Premium Group Co., Ltd. · TSE:7199

Premium — 1H FY2020 Earnings Presentation

22 slides from Premium's earnings presentation, Nov 14, 2019

  1. Slide 1: Financial Results Presentation for 1H of FY Ending March 31, 2020

    Financial Results Presentation 決算説明資料 for 1H of FY Ending March 31, 2020 November 14, 2019 プレミアグループ株式会社 Premium Group Co., Ltd.

  2. Slide 2: Contents

    Contents ・Summary of Financial Results for 1H of FY Ending March 31, 2020 ・Appendix © Premium Group All Rights Reserved.

  3. Slide 3: Summary of Financial Results for 1H of FY Ending March 31, 2020

    Summary of Financial Results for 1H of FY Ending March 31, 2020 © Premium Group All Rights Reserved.

  4. Slide 4: Highlights from 1H of FY Ending March 31, 2020

    Highlights from 1H of FY Ending March 31, 2020  Existing businesses of credit finance and automobile warranty enjoyed strong growth as expected ■Credit finance and automobile warranty both enjoyed strong growth, as operating income hit ¥6,659 million (up 28.5% YoY) Performance ■Future revenue of ¥2

  5. Slide 5: Consolidated Performance for 1H of FY Ending March 31, 2020

    Consolidated Performance for 1H of FY Ending March 31, 2020 (Millions of yen) [Consolidated] [Consolidated] [Consolidated] Q2 FY ending Q2 FY ended YoY change FY ended March March 31, 2020 March 31, 2019 31, 2019 * Operating income 6,659 5,183 +28.5% 10,759 Operating expenses 5,742 4,741 +21.1% 10,0

  6. Slide 6: Credit Finance Business—Total Volume of New Loans

    Credit Finance Business—Total Volume of New Loans Total volume of new loans (Billions of yen) Q2 cumulative total volume increased 41.6% 90.9 YoY to ¥90.92 billion  ¥50.2 billion in Q2 alone (up 53.2% YoY) Auto loan PH  Soaring growth for 9 straight years  PH in 1H increased (¥136 million to ¥202

  7. Slide 7: Credit Finance Business: Loan Receivables

    Credit Finance Business: Loan Receivables (Billions of yen; %) Loan receivables 291.3 Delinquency rate (more than 3 months) Loan receivables in 1H is ¥291.3 billion 1H 226.7 28.5% increase YoY  Nearly broke through the ¥300 billion 188.9 mark  Double digit growth since foundation  Delinquency rat

  8. Slide 8: Credit Finance Business: Number of Network Stores

    Credit Finance Business: Number of Network Stores Number of credit (Companies) network stores 21,517 1H 19,357 Number of network stores in 1H: 17,667 21,517 companies 11.2% increase YoY  Increasing steadily since foundation  Continuing to focus on operating ratio Initiatives to increase network st

  9. Slide 9: Automobile Warranty Business: Total Volume of New Warranties

    Automobile Warranty Business: Total Volume of New Warranties (Millions of yen) Total volume of new warranties 2,245 1H total volume was ¥2,245 million 1H EGS 55.8% increase YoY Q2 alone ¥1,146 million in Q2 alone (up 62.1% YoY) EGS 469 1H total volume was ¥1,780 million for PFS only 1,441 23.3% incr

  10. Slide 10: 1H Financial Highlights (YoY)

    1H Financial Highlights (YoY)  Operating income hit ¥6,659 million (up 28.5% YoY)  Profit before tax jumped to ¥3,052 million (up 92.8% YoY) Operating income Profit before tax (millions of yen) (millions of yen) YoY change 6,659 YoY change 3,052 +28.5% +192.8% Q2 688 5,183 Q2 3,510 Q1 2,641 Q1 1,0

  11. Slide 11: Operating Income (P/L) by Segment

    Operating Income (P/L) by Segment (Millions of yen) 6,659 (+28.5%) 1H Figures in parentheses 301 (+297.1%) indicate YoY 5,183 1H operating income by segment totaled ¥6,659 1,784 4,443 76 million (+54.5%) 57 1,155 28.5% increase YoY 1,005  ¥3,510 million in Q2 alone (up 32.9% YoY)  Steady growth se

