Earnings Presentation

Transcription

1 1 st Quarter of FY 217 Earnings Presentation August 216 J Trust Co., Ltd. Copyright(C)216 JTRUST Co.,Ltd. All Rights Reserved.

2 Table of Contents 1.Financial Results for 1 st Quarter of FY Performance and Results by Segments 3.Progress Report on the Full-Year Target 4.Others APPENDIX(IFRS-unaudited) 2

3 Disclaimer The information published in this material, including forecasts, is recognition, opinion, judgment or projection of the Company at the time of creation of this material and the Company does not guarantee its achievement. As such, please be aware that actual results may differ from the forecasts provided in this material as a result of various factors. The earnings presentation and this material are prepared to provide information to facilitate greater understanding of the Company. It is not intended for use in soliciting investments in the securities issued by the Company or its subsidiaries. There are three months difference between consolidated accounting period and accounting period of Financial Business in Southeast Asia. (For example, FY217 reflects figures from January 216 till March 216 of Bank JTrust Indonesia, likewise 2Q reflects its figures from April till June, 3Q reflects its figures from July till September, and 4Q reflects its figures from October till December.) The exchange rate published in this material, for Financial Business in South Korea indicates the end of June 216, and for Financial Business in Southeast Asia indicates the end of March 216. This material is an English translation of the original Japanese document, prepared solely for the convenience of and reference by overseas investors. If there exist any discrepancies between the original Japanese language and English translation, the Japanese language will always prevail. The issuer shall not be liable for this translation or any loss or damage arising from this translation. 3

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5 Financial Results for FY217 5

6 Financial Results for FY217 Quarterly operating revenue achieved the highest-ever level of 2.5 billion yen Quarterly operating profit increased by 3 billion yen over the same period of the previous year The performance is on upward trend, in progress to achieve full-year targets 6

7 Financial Results for FY217 I. Domestic Financial Business Bullish expect to exceed full-year targets I. Financial Business in South Korea Growing reduced risks of consolidating the accounts, and the profit level is steady I. Financial Business in Southeast Asia Stabilizing Monthly Surplus maintain profitability and stability IV. Investment Business Great Contribution to consolidated results 7

8 Overview of Financial Results for FY217 8

9 Overview of Financial Results for FY217 /consolidated summary (progress of operating revenue and operating profit quarterly) Quarterly operating revenue and operating profit are solid Quarterly consolidated operating revenue is recorded as 2.5 billion yen Under J-GAAP Consolidated Summary in 1 million yen Operating revenue Operating profit /3 2Q 3Q 4Q TOTAL 217/ /3 2Q 3Q 4Q TOTAL 217/3 *rounding off the number 9

10 Overview of Financial Results for FY217 /consolidated summary (Compared with the same period of FY216) Operating profit is 1.1 billion yen, increased 3 billion yen from the previous year After adjustment of EBITDA is 2.2 billion yen, increased 2.9 billion yen from the previous year Under J-GAAP Consolidated Summary in 1 million yen FY216 FY217 Difference Operating revenue Operating profit Ordinary profit Profit attributable to owners of parent EBITDA after adjustment EBITDA after adjustment: operating profit + amortization of goodwill + depreciation + business structure improvement expenses (cost of restructuring) 1

11 Overview of Financial Results for FY217 /segment operating revenue (Compared with the same period of FY216) Domestic Financial Business is solid Financial Business in South Korea decreased due to the exchange rate ( FY216=.117 KRW FY217=.93 KRW) The operating revenue of Financial Business in Southeast Asia is increasing steadily Under J-GAAP Operating revenue in 1 million yen FY216 FY217 Difference Domestic Financial Business Financial Business in South Korea Financial Business in Southeast Asia Investment Business Non-Financial Business MISC Total *Non-Financial Business: real estate business and general entertainment business *MISC: constructing commercial facilities business, IT system, etc 11

