Premium Group Co., Ltd. · TSE:7199
Premium — 1H FY2025 Earnings Presentation
38 slides from Premium's earnings presentation, Oct 25, 2024
Slide 1: Financial Results Presentation for 1H of FY Ending March 31, 2025
TSE Prime Section: 7199 Premium Group Co., Ltd. Financial Results Presentation for 1H of FY Ending March 31, 2025 October 25, 2024 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/library
Slide 3: 01 Financial Highlights
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 3
Slide 4: Highlights from 1H of FY Ending March 31, 2025 (1)
Highlights from 1H of FY Ending March 31, 2025 (1) • Operating revenue up 20.2% thanks to the accumulation of loan receivables/automobile warranties • Operating profit rose by 46.6% 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 1H of FY Ending March 31, 2025 (2)
Highlights from 1H 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 • Double-digit growth in total volume of new loans thanks to increased applications mainly fro
Slide 6: 02 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 20.2% YoY to ¥18,092 million due to the accumulation of loan receivables and automobile warranty balances • Operating profit rose 46.6% YoY to ¥4,050 million and profit before tax rose 44.3% to ¥4,076 million FY24 1H FY25 1H 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 14.2% YoY increase compared to a 20.2% increase in operating revenue • While raising base pay above the level of other companies, human capital ROI* is o
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: 03 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) • Double-digit growth in total volume of new loans thanks to increased applications mainly from Car Premium Dealer • Significant growth in loan volume in FY23 and growth in FY24 helped maintain double-digit growth (up 23.0%
Slide 12: Finance Segment Performance
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 23.0% YoY, operating revenue, operating pr
Slide 13: 04 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 continued to grow at double digits, as volume of products developed in-house was up 27.3% YoY while actively encouraging network stores to become Car Premium Club members, which offset the w
Slide 15: Automobile Warranty Segment Performance
Automobile warranty segment Segment Performance (Millions of yen) • Conversion of network stores to Car Premium Club has led to growth in our high-margin products developed in-house • Continuous cost reduction is achieved by encouraging the use of the company's network garages and increasing the use
Slide 16: 05 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: Auto Mobility Segment Performance
Auto mobility segment Segment Performance (Millions of yen) • Each business has grown steadily, and operating profit has been strong, up 49.5% YoY • Expecting to grow the Auto Mobility segment through expansion of services for Car Premium Club members and greater visibility of the Car Premium brand
Slide 18: 06 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 Memberships
Car Premium Club Progress in Car Premium Club Memberships (Unit: companies/stores) • Car Premium Dealer refocused on acquiring new memberships, while also continuing to carefully select and restructure network stores and upsell membership levels. • The number of top level Diamond members increased b
Slide 20: 07 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 before income taxes
Slide 22: 08 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 / 7199 / Prime Market of Tokyo Stock Exchange 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 Services Finance Warranty 25% 50% Auto Mobility Services (FY26) Main busi
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 FY2023 as a result of the steady growth of each segment Operating revenue FY25 1H Finance Automobile warranty Auto mobility Operating Operating Profit before revenue profit tax 4,441 Finance 10,245 3,02
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 Operating Profit before tax 15.3 revenue (forecast)
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 • Agilely responding to rising interest rates and inflation Little to no impact on earnings (1) FX fluctuations (3) Rising interest rates Interest rates for fu
Slide 31: Released Car Premium Anshin Shop
(FY24 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 g
Slide 32: Finance Segment Other Indicators
Finance segment Other Indicators Car Premium Dealer Number of sales staff AI credit screening rate Ratio of auto credit*1 Up 3.4 pts YoY Down 3 YoY* 2 Down 2.0 pts YoY 42.0% 99 38.1% Intend to continue increasing in the future Not planning to increase sales staff Further increase screening accuracy
Slide 33: BS (Millions of yen)
BS (Millions of yen) Compared to FY2024 FY2025.Q1 FY2025.Q2 the end of QoQ (As of March 31, 2024) (As of June 30, 2024) (As of September 30, 2024) previous period Assets Cash and cash equivalents 21,150 18,267 18,276 △13.6% +0.0% Financing receivables 56,419 58,494 62,127 +10.1% +6.2% Other financia
Slide 34: P/L (Consolidated Cumulative Period)
P/L（Consolidated Cumulative Period） (Millions of yen) FY2024.Q1-Q2 FY2025.Q1-Q2 (April 1 - September 30) YoY (April 1, 2023 - September 30, 2023) (April 1, 2024 - September 30, 2024) Operating revenue 15,056 18,092 +20.2% Operating expenses 12,293 14,042 +14.2% Operating profit 2,763 4,050 +46.6% Sh
Slide 35: P/L (Consolidated Cumulative Period)
P/L（Consolidated Cumulative Period） (Millions of yen) FY2024.Q1-Q2 FY2025.Q1-Q2 (April 1 - September 30) YoY (April 1, 2023 - September 30, 2023) (April 1, 2024 - September 30, 2024) Operating revenue Finance income 7,178 8,488 +18.2% Warranty revenue 2,842 3,346 +17.7% Automobility-related sales 2,
Slide 36: P/L (Consolidated Accounting Period)
P/L（Consolidated Accounting Period） (Millions of yen) FY2024.Q2 FY2025.Q1 FY2025.Q2 (July 1 - September 30) YoY QoQ (July 1, 2023 - September 30, 2023) (April 1, 2024 - July 30, 2024) (July 1, 2024 - September 30, 2024) Operating revenue 7,823 8,674 9,418 +20.4% +8.6% Operating expenses 6,424 6,852
Slide 37: P/L (Consolidated Accounting Period)
P/L（Consolidated Accounting Period） (Millions of yen) FY2024.Q2 FY2025.Q1 FY2025.Q2 (July 1 - September 30) YoY QoQ (July 1, 2023 - September 30, 2023) (April 1, 2024 - July 30, 2024) (July 1, 2024 - September 30, 2024) Operating revenue Finance income 3,683 4,145 4,342 +17.9% +4.8% Warranty revenue
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