Aeon Financial Service Co., Ltd. · TSE:8570
Aeon Financial Service — FY2018 Earnings Presentation
27 slides from Aeon Financial Service's earnings presentation, May 13, 2019
Slide 1: AEON Financial Service Co., Ltd.
AEON Financial Service Co., Ltd. 1
Slide 2: Agenda
1. Consolidated business outline 2. Consolidated results 3. Future direction 4. FY2019 Main initiatives 5. FY2019 Consolidated forecasts AEON Financial Service Co., Ltd. 2
Slide 3: Consolidated business outline
Consolidated business outline Domestic Global Credit card ➊ Credit card ➋ (Unit: billions of yen) Installment Housing Installment Personal Shopping sales loan (※1) sales ➌ loan Cash advance Shopping Cash advance Transaction volume 5,358.2 405.8 241.7 499.2 260.1 135.1 104.7 161.3 YoY +8.1％ +4.3％ -4.
Slide 4: Consolidated business outline - Expansion of customer base
Consolidated business outline - Expansion of customer base ■ Expansion of customer base through collaboration with external merchants U-25 New Life Support Campaign Enrollment period：from Mar 1. 2019 to Apr 30. 2019 Period to use ：from Mar 1. 2019 to May 31. 2019 （High） ・5% cash back on the card pay
Slide 5: Consolidated business outline - Effect of point measures
Consolidated business outline - Effect of point measures ■ AEON Card as the Main Card Transaction Volume Within and Outside Average Use Per Month AEON Group Stores (Billions of yen) （件） ■Outside AEON Group 400 ■AEON Group YoY +11% 10.5 350 300 10 250 200 9.5 150 100 9 50 0 8.5 0 '16年3月 Mar 2016 '17年
Slide 6: Consolidated business outline - Use of the membership program
Consolidated business outline - Use of the membership program ■Expansion of cross selling by revision of point program Revision of point program Change in bal. of deposit ・deposit cost on AEON bank （Changes due to the revision） Savings ・ From 3 stages to 4 stages Term Deposit Deposit yields 預金利回り ・P
Slide 7: Consolidated business outline – use of Digital/AI Technology
Consolidated business outline – use of Digital/AI Technology ■Improve convenience level of products/ services and labor productivity Repairment of credit card magnet stripe by ATM （Unit：K） No. of reissue of credit card ■ Improve convenience level of products / 30 services for customers YoY(March) （D
Slide 8: Consolidated results
Consolidated results (Unit：Billions Domestic total Global total Conso. of yen） Mekong Adjustments Total ※ Retail Solutions ※ China Area Area Malay Area Ordinary income 298.4 188.9 181.7 139.2 19.6 72.5 47.0 -70.9 439.0 YoY +7％ +7％ +6％ +12％ +1％ +13％ +17％ +11％ +8％ Change +19.2 +11.6 +10.7 +15.4 +0.1 +
Slide 9: Domestic/Global segment results by graph
Domestic/Global segment results by graph Consolidated Domestic Global adjustments Ordinary Profit +¥0.5bn Ordinary Profit + ¥6.1bn Consolidated Ordinary Income Ordinary Expenses Ordinary Income Adjustments (※) +¥19.2bn +¥18.7bn +¥15.4bn Ordinary Expenses - ¥2.6bn +¥9.2bn Ordinary ・Holding company, P
Slide 10: Consolidated balance sheet
Consolidated balance sheet Consolidated results Results Change from Topics ※（）:Change from start of FY （Unit：Billions of yen） start of FY Cash and deposits 644.5 -5.9 ・Domestic balance：¥602.2bn (-¥9.3bn) →Decrease due to piling up balance of finance receivables Loan and bills discounted 2,429.7 +158
Slide 11: Progress and schedule of system/IT investments
Progress and schedule of system/IT investments Purpose Results‘ Main investments in FY2018 (Total amount ¥34.4bn, 99% of plan) Improve ・ operation efficiency ( Introduction of AI-chat service and RPA) convenience Improvement of Domesti ・Infrastructure preparation for actual implementation of new lev
Slide 12: Change in the financial structure due to being a business company
Change in the financial structure due to being a business company ■ Consolidation of funding functions （finance from bank ・issue of bonds/CP ・securitization） ■FY2019 Funding Plan ■Effect ①Unified external funding in domestic ・Reduce funding cost, Integration of HQ financial functions ・ finance from
Slide 13: Future direction
Future direction AEON Financial Service Co., Ltd. 13
Slide 14: Vision for 2025: No. 1 retail financial services company in Asia
