slide 33: BS (Millions of yen)
BS (Millions of yen) Compared to FY2024 FY2025.Q2 FY2025.Q3 the end of QoQ (As of March 31, 2024) (As of September 30, 2024) (As of December 31, 2024) previous period Assets Cash and cash equivalents 21,150 18,276 18,147 △14.2% △0.7% Financing receivables 56,419 62,127 66,467 +17.8% +7.0% Other fina
Slide 34: P/L (Consolidated Cumulative Period)
P/L (Consolidated Cumulative Period) (Millions of yen) FY2024.Q1-Q3 FY2025.Q1-Q3 (April 1 - December 31) YoY (April 1, 2023 - December 31, 2023) (April 1, 2024 - December 31, 2024) Operating revenue 22,975 27,429 +19.4% Operating expenses 18,567 21,420 +15.4% Operating profit 4,408 6,009 +36.3% Shar
Slide 35: P/L (Consolidated Cumulative Period/Operating Revenue/Operating Expenses)
P/L (Consolidated Cumulative Period/Operating Revenue/Operating Expenses) (Millions of yen) FY2024.Q1-Q3 FY2025.Q1-Q3 (April 1 - December 31) YoY (April 1, 2023 - December 31, 2023) (April 1, 2024 - December 31, 2024) Operating revenue Finance income 11,029 12,973 +17.6% Warranty revenue 4,355 5,093
Slide 36: P/L (Consolidated Accounting Period)
P/L (Consolidated Accounting Period) (Millions of yen) FY2025.Q2 FY2025.Q3 FY2023.Q3 (October 1 - December 31) (July 1, 2024 - September 30, (October 1, 2024 - December YoY QoQ (October 1, 2023 - December 31, 2023) 2024) 31, 2024) Operating revenue 7,919 9,418 9,337 +17.9% △0.9% Operating expenses 6
Slide 37: P/L (Consolidated Accounting Period/Operating Revenue/Operating Expenses)
P/L (Consolidated Accounting Period/Operating Revenue/Operating Expenses) (Millions of yen) FY2025.Q2 FY2025.Q3 FY2023.Q3 (October 1 - December 31) (July 1, 2024 - September 30, (October 1, 2024 - December YoY QoQ (October 1, 2023 - December 31, 2023) 2024) 31, 2024) Operating revenue Finance income
Slide 38: Forward looking statements
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