Financial Results for the First Quarter of FY2019/3 AIFUL CORPORATION

Transcription

1 Financial Results for the First Quarter of FY219/3 AIFUL CORPORATION August 218

2 Highlights for FY219/3 (Consolidated/ AIFUL) (Consolidated) ( million) 17/6 18/6 19/3 % (E) % Total operating assets 67, , % 751,9 86, % Loan business 426, , % 515,6 43, % Unsecured loan 361, , % 442,1 38,44 9.4% Credit card business 96,53 98,412 2.% 111,3 1,84 1.8% Credit guarantee business 78,135 88, % 117,1 3, % Operating revenue 24,224 27, % 115,4 11.% Operating expenses 23,132 26, % 98,9-13, % Operating profit 1,91 1, % 16,4 13, % Ordinary profit 1,229 1, % 16,9 14, % Profit attributable to owners of parent 1,976 1,84-6.9% 15,6 11, % (AIFUL) ( million) 17/6 18/6 19/3 % (E) % Operating revenue 15,387 17, % 7,5 5,837 9.% Operating expenses 14,965 15,95 6.3% 59,2-5,96-7.9% Operating profit 421 1, % 11,3 1,934 - Ordinary profit 615 1, % 11,9 1,921 - Profit 1,351 1, % 12,1 9, % 1

3 Financial Results for First Quarter of FY219/3 (Consolidated) Operating revenue: Operating revenue rose 14% yoy, to 27.6bn, due to an increase in the interests on operating loans etc. Operating expenses: Provision of allowance for doubtful accounts increased due to growth in operating assets while financial expenses, personnel expenses, advertising expenses and etc., are declined. Total operating expenses rose 13% yoy to 26.2bn. ( million) 17/6 18/6 % Operating revenue 24,224 27,682 3, % Interests on operating loans 13,99 15,649 2, % Revenue from installment receivable 3,954 3, % Revenue from credit guarantee 3,212 3, % Operating expenses 23,132 26,218 3, % Financial expenses 2,139 1, % Provision of allowance for doubtful accounts 6,289 8,686 2, % (Bad debt write offs) 6,668 7,884 1, % Provision for loss on interest repayment (Interest repayment) 6,858 3,15-3, % Other operating expenses 14,47 15,489 1,82 7.5% Advertising expenses % Personnel expenses 3,884 3, % Sales promotion expenses 1,987 2, % Operating profit 1,91 1, % Ordinary profit 1,229 1, % Extraordinary income Profit attributable to owners of parent 1,976 1, % 2

4 Loan Business(1): Trends of Unsecured Consumer Loan Market Unsecured loans market: Since bottoming out in FY214/3, the market has performed steadily, recovering to 1.5tr in FY218/3, a 3% yoy increase. Money lenders: Loans outstanding by lenders have gradually recovered to 4.1tr. Of these, consumer finance companies recorded 2.4tr, a 4% yoy increase, while credit card companies reported 1.7tr, a 1% decrease. ( trillion) 8/3 9/3 1/3 11/3 12/3 13/3 14/3 15/3 16/3 17/3 18/3 Unsecured loan market Financial institutions Consumer finance Credit card companies tr Financial institutions Credit card companies Consumer finance 1 8.7tr 8.8tr 9.2tr 9.7tr 1.2tr 1.5tr 5 ( tr) 8/3 9/3 1/3 11/3 12/3 13/3 14/3 15/3 16/3 17/3 18/3 Source : Consumer finance and Credit card companies :Statistic by the Japan Financial Services Association. Financial institutions :Statistic by The Bank of Japan. (Consumer loan outstanding at domestic banks and credit unions) 3