12 Overview of Financial Results for FY217 /segment operating revenue (Compared with the same period of FY216): Local currency approximation Increased 11.8 billion KRW in Financial Business in South Korea Increased 7.6 IDR billion in Financial Business in Southeast Asia Under J-GAAP Operating revenue Financial Business in South Korea in 1 million won / /3 in IDR 1 million 4,5 4, 3,5 3, 2,5 2, 1,5 1, 5 Financial Business in Southeast Asia 3, /3 4, /3 Exchange rate:yen=won Exchange rate:yen=idr 216/3 =.117won (Apr.-June 215 Avg.) 216/3 =.94IDR (Jan.-Mar. 215 Avg.) 217/3 =.93won (Apr.-June 216 Avg.) 217/3 =.86IDR (Jan.-Mar. 216 Avg.) 12

13 Overview of Financial Results for FY217 /segment operating profit (Compared with the same period of FY216) Domestic Financial Business is constantly growing Financial Business in South Korea is steadily profitable Financial Business in Southeast Asia is improving performance Under J-GAAP Operating profit in 1 million yen FY216 FY217 Difference Domestic Financial Business Financial Business in South Korea Financial Business in Southeast Asia Investment Business Non-Financial Business 1 1 MISC. 7 7 Total *Non-Financial Business: real estate business and general entertainment business *MISC: constructing commercial facilities business, IT system, etc 13

14 Overview of Financial Results for FY217 /segment operating profit (Compared with the same period of FY216): Local currency approximation Increased 2.2 billion KRW, Financial Business in South Korea Improved billion IDR, Financial Business in Southeast Asia Under J-GAAP in 1 million won 25 Financial Business in South Korea Operating profit in IDR 1 million Financial Business in Southeast Asia , -1,5-2, -2,68 5-2, /3 217/3-3, 216/3 217/3 exchange rate:yen=won exchange rate:yen=idr 216/3 =.117won (Apr.-June 215 Avg.) 216/3 =.94IDR (Jan.-Mar. 215 Avg.) 217/3 =.93won (Apr.-June 216 Avg.) 217/3 =.86IDR (Jan.-Mar. 216 Avg.) 14

15 Overview of Financial Results for FY217 /real earning power of business 6 million yen of negative goodwill posted in FY215, which decreased the level of operating profit The real earning power of operating profit is estimated as 1.7 billion yen Under J-GAAP Real earning power of operating profit in 1 million yen /3 Operating Profit Negative goodwill 217/3 Operating profit (Real earning power/ estimated) 15

16 Performance and Results by Segments 16

17 Domestic Financial Business: operating revenue/operating profit Operating revenue and operating profit are both solid. The goal is to exceed full-year targets Due to the effect of restructuring, fixed cost is decreased. The business is constantly growing Under J-GAAP Domestic Financial Business in 1 million yen Operating revenue Operating profit /3 217/3 216/3 217/3 17

18 Domestic Financial Business/credit guarantee business Apartment loan is constantly growing The approval is steadily increasing. In progress to achieve full-year targets Amount of credit guarantee by Nihon Hoshou 6 Size of guarantees Apartment Loans Total 533 (in 1 million yen) Approved Apartment Loans (in 1 million yen) / / /

19 Domestic Financial Business: Servicer business The amount of receivables continued to increase because of successful purchased of NPLs FY217 s target is 44.9 billion yen. The achievement rate is 156% (Also, already achieved FY218 target of 5.8 billion yen.) 7, Amount of receivables (in 1 million yen) 6,879 6, FY218 targets: 5,8 5, FY217 targets: 4,49 4,679 4, 3,492 3, 2,572 2,833 2, 1, 1,196 1,251 1,471 21/3 211/3 212/3 213/3 214/3 215/3 216/3 216/6 19

20 Financial Business in South Korea 2

21 Financial Business in South Korea: operating revenue/operating profit Financial Business in South Korea decreased due to the foreign exchange rate(216/3 =.117KRW 217/3 =.93KRW) Generating positive operating profit, the performance is on upward trend Under J-GAAP Financial Business in South Korea (in 1 million won) Operating revenue Operating profit /3 217/3 216/3 217/3 21

