Slide 1: Financial Results Briefing Materials for the Six Months Ended May 31, 2024
Financial Results Briefing Materials for the Six Months Ended May 31, 2024 FP Partner Inc. July 16, 2024
Slide 2: Regarding some reports related to the Company
Regarding some reports related to the Company Dear shareholders and stakeholders We apologize for any trouble caused by recent reports, including articles related to the Company. As reported in disclosures on June 14, 17, and 19, 2024, there is no truth to reports about granting favors, and the Comp
Slide 3: Regarding some reports related to the Company
Regarding some reports related to the Company ⚫ The number of applicants for sales employee positions decreased temporarily after the reports but have already recovered. ⚫ Customers attracted on our own (including appointments to visit Money Doctor Premier stores) directly linked to Company branding
Slide 4: Table of contents
Table of contents 01 Financial highlights for the six months ended May 31, 2024 Targets of priority measures for the fiscal year ending 02 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 Par
Slide 5: Financial highlights for the six months ended May 31, 2024
01 Financial highlights for the six months ended May 31, 2024 Copyright © FP Partner Inc. All Rights Reserved. 5
Slide 6: Financial highlights for the six months ended May 31, 2024, year-on-year change
Financial highlights for the six months ended May 31, 2024, year-on-year change Net sales rose 17.6% year-on-year. Strong hiring, customer attraction, and policy transfers are the foundation to achieve the 2H target. Net sales Operating profit Profit 17,140 million yen 2,687 million yen 1,851 millio
Slide 7: Financial highlights: achievement versus 1H / full-year forecast
Financial highlights for the six months ended May 31, 2024 [achievement versus the 1H / full -year forecast] Results for the fiscal Earnings forecast for the year ending November fiscal year ending 30, 2024 November 30, 2024 Compared Achievement against to 1H results forecast 0% 100% 3Q plan Compare
Slide 8: Financial highlights for the six months ended May 31, 2024
Financial highlights for the six months ended May 31, 2024 Raised remuneration rate (cost of sales) for sales employees ⚫ Achieved results in hiring of sales employees ⚫ Growth of gross profit was limited due to increases through differentiation with competitors. in cost of sales. Operating income m
Slide 9: Financial highlights for the six months ended May 31, 2024
Financial highlights for the six months ended May 31, 2024 Increase in number Increase in number of 1 of sales employees 2 new policies 3 Increase in net sales KPI KPI Expanded visit Number of sales Strong Number of prospective destinations of First-year commissions policy customers employees hired
Slide 10: Financial highlights: Q KPI results
Financial highlights for the six months ended May 31, 2024 2Q KPI results ⚫ 370 hires were made in 1H compared to the annual hiring target of 700 hires. ⚫ The number of prospective customers for insurance policies also reached a record high of 42,553 (up 2,426 or 6.0%) on a quarterly basis, along wi
Slide 11: Earnings model [life and non-life insurance]
Earnings model [life and non-life insurance] Breakdown of commission income and trends from life insurance sales In the case of life insurance First-year Ongoing Business quality ⚫ The period of commission receipt varies from 5 to 10 commissions commissions support fee years for each insurance compa
Slide 12: Quarterly performance trends [Life insurance commissions]
Quarterly performance trends [Life insurance commissions] Life insurance commissions income (Unit: Millions of yen) Up Following 1Q, achieved record-high life insurance 21.3% commission income for 2Q as well. Up 18.4% 8,402 8,402 Up 7,907 7,999 27 Up 15.5% 6,927 17 7,334 19 2,207 13.9% 6,564 6,953 4
Slide 13: Revenue structure image
Revenue structure image A B When acquiring new policies under the In-house customer Customers attracted same exact conditions attraction policy transfers from partner companies A B In-house customer Customers attracted attraction policy from partner transfers companies Difference in profit amount 1
Slide 14: New policy acquisition flow
New policy acquisition flow Results for the six months ended May 31, 2024 An increase in the number of sales employees was the driver of growth in new policies and net sales. Self-development Sales employees [Number of prospective policy customers] 42,553 [Net new customers] [Net new policies] [Cust
Slide 15: Partner companies
Partner companies The number of customers acquired has grown steadily. The number of partner companies is Partner companies forecast to be increased to around 40 in order to Attracting customers through improve efficiency in the future. FP consultations joint ventures Joint venture Results for the f
Slide 16: au Financial Partner (auFP)
au Financial Partner (auFP) au Financial Partner offers first dividend due to strong performance. Company overview Appointment Bank acquisition FP consultations Name au Financial Partner Corporation Nature of Life insurance agency and non-life insurance agency business Bank agency Service website au
Slide 17: Key KPI trends [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) Record highs were recorded for both partner 42,553 company customers and in-house customers 39,518 40,127 36,387 38,2
Slide 18: Key KPI trends [Number of new policies/customers (quarterly)]