5 Loan Business(2): Operating Loans Outstanding (Consolidated/ AIFUL) Loan Outstanding: Consolidated loans outstanding continued performing steadily, by increasing 14% yoy to 487.4bn. Of these, unsecured loan surged to 417.1bn, a 15% yoy increase and small business loan amounting 49.bn, a 14% yoy increase. Consolidated AIFUL ( million) 17/6 18/3 18/6 ( million) 17/6 18/3 18/6 Loans outstanding 426, ,18 487, % Unsecured 361,932 44,56 417, % Small business 42,71 47,37 49, % Loans outstanding 329,86 36,31 37, % Unsecured 39, , , % Small business 4,769 5,85 6, % 6 Small business loan Secured loan Unsecured loans 6 Small business loan Secured loan Unsecured loan bn 426.8bn 472.bn 487.4bn bn 329.8bn 36.bn 37.1bn /3 17/6 18/3 18/6 17/3 17/6 18/3 18/6 4

6 Loan Business(3): New Accounts and Loan Volume (AIFUL) New accounts:due to effective advertising, number of loan applications increased by 11% yoy to 116 thousand and number of new accounts increased by 21% yoy to 53 thousand. Loan Volume: Loan volume increased by 11% yoy to 5.bn thanks to favorable lending at both new and existing accounts. Situation of Unsecured Loansʼ New Accounts Situation of Loan Volume (num) 16/6 (3M) 17/6 (3M) 18/6 (3M) ( million) 16/6 (3M) 17/6 (3M) 18/6 (3M) New applications 1,336 14, , % Loan volume 42,711 44,951 5,9 11.4% New accounts 46,964 44,346 53, % New accounts 6,852 6,53 8, % Contract rate 46.8% 42.5% 46.5% +4.pt Existing accounts 35,858 38,421 41,879 9.% 15, New applications New accounts Contract rate 6 Loan volume Loans to new accounts 125, 44.3% 46.8% 42.5% 46.5% 5.% 5 5.bn 1, 116,77 4.% 4 75, 3.% 3 5, 53,993 2.% 2 25, 1.% 1 8.2bn (num) 15/6 16/6 17/6 18/6.% 15/6 16/6 17/6 18/6 5

7 Loan Business(4): Trends of Non-performing Loans (Consolidated) Bad Debt: Bad debt ratio excluding write-offs accompanying interest repayment remained at low and stable level of 1.1%. Non performing loan: Ratio of unsecured loan NPL increased slightly by.9 points to 9.5%. Status of Bad Debt Trends of NPL defined by FSA ( million) 17/6 (3M) 18/6 (3M) ( million) 17/6 18/6 Bad debt 6,814 8, % Bad debt except write offs related to interest repayment 6,54 7, % Ratio to operating loans 1.1% 1.2% +.1pt 15 1 Bad debt ration except write offs related to interest repayment Other bad debt Write-off related to interest repayment Ratio to operating loans 1.% 1.1% +.1pt Ratio to operating loans (excluding write-off related to interest repayment) 1.2%.9% 1.1% 1.1%.9% 1.% 1.2% 1.1% 8.bn 1.5% 1.%.5%.% NPL amount 66,493 72,84 9.5% 12 8 Unsecured loan NPL 31,256 39, % Ratio of NPL* 14.6% 14.1% -.5pt Ratio of Unsecured loan NPL* NPL Unsecured loan NPL Ratio of Unsecured loan NPL 8.7% 8.6% 8.6% 9.5% +.9pt *NPL ratios are calculated based on the combined figures of loans outstanding and claims bankruptcy. 9.4% 9.5% 72.8bn 1.% 8.% 6.% 5 -.5% 4 4.% -1.% 2.% 15/6 16/6 17/6 18/6-1.5% 17/3 17/6 18/3 18/6.% 6

8 Credit Card Business: Situation of Credit Card (Consolidated) Credit Card Business: Transaction volume decreased 1% yoy to 171.1bn. Installment receivable increased 2% yoy to 98.4bn. Transaction Volume Installment receivable ( million) 16/6 17/6 18/6 ( million) 17/6 18/3 18/6 Transaction volume 165, , , % Installment receivable 96,53 1,46 98,412 2.% bn 165.9bn 174.2bn 171.1bn bn 96.5bn 1.4bn 98.4bn /6 16/6 17/6 18/6 17/3 17/6 18/3 18/6 7