22 Financial Business in South Korea: in total *4x companies K-GAAP (South Korean accounting standard) shows real earning power and both operating revenue/operating profit are solid Financial Business in South Korea Operating revenue Operating profit 1, /3 J-GAAP 217/3 K-GAAP 217/3 J-GAAP in 1 million won /3 K-GAAP reference rate:1won=.896yen *4x companies of South Korea=JT Chinae Savings Bank, JT Savings Bank, JT Capital, TA Asset 22

23 Financial Business in South Korea : new loan balance The amount of loan disbursed per month recorded the highest (3-month average: 17.8 billion KRW) It is double the amount of avg billion KRW last year Amount of loan disbursed per month (in 1 million won) 2, JT Capital 1,893 1,8 1,6 1,4 1,2 1, 8 JT Savings Bank JT Chinae Savings Bank 1,22 96 avg 979 1,8 1,284 1,364 avg 1,352 1,49 1,166 1,58 1,493 avg 1,389 1,585 avg 1,78 1, / / reference rate:1won=.896yen 23

24 Financial Business in South Korea : loan balance Loan balance increased steadily Loan balance (in 1 million won) 22, 21, 2, 19,43 19,662 2,148 2,622 21,376 19, 18,291 18,48 18,86 18, 17, 17,376 17,34 17,175 17,212 17,267 17,296 17,81 16, 15, 15/ / / reference rate:1won=.896yen 24

25 Financial Business in South Korea : operating assets Increasing excellent receivables, due to the credit screening by our group companies Delinquency ratio record at the lowest level Revenue base becoming solid Loan balance and NPLs* at savings banks/capital company (in 1 million won) 2, 34.5% Loan disbursed by group companies Purchased receivables Delinquency ratio 21,377 4.% 3,29 35.% 3.% 15, 25.% 1, 6,156 2.% 18, % 5, 1.% 5.64% 5.% 14/ / / % reference rate:1won=.896yen * definition of NPL: loans that are delinquent for 3 days or more 25

26 Financial Business in South Korea/in total *4x companies The real earning power under J-GAAP is estimated 8 million yen, excluding the amount of amortization of negative goodwill Under J-GAAP Total 4x companies of operating profit (estimated) (in 1 million won) /3 Actual Amount of amortization negative goodwill 217/3 Real earning power 26

27 Financial Business in South Korea /decreasing factor of operating profit negative goodwill Negative goodwill posted in FY215 impacted consolidated operating profit As of June 216, the amount of unamortized is 9 million yen (which will be amortized by FY217) Under J-GAAP Impact of negative goodwill on operating profit (as of the end of June 216) (in 1 million yen) 95 Amortized 8 in FY216 Amortized 6 million yen in Negative goodwill as of Mar. 215 (JTCK and JTSB were acquired) Actual as of Mar. 216 Actual as of Mar

28 Financial Business in Southeast Asia 28

29 Financial Business in Southeast Asia: timing difference in account closing Under J-GAAP, 3-month timing difference in account closing arises when consolidating results of Financial Business in Southeast Asia Image of consolidating results of Financial Business in Southeast Asia (operating profit) (in 1 million yen) FY217 2Q 3Q 4Q Under J-GAAP Jan.-Mar. 216 Apr.-June 216 July-Sept. 216 Oct.-Dec. 216 Operating revenue Operating profit

30 Financial Business in Southeast Asia : operating revenue/operating profit Operating revenue is increasing, and the performance is on upward trend towards the end of the year Operating profit has improved Focusing on cost-effective management Under J-GAAP Financial Business in Southeast Asia in 1 million yen Operating revenue Operating profit /3 217/ /3 217/3 3

31 Financial Business in Southeast Asia Bank Indonesia: Other key indicators Interest income increased by accumulating operating assets and raising average lending interest rates A reduction in deposit rates also contributed to the steady growth of net interest income (interest income minus interest costs) Avg. lending interest rate Avg. deposit interest rate Net interest income (in IDR 1 million) 11.22% 11.37% % 1.55% 8.43% 8.4% 7.84% % / 4~6 7~9 1~12 216/ 1~3 215/ 4~6 7~9 1~12 216/ 1~3 215/ 4~6 7~9 1~12 216/ 1~3 reference rate: 1 IDR=.86yen 31

