J Trust Co., Ltd. 1 st Quarter of FY 2017 Earnings Presentation Material. at Belle Salle Nihonbashi. 17 th August, 2016

Transcription

1 1 st Quarter of FY 2017 Earnings Presentation Material at Belle Salle Nihonbashi 17 th August, 2016 J Trust Co., Ltd. Copyright(C)2016 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, FY2017 reflects figures from January 2016 till March 2016 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 2016, and for Financial Business in Southeast Asia indicates the end of March 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 FY2017

6 Financial Results for FY2017 Quarterly operating revenue achieved the highest-ever level of 20.5 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 FY2017 I. Domestic Financial Business Bullish expect to exceed full-year targets II. Financial Business in South Korea Growing reduced risks of consolidating the accounts, and the profit level is steady III. 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 FY2017

9 Overview of Financial Results for FY2017 /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 20.5 billion yen Under J-GAAP Consolidated Summary (in 100 million yen) Operating revenue Operating profit /03 2Q 3Q 4Q TOTAL 2017/ /03 2Q 3Q 4Q TOTAL 2017/03 *rounding off the number 9

10 Overview of Financial Results for FY2017 /consolidated summary (Compared with the same period of FY2016) 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 100 million yen) FY2016 FY2017 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) 10

11 Overview of Financial Results for FY2017 /segment operating revenue (Compared with the same period of FY2016) Domestic Financial Business is solid Financial Business in South Korea decreased due to the exchange rate ( FY2016= KRW FY2017= KRW) The operating revenue of Financial Business in Southeast Asia is increasing steadily Under J-GAAP Operating revenue (in 100 million yen) FY2016 FY2017 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 FY2017 /segment operating revenue (Compared with the same period of FY2016): Local currency approximation Increased 11.8 billion KRW in Financial Business in South Korea Increased 70.6 IDR billion in Financial Business in Southeast Asia Under J-GAAP Operating revenue Financial Business in South Korea in 100 million won / /03 in IDR 100 million 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1, Financial Business in Southeast Asia 3, /03 4, /03 Exchange rate:yen=won Exchange rate:yen=idr 2016/03 =0.1107won (Apr.-June 2015 Avg.) 2016/03 =0.0094IDR (Jan.-Mar Avg.) 2017/03 =0.0930won (Apr.-June 2016 Avg.) 2017/03 =0.0086IDR (Jan.-Mar Avg.) 12

13 Overview of Financial Results for FY2017 /segment operating profit (Compared with the same period of FY2016) 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 100 million yen) FY2016 FY2017 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 13

14 Overview of Financial Results for FY2017 /segment operating profit (Compared with the same period of FY2016): Local currency approximation Increased 2.2 billion KRW, Financial Business in South Korea Improved billion IDR, Financial Business in Southeast Asia Under J-GAAP Financial Business in South Korea in 100 million won 25 Operating profit Financial Business in Southeast Asia in IDR 100 million ,000-1,500-2,000-2, , / /03-3, / /03 exchange rate:yen=won exchange rate:yen=idr 2016/03 =0.1107won (Apr.-June 2015 Avg.) 2016/03 =0.0094IDR (Jan.-Mar Avg.) 2017/03 =0.0930won (Apr.-June 2016 Avg.) 2017/03 =0.0086IDR (Jan.-Mar Avg.) 14

15 Overview of Financial Results for FY2017 /real earning power of business 600 million yen of negative goodwill, which was originally posted in FY2015, 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 100 million yen) /03 Operating Profit Negative goodwill 2017/03 Operating profit (Real earning power/ estimated) 15

16 Performance and Results by Segments

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 100 million yen) Operating revenue Operating profit / / / /03 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 600 Size of guarantees Apartment Loans Total 533 (in 100 million yen) Approved Apartment Loans (in 100 million yen) / / /

19 Domestic Financial Business: Servicer business The amount of receivables continued to increase because of successful purchased of NPLs FY2017 s target is billion yen. The achievement rate is 156% (Also, already achieved FY2018 target of billion yen.) 7,000 Amount of receivables (in 100 million yen) 6,879 6,000 5,000 FY2018 targets: 5,008 FY2017 targets: 4,409 4,679 4,000 3,492 3,000 2,572 2,833 2,000 1,000 1,196 1,251 1, / / / / / / / /06 19

