Slide 1: Financial Results Presentation for FY Ended March 31, 2023
Financial Results Presentation for FY Ended March 31, 2023 May 2, 2023 TSE Prime Section: 7199 Premium Group Co., Ltd.
Slide 2: Agenda
1. Summary of Financial Results for FY Ended March 31, 2023 2. Finance Segment 3. Automobile Warranty Segment 4. Auto Mobility Segment 5. Car Premium Segment 6. Earnings and Dividend Forecast for FY Ending March 31, 2024 7. New Medium-Term Management Plan, ONE&ONLY 2026 8. Appendix Access videos of
Slide 3: Key Messages
Key Messages Market Environment ◼ Used car prices appear to be normalizing and market conditions gradually recovered up to Q4 ◼ Interest rates are rising, but over the short-term there should not be any sudden spikes Our KPIs and Performance ◼ Credit finance and automobile warranty both recorded dou
Slide 4: 1. Summary of Financial Results for FY Ended March 31, 2023
1. Summary of Financial Results for FY Ended March 31, 2023 4
Slide 5: Highlights from FY Ended March 31, 2023 (1)
Highlights from FY Ended March 31, 2023 (1) ◼ New vehicle production generally recovered. The used car market also gradually recovered up to Q4. ◼ New loans and automobile warranty both recorded double-digit growth in total volume, a core KPI Market KPIs (Billions of yen) Number of new vehicles sold
Slide 6: Highlights from FY Ended March 31, 2023 (2)
Highlights from FY Ended March 31, 2023 (2) ◼ Each segment grew steadily, resulting in the sixth straight year of higher profits and sales since our IPO. Profit before tax was up 33% YoY. ◼ Future expected earnings (deferred profit) also grew steadily. Stable earnings in the next FY and beyond to be
Slide 7: Highlights from FY Ended March 31, 2023 (3)
Highlights from FY Ended March 31, 2023 (3) ◼ Implemented various stakeholder measures for medium- to long-term growth Main Topics Car Premium Car Premium ESG Human Capital Aired TV commercial Final fiscal year of the Participated in Increased initial salary MTP environmental cleanup for new graduat
Slide 8: Consolidated Performance
Consolidated Performance (Millions of yen) ◼ Operating income of ¥25,263 million, up 20.9% YoY ◼ Maintained growth as operating profit rose 9.9% YoY while making upfront investments including mass advertising (approx. ¥400 million) Operating income YoY FY22 FY23 change ・Mass advertising expenses: Ap
Slide 9: Operating Expenses (Breakdown)
Operating Expenses (Breakdown) (Millions of yen) ◼ Made upfront investments in mass advertising, etc., aimed at medium- to long-term growth FY22 Operating expenses FY23 Operating expenses ¥17,024 million ¥21,018 million (up 23.5% YoY) (YoY change) Operating income 20,888 Operating income 25,263 (+20
Slide 10: Performance by Segment
Performance by Segment (Millions of yen) ◼ Each segment growing steadily and setting record highs for operating income ◼ Auto mobility and Car Premium segments providing greater share of operating income Operating income FY23 Finance Automobile Auto mobility Car Premium warranty Operating income Pro
Slide 11: 2. Finance Segment
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Slide 12: Finance Segment: Total Volume of New Loans
Finance Segment Total Volume of New Loans (Graph unit: billions of yen, %) ◼ Despite a sluggish market, volume of new loans grew, up 20.5% YoY ◼ Auto loan PH broke through the ¥200 million mark. Continued to promote sales efficiency. ◼ Retained dealers through conversion to paid memberships (Car Pre
Slide 13: Finance Segment: Loan Receivables
Finance Segment Loan Receivables (Graph unit: billions of yen, %) ◼ Loan receivables broke through the ¥500 billion mark and grew, up 20.3% YoY ◼ Continued elimination of initial arrears reduction by achieving efficient calling through DX measures Broke through ◼ Strengthened collection activities f
Slide 14: Finance Segment: Other Indicators
Finance Segment Other Indicators ◼ Gave priority to converting existing network stores to paid memberships, while also continuing to grow new network stores ◼ As in FY2023, no plan to significantly increase sales staff in FY2024 Aiming to increase the volume of new loans by establishing mechanisms a
Slide 15: 3. Automobile Warranty Segment
3. Automobile Warranty Segment 15
Slide 16: Total Volume of New Warranties
Automobile warranty segment Total Volume of New Warranties (Graph unit: millions of yen) ◼ Despite a sluggish market, the total volume of new warranties was up 11.9% YoY ◼ Volume of products developed in-house continued to grow, up 24.3% YoY ◼ Began encouraging conversion to Car Premium Club, aiming
Slide 17: Cost Reduction Measures/Parts Sales
Automobile Warranty Segment Cost Reduction Measures/Parts Sales (Graph unit: millions of yen) ◼ Expanded lineup of parts handled and increased parts provided for warranty repair (internal parts sales) and encouraged use of our automobile maintenance facility network, reducing cost of sales ratio ◼ C
Slide 18: 4. Auto Mobility Segment
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Slide 19: Auto Mobility Segment Performance