32 Financial Business in Southeast Asia Bank JTrust Indonesia: operating assets and NPL ratio Operating assets accumulated steadily by strengthening sales force 12, 1, 8, 6, Operating assets and NPL ratio 7.5% 7.5% 6.9% 6.4% 8,735 83,157 83,86 84,81 86,344 88,656 84,374 87,173 93,87 93,87 4.9% 4.5% (in IDR 1 million) 8.% 1,567 7.% 98,122 6.% 5.% 4.% 4, 3.% 2.8% 2.6% 2.6% 2.5% 1.9% 3.% 2.% 2, 1.% /1 2 3.% reference rate: 1 IDR=.86yen 32

33 Financial Business in Southeast Asia Bank JTrust Indonesia: COF and LDR Decreased COF (Cost of Funds) steadily Loan-To-Deposit ratio (LDR) increased due to our control of the deposit amount in view of the loan balance (to reduce baseline costs) COF and LDR 9.5% Cost of Funds 1.% LDR 92.1% 9.% 8.5% 8.% 8.97% 8.87% 8.42% 8.15% 8.3% 8.18% 8.15% 8.4% 8.1% 9.% 8.% 7.% 81.99% 76.29% 77.9% 76.83% 75.51% 85.35% 82.35% 85.15% 85.1% 88.34% 85.3% 7.5% 7.69% 7.56% 7.84% 6.% 7.% 5.% 6.5% % 15/ / % % 15/ /

34 Financial Business in Southeast Asia/Bank JTrust Indonesia: enhancement of business foundation 1 Group Lease Finance Indonesia (GLFI) has started operation this July and already made business contracts Accelerate to accumulate loan balance from multi-finance business of Bank JTrust Indonesia Deploy with lighter POS for rural areas including islands of 13, in Indonesia Motorcycle, Agricultural Equipment, Solar Panel, housing, white goods, etc. Finance money from Bank JTrust Indonesia with channeling scheme PT Group Lease Finance Indonesia *multi-finance: funding to agents which deal with auto mobile and motorcycle loans 34

35 Financial Business in Southeast Asia/Bank JTrust Indonesia: nhancement of business foundation 2 Collaborated bank released rupiah linked time deposit which will contribute to lower COF of Bank JTrust Indonesia COF at Bank JTrust Indonesia : 7.84% (as of the end of 216/3) COF from the product: 6.%~6.5% Developing measures to reduce fixed cost and improve operating efficiency Transferred an additional management of IT department to speed up IT system Transferred an executive of Nihon Hoshou to Bank JTrust Indonesia as an executive officer of JTG Bank JTrust Indonesia Operating scene 35

36 Investment Business 36

37 Investment Business: operating revenue/operating profit Gained 1.4 billion yen of revenue by selling shares of Bank Mayapada By underwriting of convertible bond issued by Group Lease PCL, expecting to gain 8 million yen of revenue Stock price of Group Lease hikes, we could expect an increase in valuation gains in the bond, and the stock conversion could also have an influence on our results Under J-GAAP Investment Business Operating revenue Operating profit in 1 million yen /3 217/ /3 217/3 *Group Lease: Group Lease PCL listed on the Stock Exchange of Thailand 37

38 Non-Financial Business 38

39 Non-Financial Business: operating revenue/operating profit Operating revenue is steadily increasing The revenue of general entertainment business is increasing towards the end of the year Under J-GAAP Non-Financial Business in 1 million yen Operating revenue Operating profit /3 217/ /3 217/3 *Non-Financial Business: real estate business and general entertainment business 39

40 New challenge Bitcoin exchange J-Bits has started in June 216 Launched *native application for smartphones, first in the industry Focus on providing safe and reliable bitcoin service Chart Smartphone Application Bitcoin information website *native application: an application program that has been developed for use on a smartphone. J-Bits application has all the information when dealing Bitcoins such as wallet, chart, market news, etc.. 4