Vision for 2025 “To be the No. 1 retail financial services company in Asia” AFS 300 mil IDs AEON External partners Group AEON Financial Service Co., Ltd. 14
Slide 15: New organizational structure from FY2019
New organizational structure from FY2019 Business company group Business company AEON Financial Service Bank-holding company Overseas Domestic subsidiaries subsidiaries AFS Corporation Global Domestic AEON Housing Overseas ・Adver. &Promotion AEON Bank ・Point service Loan Service Subsidiaries ・Car sa
Slide 16: FY 2019 Main initiatives
FY 2019 Main initiatives AEON Financial Service Co., Ltd. 16
Slide 17: Global Business: initiatives for improving profitability
Global Business： initiatives for improving profitability ■Expansion of the top line while controlling costs Improve efficiency of credit screening /management with use of AI base Application for Check Confirm application Credit 【 example of initiatives 】 document external details screening/sc credit
Slide 18: Global business: ID expansion by mobile terminal
Global business : ID expansion by mobile terminal ■Provide any products and service by mobile apps China Area Mekong Area Malay Area Countries in which we operate The Hong Kong China Thailand Cambodia Vietnam Myanmar Laos Malaysia Indonesia India Philippines AEON operation ● ● ● ● ● ● ● ● （SM） Credi
Slide 19: Global business: Enhancement of cashless initiatives
Global business : Enhancement of cashless initiatives Promotion of cash-less by Aeon Group Expand customer base and transaction volume through collaboration with partner companies Enhancement of the function of the smartphone application “AEON Wallet" AEON Financial Service Co., Ltd. 19
Slide 20: Domestic business: Enhancement of the function of AEON Wallet
Domestic business：Enhancement of the function of “AEON Wallet" ■AEON card functions and related transactions are available in the app AEON Wallet Add application and payment function to the app (plan) One to One marketing Cost for posting Promote cross selling CO2 Exhaust Capacity Timely confirmatio
Slide 21: Sustainable growth by resolving social issues
Sustainable growth by resolving social issues FY2018 FY2019 【Auto loan business utilizing IoT】 Philippines and Indonesia Engine remote control by IoT devices Taxi Association guarantees driver repayment→ Provide a product/service to drivers who is capable of solvency but does not pass credit scr
Slide 22: FY2019 Plan and schedule of system/IT investments
FY2019 Plan and schedule of system/IT investments Main initiatives Main investments in FY2019 (Total amount ¥30.0bn) Mobile app: Addition of asset management and payment function Digital Shift 【To improve quality of Expansion of fee business and development of new products products/ services】 Domest
Slide 23: FY2019 Consolidated forecasts
FY2019 Consolidated forecasts ■The accounting period was changed from the fiscal year ending March to the end of February (※1) FY2019 ( from Apr 1. 2019 to Feb 29. 2020) (Reference ※3) Interim Full term 12 Months (Cumulative) (11months) Conversion value Operating income(※2) ¥225.0bn ¥430.0bn ¥470.0b
Slide 24: (Reference) FY 2018 Results (Hong Kong, Thailand, Malaysia)
(Reference) FY 2018 Results (Hong Kong, Thailand, Malaysia) FY2017 FY2018 Results YoY Results YoY Total Revenue (※2) 1,337,034 +2％ 1,375,751 +3% AEON CREDIT SERVICE Profit before tax 447,265 +22％ 524,122 +17% (ASIA) Profit for the period attributable to : 371,148 +24％ 437,254 +18% (HK$’000) Owners o
Slide 25: (Reference) FY2018 Results (Hong Kong, Thailand, Malaysia)
(Reference) FY2018 Results (Hong Kong, Thailand, Malaysia) (Unit:Billions of yen) ■ Consolidated Results of AEON Credit Service (Asia) Co., Ltd. FY2017 FY2018 Exchange rates: HKD 1 ・FY2017 ：¥14.27 Results Results YoY ・FY2018 ：¥14.08 Ordinary income 19.0 19.3 +2% Fiscal period Ordinary profit 6.3 7.3
Slide 26: (Reference) Allowance for Doubtful Accounts and Allowance for Loss on Refund of Interest Received
(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 FY2017 FY2018 Allowance for doubtful accounts, balance at be
Slide 27: Forward-looking statements
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 — FY2018 Earnings Presentation on 6ix