Slide 1: Financial Results Presentation for 1H of FY Ending March 31, 2023
Financial Results Presentation for 1H of FY Ending March 31, 2023 October 28, 2022 TSE Prime Section: 7199 Premium Group Co., Ltd.
Slide 2: Agenda
1. Summary of Financial Results for 1H of FY Ending March 31, 2023 P.10 About the Upward Revision to Full-Year Forecast 2. Finance Segment 3. Automobile Warranty Segment 4. Auto Mobility Segment 5. Car Premium Segment 6. Appendix ※The results briefing videos is scheduled to be distributed on October
Slide 3: Key Messages
Key Messages Market Environment ◼ Number of new vehicles sold and used passenger vehicles registered down again year on year due to recent business environment circumstances ◼ Severe market conditions with declining used vehicle inventories and rising unit prices Our KPIs and Performance ◼ Credit fi
Slide 4: 1. Summary of Financial Results for 1H of FY Ending March 31, 2023
1. Summary of Financial Results for 1H of FY Ending March 31, 2023 4
Slide 5: Highlights from 1H of FY Ending March 31, 2023 (1)
Highlights from 1H of FY Ending March 31, 2023 (1) ◼ Market continues to fall below previous year's levels ◼ Growth in volume of new loans for both credit finance and automobile warranty Market KPIs (Billions of yen) Number of new vehicles Number of used passenger Total volume of new loans Total vol
Slide 6: Highlights from 1H of FY Ending March 31, 2023 (2)
Highlights from 1H of FY Ending March 31, 2023 (2) ◼ Higher profits and sales, future expected earnings (deferred profit): Approx. 40.0 billion stocked on BS ◼ Reversal of last year's impairment loss on our Thai affiliate (ECL) results in 990 million in profit before tax, up 28.6% YoY when excluding
Slide 7: Highlights from 1H of FY Ending March 31, 2023 (3)
Highlights from 1H of FY Ending March 31, 2023 (3) ◼ Implemented various stakeholder measures for medium- to long-term growth Main Topics Achieved 2,000 Car Raised stock ownership Issued our first Annual Further preponed results Premium Dealers ahead of association incentive Report (2022) announceme
Slide 8: Consolidated Performance
Consolidated Performance (Millions of yen) ◼ Operating income of ¥11,887 million, up 17.5% YoY ◼ Operating profit up 27.5％ YoY due to lower operating expenses from Group synergies YoY Operating income FY22 Q2 FY23 Q2 change 11,887 10,120 Operating income 10,120 11,887 +17.5% Operating expenses 8,258
Slide 9: Operating Expenses (Breakdown)
Operating Expenses (Breakdown) (Millions of yen) ◼ Lower growth in operating expenses versus growth in operating income FY22 1H Operating expenses FY23 1H Operating expenses ¥8,258 million ¥9,512 million (up 15.2% YoY) (YoY change) Operating income 10,120 Operating income 11,887 (+17.5%) Increase at
Slide 10: About the Upward Revision to Full-Year Forecast
About the Upward Revision to Full-Year Forecast ◼ Reversal of last year's impairment loss on our Thai affiliate (ECL) results in 990 million JPY in profit before taxes ◼ Spent 390 million JPY in marketing expenses as strategic investment for Car Premium ◼ Full-year profit before tax revised upward t
Slide 11: Full-Year Performance Outlook
Full-Year Performance Outlook (Millions of yen) ◼ Steady progress also against upwardly revised full-year forecasts Quarterly performance is to increase gradually from the further accumulation of loan receivables Operating income Profit before tax 5,300 (After 24,500 (Forecast) upward revision) 20,8
Slide 12: Performance by Segment
Performance by Segment (Millions of yen) ◼ Each segment steadily setting new record highs for operating income ◼ Auto mobility segment providing greater share of operating income Operating income FY23 1H Finance Automobile warranty Auto mobility Car Premium Operating income Profit before tax Include
Slide 13: 2. Finance Segment
Premium 2. Finance Segment
Slide 14: 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 14.0% YoY ◼ Further sales efficiency achieved over 0.2 billion JPY auto loan PH Volume of new ◼ Retain dealers through conversion to paid memberships, maintaining our