41 Progress Report on the Full-Year Target 41

42 Progress Report on the Full-Year Target/Segment operating revenue achievement rate Under J-GAAP Domestic Financial Business Financial Business in South Korea Financial Business in Southeast Asia Operating revenue Full-Year Target FY217 Achievement rate in 1 million yen To achieve % % % 171 Investment Business % 23 Non-Financial Business/MISC % 159 Total % 777 *Non-Financial Business: real estate business and general entertainment business *MISC: constructing commercial facilities business, IT system, etc 42

43 Progress Report on the Full-Year Target/operating profit achievement rate by segment Under J-GAAP Domestic Financial Business Financial Business in South Korea Financial Business in Southeast Asia Operating profit Full-Year Target FY217 Achievement rate in 1 million yen To achieve % % Investment Business % 17 Non-Financial Business/MISC Others Total % 12 *Full-Year target of Non-Financial Business: general entertainment business =7 billion yen real estate business=6 billion yen 43

44 Others 44

45 Others/in progress of strengthening IR Strengthen engagement with individual investors as well as institutional investors Continuous conducting overseas roadshow 1. Strengthen engagement with individual investors Company Information Session May 3 th, 31 st 216 (Tokyo/Osaka) Total participation :638 people Sept. 8 th, 9 th 216 (Tokushima/Ehime) To be held Exhibit in Nikkei IR Investment Fair 216 Aug. 26 th, 27 th 216 (Tokyo) expected around 16, individual investors Company information session(osaka) 2. Continuous conducting overseas roadshow From 3Q FY217 to 4Q FY217 Nikkei IR Fair (Tokyo)*In 214 in U.S, the UK and ASIA 45

46 Others/Our dividend policy Continue to pay the dividend to shareholders For the purpose of returning the profit to shareholders, we conducted share buyback to increase the capital efficiency Change in Dividend Unit: yen 1. Dividend: First half: 6 yen per share 2 Second half: 6 yen (plan) Plan to increase 2 yen dividend compared with the previous year 2. Share buyback: taking into account the share price and capital efficiency Plan to purchase max 6,, shares through ToSTNet- 3 We conducted 6,25, share buyback in FY Mid-Term End of the year (plan) 46

47 APPENDIX 47

48 Overview of Financial Result for 1 st Quarter/Consolidated summary (progress in quarterly) Under IFRS (unaudited) 8 Operating revenue Operating profit in 1 million yen /3 2Q 3Q 4Q TOTAL 217/ /3 2Q 3Q 4Q TOTAL 217/3 48

49 Overview of Financial Result for 1 st Quarter/Consolidated summary (compared with the period of FY216) Under IFRS (unaudited) in 1 million yen FY216 FY217 Difference Operating revenue Operating profit Profit attributable to owners of parent

50 Overview of Financial Result for 1 st Quarter/Segment operating revenue (compared with the period of FY216) Under IFRS (unaudited) in 1 million yen FY216 FY217 Difference Domestic Financial Business Financial Business in South Korea Financial Business in Southeast Asia Investment Business Non-Financial Business MISC Total *Non-Financial Business: real estate business and general entertainment business *Others: main office, system, consolidation adjustments, and others 5

51 Overview of Financial Result for 1 st Quarter/Segment operating profit (compared with the period of FY216) Under IFRS (unaudited) in 1 million yen FY216 FY217 Difference Domestic Financial Business ± Financial Business in South Korea Financial Business in Southeast Asia Investment Business Non-Financial Business 1 1 ± MISC Total *Non-Financial Business: Real estate business and General entertainment business *MISC: main office, system, consolidation adjustments, and others 51

52 EBITDA after adjustment 18 in 1 million yen * /3 29/3 21/3 211/3 212/3 213/3 214/3 215/3 216/3 217/3 *Simply multiplied by 4 of the numerical number for FY217 52

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