Key KPI trends [Number of new policies/customers (quarterly)] Number of new policies and customers reached record highs by increasing sales employees and raising sales employee remuneration. Number of new policies Number of new policy customers (Unit: Number of policies) (Unit: Persons) 136,464 226,
Slide 19: Key KPI trends [Number of existing policies (quarterly)]
Key KPI trends [Number of existing policies (quarterly)] Number of policies in force Number of existing customers (Unit: Number of policies) (Unit: Persons) +259,913 +88,771 Corresponding with an increase in Year-on-year (+19.6%) Up trend continues behind a (+16.2%) change Year-on-year number of new
Slide 20: 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. 20
Slide 21: Strengthening of structure looking toward 2H
Fiscal year ending November 30, 2024 Strengthening of structure looking toward 2H Before structural changes 1 ⚫ Construction of new SalesHeadquarters structure Market Operating Sales Operating Officers Development Officers Headquarters Management Divisions Management Divisions ⚫ Promote 8 Branch Man
Slide 22: Enhance the quality of FP consultations
Fiscal year ending November 30, 2024 Strengthening of structure looking toward 2H In order to more accurately grasp customer needs, enhance the quality of FP consultations Visualize latent customer needs [By product field] Ratio of new policies 1 through financial planning Apparent ⚫ Short-term oper
Slide 23: 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, change in Respond to the high
Slide 24: Number of sales employees, hires, and locations
Number of sales employees, hires, and locations Net increase in the first half Number of sales employees Number of sales employees and hires (Unit: Persons) Number of offices * 175 136 152 159 Number of hires 128 (Unit: Persons) 101 110 Total 2,402 2,462 300 2,500 159 2,326 locations Fiscal year Fis
Slide 25: Changes to hiring environment due to listing
Changes to hiring environment due to listing (1) Increase in hires without experience in insurance industry Breakdown of previous industries Target Persons without experience in for hires 14.4% insurance industry increased. 21.3% 1.7% Joined the Joined the Company in 2.1% Company in fiscal year fisc
Slide 26: Improved quality in hiring
Changes to hiring environment due to listing (2) Increase and change in applicants Number of 1H hires 370 Improved Online applicants Employment seminar quality in hiring 1H 1,792 1H Held 102 times Record high 438 attendees Referral hires 1H 198 Corresponding with the increase in sales employees, the
Slide 27: Strengthen organizational sales foundation
Strengthen organizational sales foundation Through organizational education with the in-house FP The Company repositions employees as appropriate system, the Company realizes quick functionality of sales based on the wishes of the sales employee, thus employees, a high standard level*, and lower tur
Slide 28: Growth strategy for the fiscal year ending November 30, 2024
Growth strategy for the fiscal year ending November 30, 2024 Policy transfers We will significantly further develop three pillars that will support Non-life Money Doctor insurance future growth. Premier Copyright © FP Partner Inc. All Rights Reserved. 28
Slide 29: 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) ⚫ Under a backdrop of an increase in the number of agencies scheduled to go out of business, the number of policy transf ers inc
Slide 30: Expansion of policy transfer business
Priority initiatives for the fiscal year ending November 30, 2024 (1) Expansion of policy transfer business Acquiring new customers Obtaining ongoing commissions from 1 transferred policies Profit occurs from first year of transfer Ongoing commissions Policy transfers agreed to Immediately after … …
Slide 31: Expansion of Money Doctor Premier business: covering all major areas in Japan
Priority initiatives for the fiscal year ending November 30, 2024 (2) Expansion of Money Doctor Premier business Covering all major areas in Japan ⚫ Improve recognition of the Money Doctor brand in areas where stores are Effect of store located. openings ⚫ Increase in sales of savings-type products
Slide 32: Expansion of Money Doctor Premier business
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 business premium [ANP based] (Unit: Number of bookings) 5,000 (Unit: Millions of yen) 5,000 3,000 4,000 3,541 Customer acquisition for n
Slide 33: 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 Expand increased significantly. Number of non-life insurance Non-life insurance (Unit: Millions of yen) policy transfers agr
Slide 34: 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 by FP Partner Asset current situation Planning and management countermeasures Second life Preparation Acc
Slide 35: New business [Expansion of IFA business]
New business [Expansion of IFA business] The number of accounts and deposited assets rose steadily, centered on investment savings such as NISA, etc. Foundation for future recurring income [Balance of assets [IFA offices] [Number of registered [Securities accounts] under custody] sales representativ
Slide 36: New business [Financial literacy education]
New business [Financial literacy education] Operate business besides insurance sales in order to improve financial literacy 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
Slide 37: [topics] Initiatives for sustainability
[topics] Initiatives for sustainability In our corporate philosophy, we have vowed to “pursue the true form of the insurance business and continue to protect the lives of our customers.” We are aiming to realize a society where people can feel relief. Also, we will aim to improve corporate value and