9 Credit Guarantee Business: Situation of Credit Guarantee (Consolidated) Credit Guarantee Business: Credit guarantee has performed steadily mainly in small business loan, showing a 13% increase yoy to 88.5bn. Number of tie-up financial institutions increased steadily to 141, an increase of two business partners year on year. Credit Guanrantee Outstanding Tie-up Financial Institutions (AIFUL ( million) 17/6 18/3 18/6 (number) 17/6 18/3 18/6 Credit guarantee 78,135 86,465 88, % to consumers 67,427 75,158 76, % Tie-up financial institutions* *Decline due to merger at financial institutions are also reflected. to businesses 1,78 11,36 11,566 8.% 95 Credit guantee to businesses Credit guantee to consumers 145 N. of tie-up financial institutions bn 88.5bn bn 78.1bn /3 17/6 18/3 18/6 13 (num) 17/3 17/6 18/3 18/6 8

10 Overseas Business: Status of Overseas Market Entry A & A : Due to brisk demand for funds with a background of economic growth and rising consumption in Thailand, A&A achieved steady growth with loans outstanding totaling 19.2bn, a 187% yoy increase and number of accounts reaching 39 thousand, a 145% yoy increase. AIRA & AIFUL Public Company Limited (A&A) PT REKSA FINANCE SANSHU Finance Corporation Location Bangkok, Thailand Jakarta, Indonesia Shanghai, China Business Outline Consumer finance business Used car loan business Leasing business Other Info 215 年 9 より営業開始 Joined AIFUL Group in May 217 Joined AIFUL Group in April 215 Shanghai, China: SANSHU Highlight of A&A ( million) FY217 1Q FY218 1Q Loans outstanding 6,671 19, % Thailand: A&A Customer accounts (thousand) % Operating revenue 387 1, % Indonesia: Reksa Finance *Fiscal period of A&A is from January 1, to December 31. *Exchange rate (Thai Baht):B/S:FY217/1Q 3.26, FY218/1Q 3.4, +.14 P/L: FY217/1Q 3.24, FY218/1Q 3.43,

11 Funding Environment: Consolidated Funding Rate: Finding rate declined 41bps to 1.86%, mainly due to early redemption of 8% interest rate bond in July 217. Interest-Bearing Liabilities: Fund procurement increased 12% yoy to 451.9bn. Trends of Funding Rate (%) /3 17/3 17/6 18/3 18/6 Funding rate Trends of Interest-Bearing Liabilities ADR/Rescheduled obligation Bonds Liquidation Syndicated loan Other 451.9bn 435.5bn 43.8bn 369.4bn 184.5bn 175.8bn 135.5bn 125.2bn 99.5bn 66.3bn 65.1bn 64.2bn 67.2bn 78.1bn 311.4bn INDIRECT bn 144.1bn 171.8bn 185.9bn 194.6bn DIRECT 31.4bn 32.7bn 3.1bn 8.5bn 8.5bn 16/3 17/3 17/6 18/3 18/6 1

12 Trends of Interest Repayment(1): Interest Repayment Indices (AIFUL) Attorney Involvement Index: Attorney involvement accompanying interest repayment declined 28% yoy in the first quarter. Interest Repayment Claims: Total number of claims was 4,4, declined by 56% yoy in the first quarter. Attorney Involvement Index 4% 35% 3% 25% 2% 15% 1% 5% % (Index) ( 営業債権ベース ) May 27 (peak)=1 Upper: Other than interest repayment Lower: Attorney involvement accompanying interest repayment 26% 24% 25% 22% 24% 23% Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun FY217/3 FY218/3 FY219/3 Interest Repayment Claims 7, 6, 5, 4, 3, 2, Interest repayment claims -31% -25% -16% -17% -21% -25% -24% -28% -31% -32% -31% -29% -31% -36% -44% -42% -42% -41% -46% -51% -49% -48% -45% -56% -62% -62% -6% ( 営業債権ベース ) 3,7 3,5 2,9 % -2% -4% -6% -8% 1, 1,4 1,4 1,6-1% (num) Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun FY217/3 FY218/3 FY219/3-12% 11

