Aeon Financial Service Co., Ltd. · TSE:8570
Aeon Financial Service — Q1 FY2020 Earnings Presentation
21 slides from Aeon Financial Service's earnings presentation, Jul 8, 2020
Slide 1: FY2020 First Quarter IR Presentation Material
FY2020 First Quarter IR Presentation Material July 8, 2020 AEON Financial Service Co., Ltd.
Slide 2: Agenda
1. Consolidated results and business by area 2. Consolidated results by segments 3. Future direction AEON Financial Service Co., Ltd.
Slide 3: Effects of the COVID-19 ①
1. Effects of the COVID-19 ① ■The issuance of behavioral regulations by governments affected operating activities. Operating situation Restrictions weak medium strong (No. of store opened/Total number of stores) →Branches, AEON group stores and external merchants Operating area MAR APR MAY JUN Stay-
Slide 4: Effects of the COVID-19 ① (continued)
1. Effects of the COVID-19 ① Operating area MAR APR MAY JUN Stay-at-home Vietnam Apr. 1 “A curfew” Preventing the spread of infection(easing social isolation) requests AEON Mall・Branches Partially closed（1/5) All store reopen（5/5) External merchants Closed except for food Reopen（Partial closures con
Slide 5: Effects of the COVID-19 ②
1. Effects of the COVID-19 ② 【 Cases that have been particularly affected by behavioral regulations and financial demands 】 Operating Regulations Period Our response area ・State of emergency ・Mar. 26 – Jul. 31 ・Partial branches closed declaration (Partial relaxation ・Shift attendance system includin
Slide 6: Consolidated business outline and results
1. Consolidated business outline and results Domestic Global Credit card ➊ Credit card (Unit: billions of yen) Installment Housing Installment Personal Shopping sales loan (※1) sales loans Cash advance ➋ Shopping Cash advance ➌ Transaction volume 1,337.2 94.6 56.5 173.7 56.5 22.8 17.7 22.0 YoY 97％ 8
Slide 7: Changes in domestic consumption trends
1. Changes in domestic consumption trends ■Recovery from the second half of May in response to the easing of the request for leave and self-exclusion of going out Changes in card shopping transaction Transaction YoY change by Industry by monthly and Type of Business MAR APR MAY （Unit: ¥ bn） 前年度 FY20
Slide 8: Consolidated results by segments
2. Consolidated results by segments (Unit：Billions Domestic total Global total Consol. of yen） China Mekong Malay Total ※1 Retail Solutions ※1 Area Area Area ※3 ※2 ※2 Operating income 748 440 469 352 43 191 117 1,099 YoY 100％ 95％ 102％ 94％ 89％ 97％ 92％ 98％ Change +1 △21 +8 △21 △5 △5 △10 △19 Operating
Slide 9: Factors contributing to the change in operating profit
2. Factors contributing to the change in operating profit Domestic Positive for profit 【Topics】 Negative for profit ・Financing revenue decreased, while 12 （Unit: FY2018 Q1 FY2019 Q1 commission revenue increased FY2020 Q1 ¥ bn） Operating Operating ・The increase in bad debt allowance is Operating Othe
Slide 10: Changes in the contents of finance receivables (Global)
2. Changes in the contents of finance receivables (Global) ■Increased bad debt allowance for future risks, including deferred payment ■In Thailand and Malaysia, there were differences in accounting adjustments and response policies in consolidated results China area Mekong area Malay area ・In respon
Slide 11: Consolidated balance sheet
2. Consolidated balance sheet Consolidated results Change from Topics ※（）:Change from start of FY Results （Unit：Billions of yen） start of FY Cash and deposits 740.5 △223 ・Domestic balance：¥696.3bn (-¥19.7bn) *including holding company → Decrease due to demand for mortgages and other funds Operating
Slide 12: Future direction
Future direction AEON Financial Service Co., Ltd.
Slide 13: Responding to environmental changes in COVID-19
Responding to environmental changes in COVID-19 ■Challenge to change that sees crisis as an opportunity Significant Our vision environmental changes Our response Non-face-to-face, Theme of growth initiatives centered Provision of non-contact, on protection and business model non-face-to-face payment
Slide 14: Initiatives ① Safety and security of customers
Initiatives ① Safety and security of customers Theme Examples of specific initiatives 【Domestic 】 ・AEON Group promotes dissemination ➢ VISA Contactless Incidental Card ：6.1 million cards (as of the end of May) →10 million cards by the end of this year ➢Supported cash register at AEON Group store ：10
Slide 15: Initiatives ② Store and sales structure
Initiatives ② Store and sales structure Theme Examples of specific initiatives 【Domestic 】 ・ Development of AEON Bank TV Consultation and Teller → 100/141 branches (as of the end of June) will be introduced in all branches by the end of this fiscal year Non-face-to- 【Global 】 face ・Development of se
Slide 16: Initiatives ③ Improve operational efficiency
Initiatives ③ Improve operational efficiency Theme Examples of specific initiatives 【 Domestic and Global】 ・Online and mobile systematization of service application Optimizing and usage channels →Electronic signature, identity verification, AI screening, screening app development, etc. ・Realization
Slide 17: FY2020 Consolidated forecasts
FY2020 Consolidated forecasts FY2020 Full term YoY Operating income ¥460.0 bn 100.6％ Operating profit ¥10.0 – 20.0 bn 15.4 - 30.7％ Profit attributable to owners of parent ¥5.0 – 10.0 bn （EPS） 14.6 - 29.3％ （¥23.17 – 46.34） 第2四半期末Interim Year End Full Year Forecast YoY Forecast YoY Forecast YoY Divide
Slide 18: (Reference) FY2020 Q1 Results (Hong Kong, Thailand, Malaysia)
(Reference) FY2020 Q1 Results (Hong Kong, Thailand, Malaysia) FY2019 Q1 FY2020 Q1 Results YoY Results YoY AEON Revenue 324,853 98％ 297,470 90％ CREDIT SERVICE Profit before tax 128,842 94％ 90,091 69％ (ASIA) (HK$’000) Profit for the period 106,792 92％ 75,264 70％ AEON Total Revenues 5,493,819 112％ 5,65
Slide 19: (Reference) FY2020 Q1 Results (Hong Kong, Thailand, Malaysia)
(Reference) FY2020 Q1 Results (Hong Kong, Thailand, Malaysia) ■ Consolidated Results of AEON Credit Service (Asia) Co., Ltd. (Unit:Billions of yen) FY2019 Q1 FY2020 Q1 Results Results YoY Exchange rates: HKD 1 ・FY2019 Q1 ：¥ 14.12 Operating income 4.5 4.1 90％ ・FY2020 Q1 ：¥13.93 Operating profit 1.8 1
Slide 20: (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 FY2019 Q1 FY2020 Q1 Allowance for doubtful accounts, balance
Slide 21: AEON Financial Service Co., Ltd.
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 — Q1 FY2020 Earnings Presentation on 6ix