Auto Mobility Segment Performance (Graph unit: millions of yen) ◼ Focused on developing services for paid members and creating new businesses ◼ Software sales to Premium network stores and vehicle wholesaling contributing to increased sales ◼ Expanded Car Premium website services to drive more traff
Slide 20: 5. Car Premium Segment
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Slide 21: Car Premium Club Memberships
Car Premium Segment Car Premium Club Memberships ◼ Steady progress in building Car Premium Club, a paid membership organization for car dealers and maintenance facilities ◼ Car Premium Dealer: 2,500 companies ◼ Aim to upsell to paid memberships, increase membership growth and boost membership fee re
Slide 22: 6. Earnings and Dividend Forecast for FY Ending March 31, 2024
6. Earnings and Dividend Forecast for FY Ending March 31, 2024 22
Slide 23: Earnings and Dividend Forecast for FY Ending March 31, 2024
Earnings and Dividend Forecast for FY Ending March 31, 2024 (Millions of yen) ◼ Forecast calls for operating income of ¥30,500 million, profit before tax of ¥6,000 million, and for increased sales and profits for seventh straight year ◼ Forecast is annual dividend increase of ¥5 per share Forecast f
Slide 24: 7. New Medium-Term Management Plan, ONE&ONLY 2026
— 7. New Medium-Term Management Plan, ONE&ONLY 2026 24
Slide 25: Medium-Term Management Plan, ONE&ONLY 2026: Summary
Medium-Term Management Plan, ONE&ONLY 2026: Summary Medium-Term Vision Establishing the Car Premium business model, seeking to become the ONE & ONLY auto mobility company Numerical Targets Profit attributable to Operating income Profit before tax owners of parent ROE Market cap ¥44.0 billion ¥10.2 b
Slide 26: Segments in FY2024
Segments in FY2024 Segments will be reorganized to establish the Car Premium business model Auto mobility and Car Premium segments will be merged to create further Group synergies Car Premium Finance segment Automobile warranty segment Auto mobility segment Premium Co., Ltd. Premium Warranty Service
Slide 27: 8. Appendix
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Slide 28: 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, Toky
Slide 29: Company Profile
Company Profile Premium Group is an auto mobility company offering customers a vibrant car life alongside our network of car dealers and garages. Main Business Business Portfolio (FY23) Automobile Car Premium Finance Auto Mobility 3％ Warranty ▷Main business ▷Main business 12% ・Auto credit ・ Automobi
Slide 30: Our DX Strategy
Our DX Strategy In approximately one year from formulating our DX strategy, we built our DX initiative platform and became a Noteworthy DX Company 2022 and a DX Certified Business Operator Seeking to realize our concept as a platform provider of connecting end-users and mobility providers Achieving
Slide 31: Our Actions to Address Changes in the External Environment
(FY2023 Q3) Our Actions to Address Changes in the External Environment ◼ Exchange rates: Very small number of transactions in foreign currency Little to no impact ◼ Agilely responding to rising interest rates and inflation on earnings (1) FX fluctuations (3) Rising interest rates Interest rates for
Slide 32: Measures to Increase Car Premium Brand Visibility
(FY2023 Q3) Measures to Increase Car Premium Brand Visibility ◼ Appointed celebrities to increase exposure and expand the visibility of the Car Premium brand → Increase online traffic and grow paid membership organizations by fostering the Car Premium brand Celebrity appointment Appointed GENERATION
Slide 33: BS
Note: Since it is a preliminary value, we will promptly notify you on our website when any corrections or changes occur. BS (Millions of yen) FY22 Q1_FY23 Q2_FY23 Q3_FY23 FY23 (As of March 31, (As of June 30, (As of September 30, (As of December 31, (As of March 31, YoY QoQ 2022) 2022) 2022) 2022) 2
Slide 34: P/L (Consolidated Cumulative Period)
Note: Since it is a preliminary value, we will promptly notify you on our website when any corrections or changes occur. P/L (Consolidated Cumulative Period) (Millions of yen) (Consolidated cumulative period) FY22 FY23 YoY Operating income 20,888 25,263 +20.9% Operating expenses 17,024 21,018 +23.5%
Slide 35: P/L (Consolidated Cumulative Period)
Note: Since it is a preliminary value, we will promptly notify you on our website when any corrections or changes occur. P/L (Consolidated Cumulative Period) (Millions of yen) (Consolidated cumulative period) FY22 FY23 YoY Operating income Finance income 10,615 12,576 +18.5% Impairment gain on finan
Slide 36: P/L (Consolidated Accounting Period)
Note: Since it is a preliminary value, we will promptly notify you on our website when any corrections or changes occur. P/L (Consolidated Accounting Period) (Millions of yen) 4Q_FY22 1Q_FY23 2Q_FY23 3Q_FY23 4Q_FY23 (Consolidated accounting period) （January 1, 2022 - （April 1, 2022 - （July 1, 2022 -
Slide 37: P/L (Consolidated Accounting Period)
Note: Since it is a preliminary value, we will promptly notify you on our website when any corrections or changes occur. P/L (Consolidated Accounting Period) (Millions of yen) 4Q_FY22 1Q_FY23 2Q_FY23 3Q_FY23 4Q_FY23 (Consolidated accounting period) （January 1, 2022 - （April 1, 2022 - （July 1, 2022 -
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