Slide 15: Finance Segment: Loan receivables
Finance segment Loan receivables (Graph unit: billions of yen, %) ◼ Loan receivables also grew. up 16.9% YoY ◼ Continued elimination of initial arrears reduction by achieving efficient Loan receivables calling through DX measures Up 16.9% YoY ◼ Strengthened collection activities for medium- to long-
Slide 16: Finance Segment: Other Indicators
Finance segment Other Indicators ◼ Working to promote utilization and increase share among existing network stores while continuing to develop new network stores ◼ No plan to significantly increase sales staff in FY2023 Aiming to increase the volume of new loans by establishing mechanisms and making
Slide 17: 3. Automobile Warranty Segment
3. Automobile Warranty Segment 17
Slide 18: Automobile Warranty: 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 Product volume 13.5% YoY Up 13.5% YoY ◼ Volume for products developed in-house continues growth, up 27.3% YoY Products ◼ Expanded new client
Slide 19: Automobile Warranty: 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 ◼
Slide 20: 4. Auto Mobility Segment
p Premium 4. Auto Mobility Segment 20
Slide 21: Auto Mobility Segment Performance
Auto mobility segment Performance (Graph unit: millions of yen) ◼ Focused on developing services for Car Premium Club and creating new businesses ◼ Launched full-scale software sales to Premium network stores, contributing to increasing sales Auto mobility segment sales Up 56.2% YoY Other 974 Softwa
Slide 22: 5. Car Premium Segment
p Premium 5. Car Premium Segment 22
Slide 23: 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 acquisitions by the end of FY2023 upwardly revised to 2,500 companies ◼ Aim to further increase membership e
Slide 24: 6. Appendix
p Premium 6. Appendix 24
Slide 25: 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 26: 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 Diversified Business Portfolio as an Independent Company Automobile Finance Warranty Auto Mobility ▷Main business ▷Main business 14% ・Auto c
Slide 27: Segment Reorganization
Segment Reorganization Reclassified reporting segments due to the rising importance of the Car Premium Club, the generation of greater Group synergy, and expanding our business Finance segment Automobile warranty segment Auto mobility segment Car Premium segment Premium Co., Ltd. Premium Warranty Se
Slide 28: 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 29: Balance Sheet (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) Compared to the FY22 Q1.FY23 Q2.FY23 end of the QoQ (As of March 31, 2022) (As of June 30, 2022) (As of September 30, 2022) previous fiscal Assets Cash and ca
Slide 30: 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) Compared to Q1-Q2.FY22 FY22 Q1-Q2.FY23 the and of (April 1 - September 30) YoY (April 1, 2021 - September 30, 2021) (April 1
Slide 31: P/L (Operating income/Operating expenses)
Note: Since it is a preliminary value, we will promptly notify you on our website when any corrections or changes occur. P/L (Operating income/Operating expenses) (Millions of yen) Compared to Q1-Q2.FY22 FY22 Q1-Q2.FY23 the and of (April 1 - September 30) YoY (April 1, 2021 - September 30, 2021) (Ap
Slide 32: P/L (Consolidated quarterly 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) Q2.FY22 Q1.FY23 Q2.FY23 (July 1 - September 30) YoY QoQ (July 1, 2021- September 30, 2021) (April 1, 2022 - June 31, 2022) (
Slide 33: P/L (Operating income/Operating expenses)
Note: Since it is a preliminary value, we will promptly notify you on our website when any corrections or changes occur. P/L (Operating income/Operating expenses) (Millions of yen) Q2.FY22 Q1.FY23 Q2.FY23 (July 1 - September 30) YoY QoQ (July 1, 2021- September 30, 2021) (April 1, 2022 - June 31, 20
Slide 34: Disclaimer
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