Slide 38: 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. 38
Slide 39: Proactive shareholder returns [Shareholder benefits/dividends]
Proactive shareholder returns [Shareholder benefits/dividends] ⚫ Shareholders benefits and dividends are conducted Shareholder twice a year: interim and year-end. returns ⚫ Year-end dividend is forecast at 47 yen per share. Shareholder benefits program Dividend [Basic policy] Record date We are plea
Slide 40: Proactive shareholder returns [Purchase of treasury shares]
Proactive shareholder returns [Purchase of treasury shares] ⚫ We will repurchase up to 1 billion yen of Purchase of Company shares to further enhance shareholder treasury shares returns and improve capital efficiency. ⚫ All purchased shares will be retired. Reasons for share buybacks Further profit
Slide 41: Business plan
04 Business plan Copyright © FP Partner Inc. All Rights Reserved. 41
Slide 42: Business plan values [FY2024 to FY2026]
Business plan values [Fiscal year ending November 30, 2024 (15th period) to fiscal year ending November 30, 2026 (17th period)] [no change] Created a new three-year business plan using the rolling method. We will strive to expand net sales by increasing personnel, increasing the number of customer a
Slide 43: Business plan values [FY2024 to FY2026]
Business plan values [Fiscal year ending November 30, 2024 (15th period) to fiscal year ending November 30, 2026 (17th period)] [no change] Operating profit / Net sales Ordinary profit Profit (Unit: Millions of yen) (Unit: Millions of yen) (Unit: Millions of yen) 10,539 50,000 48,088 11,000 8,000 10
Slide 44: Business plan values: growth measures
Business plan values [Fiscal year ending November 30, 2024 (15th period) to fiscal year ending November 30, 2026 (17th period)] [no change] Sales Fiscal year Business expansion employee hiring target 700 （ ending November 30, 2024 ） measures 1 Organic growth 2 Hiring and education of Policy transfer
Slide 45: Looking toward 2H
Fiscal year ending November 30, 2024 Looking toward 2H Net sales growth 3Q and measures 1H results beyond Sales Conduct upfront investment in personnel expenses employees 370 [22.9%] hired ⚫ Expect increases in hiring and new policies and make Net sales grow upfront investment in personnel expenses
Slide 46: 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. Consult with a long-term perspective on the future. Our future ideal vision is In addition to life insurance and non-life To improve the financial literacy of everyone in insurance, we offer consultat
Slide 47: Data
05 Data Copyright © FP Partner Inc. All Rights Reserved. 47
Slide 48: Income statement for the six months ended May 31, 2024
Income statement for the six months ended May 31, 2024 (Unit: Millions of yen) Six months ended May 31, 2023 Six months ended May 31, 2024 Ratio to net Ratio to net Year-on-year Change sales sales change Net sales 14,576 100% 17,140 100% 2,564 +17.6% Cost of sales 9,024 61.9% 11,089 64.7% 2,065 +22.
Slide 49: Balance sheet
Balance sheet for the fiscal year ending November 30, 2024 (Unit: Millions of yen) Change from the end of the As of November 30, 2023 As of May 31, 2024 Change previous year (%) Current assets 14,311 11,797 -2,514 -17.6% Cash and deposits 11,960 9,162 -2,798 -23.4% Non-current assets 4,839 6,631 +1,
Slide 50: Key KPIs [quarterly cumulative period]
Key KPIs [quarterly cumulative period] Fiscal year ending Fiscal year ended November 30, 2022 Fiscal year ended November 30, 2023 November 30, 2024 QonQ Number of Item 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q increase/ decrease Number of policies in 1,023,413 1,076,346 1,131,058 1,189,907 1,240,784 1,323,282 1
Slide 51: Key KPIs [quarterly cumulative period]
Key KPIs [quarterly cumulative period] Fiscal year ended November 30, Fiscal year ended November 30, Fiscal year ending 2022 2023 November 30, 2024 QonQ Number of Item 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q increase/ decrease Number of sales employees 1,890 1,962 2,007 2,014 2,068 2,166 2,215 2,326 2,402 2,4
Slide 52: Key KPIs (new policies and new customers)
Key KPIs (new policies and new customers) [quarterly cumulative period] Fiscal year ended November 30, Fiscal year ended November 30, Fiscal year ending 2022 2023 QonQ November 30, 2024 Number of Percentage Item 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q increase/ change decrease Number of new policies 47,618 52
Slide 53: Appendix
06 Appendix Copyright © FP Partner Inc. All Rights Reserved. 53
Slide 54: 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 2,720 (as of May 31, 2024, excluding part-time employee
Slide 55: 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 56: Range of proposals
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 consulting go beyond insurance. Asset formation and inheritance IFA planning Services prov
Slide 57: 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 1,200,000 1,189,907 504,959 1,230,1
Slide 58: 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) 30,000 30,559 25,605 25,000 119.3% 20,919 122.4% 20,000 17,301 120.9% 16,463 15,000 105.1% Average growth rate over the 10,000 past four years 5,000 0 2019年11月 2020年11月 2021年11月 2022年11月 Fisc
Slide 59: 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 60: 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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