20 Financial Business in South Korea 20

21 Financial Business in South Korea: operating revenue/operating profit Financial Business in South Korea decreased due to the foreign exchange rate(2016/03 =0.1107KRW 2017/03 =0.0930KRW) Generating positive operating profit, the performance is on upward trend Under J-GAAP Financial Business in South Korea (in 100 million won) Operating revenue Operating profit / / / /03 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 (in 100 million won) 1,000 Operating revenue 160 Operating profit /03 J-GAAP /03 K-GAAP /03 J-GAAP /03 K-GAAP reference rate:1won=0.0896yen *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: billion KRW) It is double the amount of avg billion KRW last year Amount of loan disbursed per month (in 100 million won) 2,000 JT Capital 1,893 1,800 1,600 1,400 1,200 1, JT Savings Bank JT Chinae Savings Bank 1, avg 979 1,008 1,364 1,284 avg 1,352 1,409 1,166 1,508 1,493 avg 1,389 avg 1,708 1,645 1, / / reference rate:1won=0.0896yen 23

24 Financial Business in South Korea : loan balance Loan balance increased steadily Loan balance (in 100 million won) 22,000 21,000 20,000 19,403 19,662 20,148 20,622 21,376 19,000 18,291 18,480 18,806 18,000 17,000 17,376 17,340 17,175 17,212 17,267 17,296 17,801 16,000 15,000 15/ / / reference rate:1won=0.0896yen 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 100 million won) 20, % Loan disbursed by group companies Purchased receivables Delinquency ratio 21, % 3, % 15, % 25.00% 10,000 6, % 18, % 5, % 5.64% 5.00% 0 14/ / / % reference rate:1won=0.0896yen * definition of NPL: loans that are delinquent for 30 days or more 25

26 Financial Business in South Korea/in total *4x companies The real earning power under J-GAAP is estimated 800 million yen, excluding the amount of amortization of negative goodwill Under J-GAAP Total 4x companies of operating profit (estimated) (in 100 million won) /03 Actual Amount of amortization negative goodwill 2017/03 Real earning power 26

27 Financial Business in South Korea /decreasing factor of operating profit negative goodwill Negative goodwill posted in FY2015 impacted consolidated operating profit As of June 2016, the amount of unamortized is 900 million yen (which will be amortized by FY2017) Under J-GAAP Impact of negative goodwill on operating profit (as of the end of June 2016) (in 100 million yen) 95 Amortized 80 in FY2016 Amortized 6 in Negative goodwill as of Mar (JTCK and JTSB were acquired) Actual as of Mar 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 (in 100 million yen) FY2017 2Q 3Q 4Q Under J-GAAP Jan.-Mar Apr.-June 2016 July-Sept Oct.-Dec 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 100 million yen) Operating revenue Operating profit / / / /03 30

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 100 million) 11.22% 11.37% % 10.55% 8.43% 8.04% 7.84% % / 4~6 7~9 10~ / 1~3 2015/ 4~6 7~9 10~ / 1~3 2015/ 4~6 7~9 10~ / 1~3 reference rate: 1 IDR=0.0086yen 31

32 Financial Business in Southeast Asia Bank JTrust Indonesia: operating assets and NPL ratio Operating assets accumulated steadily by strengthening sales force 120, ,000 80,000 Operating assets and NPL ratio 7.50% 7.50% 6.90% 6.40% 80,735 83,157 83,806 84,081 86,344 88,656 84,374 87,173 93,870 93,870 (in IDR 100 million) 8.00% 100, % 98, % 5.00% 60, % 4.90% 4.00% 40, % 2.80% 2.60% 2.60% 2.50% 1.90% 3.00% 2.00% 20, % / % reference rate: 1 IDR=0.0086yen 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 9.50% Cost of Funds % LDR 92.01% 9.00% 8.50% 8.00% 8.97% 8.87% 8.42% 8.15% 8.30% 8.18% 8.15% 8.04% 8.01% 90.00% 80.00% 70.00% 81.99% 76.29% 77.09% 76.83% 75.51% 85.35% 82.35% 85.15% 85.10% 88.34% 85.30% 7.50% 7.69% 7.56% 7.84% 60.00% 7.00% 50.00% 6.50% 0% 15/ / % 0% 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 13,000 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 2016/03) COF from the product: 6.0%~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 800 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 (in 100 million yen) Operating revenue Operating profit / / / /03 *Group Lease: Group Lease PCL listed on the Stock Exchange of Thailand 37