  12. Slide 12: Operating Expenses (PL) (YoY Comparison)

    Operating Expenses (PL) (YoY Comparison)  Operating expenses totaled ¥5,742 million (up 21.1% YoY)  SG&A expenses increased overall due to the acquisition of EGS [1H FY19] [1H FY20] (Millions of yen) Increase attributed to growth in credit finance business Percentage of operating income is shown i

  13. Slide 13: Full-Year Earnings Forecast

    Full-Year Earnings Forecast  YTD operating income stands at 48.7% of full-year forecast  YTD profit before tax stands at 97.2% of full-year forecast →Steady progress being made toward full-year earnings forecast announced on Aug. 8 Operating income Profit before tax (millions of yen) (millions of

  14. Slide 14: Other Topics

    Other Topics Decision concerning acquisition of treasury shares A resolution was passed on the acquisition of treasury shares at the meeting of the Board of Directors held on November 14, 2019. These shares will be utilized for share exchanges in future M&A deals, etc. Warranty product revisions In

  15. Slide 15: Appendix

    Appendix © Premium Group All Rights Reserved.

  16. Slide 16: Provision for Insurance Provision for Changes in Accounting Estimates

    Changes in Accounting Estimates Insurance assets* will be booked from the fiscal year ending March 31, 2020 because it is now possible to make reasonable forecasts of future insurance income related to insurance transactions in the mainstay credit finance business based on the insurance management s

  17. Slide 17: Revisions to Full-Year Earnings Forecast

    Revisions to Full-Year Earnings Forecast  Full-year profit before tax forecast revised upward to ¥3,141 million (announced Aug. 8)  Effect from changes in accounting estimates expected to be ¥1,670 million for the full-year  Upfront investment aimed at long-term growth will be executed as planned

  18. Slide 18: Company Profile

    Company Profile Name Premium Group Co., Ltd. Securities Code / Exchange 7199 / First Section of Tokyo Stock Exchange May 25, 2015 Established Note: G-ONE Credit Services Co., Ltd. (currently, Premium Financial Services, Co., Ltd.) was established in 2007. Head Office Roppongi First Building, 1-9-9 R

  19. Slide 19: Overview of Premium Group

    Overview of Premium Group Other businesses Automobile warranty business Operating income 2.5 % by business  Maintenance business 22.3 % (FY Ended March 31, 2019) ・ Services automobile repairs arising from warranty business  Overseas business ・ Business expansion outside Japan ■Automobile warranty

  20. Slide 20: B/S

    B/S （Thousand yen） 【Reference】 Q2 FY20 FY19 Q1 FY20 Compared to previous FY18 (As of September 30, QoQ (As of March 31, 2019) (As of June 30, 2019) quarter (As of March 31, 2018) 2019) Assets Cash and cash equivalents 6,343,582 6,186,088 5,420,578 6,787,439 109.7% 125.2% Financing receivables 10,793

  21. Slide 21: P/L (April 1 - September 30)

    P/L (April 1 - September 30) （Thousand yen） Q2 FY19 FY19 Q2 FY20 YoY Compared to previous quarter (April 1, 2018 - September 30, 2018) (April 1, 2018 - March 31, 2019) (April 1, 2019 - September 30, 2019) Operating income 5,182,994 10,759,236 6,658,562 128.5% 61.9% Other finance income 2,066 146,407

  22. Slide 22: P/L (July 1 - September 30)

    P/L (July 1 - September 30) （Thousand yen） Q2 FY19 Q1 FY20 Q2 FY20 YoY QoQ (July 1, 2018 - September 30, 2018) (April 1, 2019 - June 30, 2019) (July 1, 2019 - September 30, 2019) Operating income 2,641,405 3,148,563 3,509,999 132.9% 111.5% Other finance income 1,355 6,789 98,356 7260.0% 1448.8% Shar

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