13 Trends of Interest Repayment(2): Changes in Allowance and Interest Repayment Allowance related to Interest Repayment: Allowance at end of the first quarter was 22.9bn. Withdraw amount during the first quarter, declined by 52% yoy to 3.6bn. Provision for loss in Interest Repayment (Consolidated) (AIFUL) ( million) Interest repayment Waiver of principal Total Interest repayment Waiver of principal Total Allowance at the beginning of FY219/3 24,331 2,238 26,569 Withdraw (Interest repayment) 3,15-3,15 Withdraw (Waiver of principal) Provisions (reversal) Allowance at the end of FY219/3 1Q 21,146 1,768 22,915 22,158 2,238 24,396 2,931-2, ,226 1,768 2,995 Withdraw Amount of Interest Repayment and Waiver of principal (Consolidated) Interest repayment Waiver of principal bn bn 25.3bn 3.6bn 1 9.7bn 9.6bn 9.3bn 9.bn 8.7bn 8.3bn 7.7bn 8 7.6bn 7.6bn 6 6.1bn 6.4bn 5.1bn 4 3.6bn 2 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY216/3 FY217/3 FY218/3 FY219/3 12

14 Financial Result of AIFUL: Financial Results Summary ( million) 17/6 18/6 % Operating revenue 15,387 17,21 1, % Interest on operating loans 1,881 12,525 1, % Revenue from credit guarantee 2,744 2, % Recoveries of written off claims 1,352 1, % Operating expenses 14,965 15, % Financial expenses 1,797 1, % Provision of allowance for doubtful accounts 4,94 6,193 1, % Provision for loss on interest repayment Other operating expenses 8,263 8, % Operating profit 421 1, % Ordinary profit 615 1, % Extraordinary income Profit 1,351 1, % Loans outstanding 329,86 37,147 4, % Unsecured 39, ,21 42, % Credit guarantee 81,869 89,833 7, % Customer accounts (thousands) % Average yield 14.8% 14.9% +.1pt - Below 18% unsecured loan balanceʼs occupancy rate 97.3% 98.1% +.8pt - 13

15 Financial Results of LIFECARD: Financial Results Summary ( million) 17/6 18/6 % Operating revenue 7,481 8, % Revenue from installment receivables 3,914 3, % Interest on operating loans 1,386 1, % Revenue from credit guarantee % Operating expenses 6,481 7,586 1,15 17.% Operating profit % Ordinary profit 1, % Profit % Credit card transaction volume 174, ,188-3,89-1.8% Shopping 164,7 16,83-3,267-2.% Cashing 1,27 1, % Total receivable outstanding 163, ,842 3,65 2.2% Installment receivable 95,72 97,942 2,24 2.3% Loans 45,747 46, % Credit guarantee 21,39 21, % Number of new issue (thousands) % Number of card holders (thousands) 5,874 5, % 14

16 -Disclaimer- The figures contained in this presentation material with respect to AIFUL andaiful Groupʻs plans and strategies and other statements that are not historical facts are forward-looking statements about the future performance of AIFUL and AIFUL Group which are based on managementʼs assumptions and belief in light of the information currently available to it and involve risks and uncertainties. Therefore, actual results may differ from those in the forward-looking statements due to various factors. This English-translated presentation material was prepared solely for the convenience of English speaking investors. If any discrepancies exist, the original Japanese version always prevails. AIFUL and AIFUL Group shall not be liable forany loss or damages arising from this translation. 15