38 Investment business: operating revenue/operating profit December 30 th 2015: Converted GL's convertible bond into shares No. of converted shares: 98.1million 1 share=18 baht (5.349 billion yen) Stock price on June 30 th share = 36 baht ( billion yen) Difference: 5 billion yen (estimated) Unrealized gain eye on the future in investment 38

39 Non-Financial Business 39

40 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 100 million yen) Operating revenue Operating profit / / / /03 *Non-Financial Business: real estate business and general entertainment business 40

41 New challenge Bitcoin exchange J-Bits has started in June 2016 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.. 41

42 Progress Report on the Full-Year Target 42

43 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 FY2017 Achievement rate (in 100 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 43

44 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 FY2017 Achievement rate (in 100 million yen) To achieve % % Investment Business % 17 Non-Financial Business/MISC Others Total % 102 *Full-Year target of Non-Financial Business: general entertainment business =7 billion yen real estate business=6 billion yen 44

45 Others 45

46 Others/About shares buyback Flexible share-buy back for enhancing the capital efficiency The results for the shares buyback of the past year Total number of shares subscribed Total share acquisition value November 11 th ,250,000 shares 6.2 billion 64 million yen August 15 th ,000,000 shares 4.9 billion 26 million yen August 16 th ,188,300 shares 2.3 billion 52 million yen 46

47 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 30 th, 31 st 2016 (Tokyo/Osaka) Total participation :638 people Sept. 8 th, 9 th 2016 (Tokushima/Ehime) To be held Exhibit in Nikkei IR Investment Fair 2016 Aug. 26 th, 27 th 2016 (Tokyo) expected around 16,000 individual investors Company information session(osaka) 2. Continuous conducting overseas roadshow From 3Q FY2017 to 4Q FY2017 in U.S, the UK and ASIA Nikkei IR Fair (Tokyo)*In

48 Others/Our dividend policy Paying dividend with 8 consecutive years Will pay dividend of 12 yen this fiscal year Change in dividend Dividend End of the year Mid-Term 2 First half: 6 yen per share Second half: 6 yen (plan) will add 2 yen dividend compared with the previous year previous yearʼs dividend was included 3 4 commemorative (2yen) ( 予定 ) 48

49 APPENDIX 49

50 Overview of Financial Result for 1 st Quarter/Consolidated summary (progress in quarterly) Under IFRS (unaudited) 800 Operating revenue Operating profit (in 100 million yen) /03 2Q 3Q 4Q TOTAL 2017/ /03 2Q 3Q 4Q TOTAL 2017/03 50

51 Overview of Financial Result for 1 st Quarter/Consolidated summary (compared with the period of FY2016) Under IFRS (unaudited) (in 100 million yen) FY2016 FY2017 Difference Operating revenue Operating profit Profit attributable to owners of parent

52 Overview of Financial Result for 1 st Quarter/Segment operating revenue (compared with the period of FY2016) Under IFRS (unaudited) (in 100 million yen) FY2016 FY2017 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 52

53 Overview of Financial Result for 1 st Quarter/Segment operating profit (compared with the period of FY2016) Under IFRS (unaudited) (in 100 million yen) FY2016 FY2017 Difference Domestic Financial Business ±0 Financial Business in South Korea Financial Business in Southeast Asia Investment Business Non-Financial Business 1 1 ±0 MISC Total *Non-Financial Business: Real estate business and General entertainment business *MISC: main office, system, consolidation adjustments, and others 53

54 EBITDA after adjustment 180 (in 100 million yen) * / / / / / / / / / /03 *Simply multiplied by 4 of the numerical number for FY

55 Other comprehensive income Under J-GAAP (in million yen) Other comprehensive income FY2016 FY2017 Valuation difference on available-for-sale securities 136 4,865 Foreign currency translation adjustment -3,469-10,793 Remeasurements of defined benefit plans Total accumulated other comprehensive income ,445-6,027 55

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