Earnings Release Presentation
The First Quarter Financial Results for the Fiscal Year Ending March 2024
July 28, 2023
This is Okamoto from the PR & IR Office of ACOM CO., LTD. Thank you very much for taking time today.
First, I will explain the business environment, so please turn to page 3 of the presentation materials.
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∎ Disclaimer | ∎ Notation | |
The figures contained in this presentation material with | L.C. Business | Loan and Credit Card Business |
respect to ACOM Groupʼs plans and strategies and other | MUCG | MU Credit Guarantee Co., LTD. |
statements that are not historical facts are based on | yoy | year on year percentage point |
information available at the date of announcement of this | ytd | year to date percentage point |
(E) | estimates | |
presentation material. However, there are some potential | EB、EASY BUY | EASY BUY Public Company Limited |
risk factors in the Groupʼs business management. | ACF | ACOM CONSUMER FINANCE CORPORATION |
Therefore, the actual results may differ from the forecast. | ||
The trend of requests for interest repayment is also highly | ||
uncertain, due to its sensitivity to changes in external | ∎ Reference | |
environmental changes. The Group may have to make | ACOM. CO., LTD. | |
additional provision for loss on interest repayment. | Public & Investor Relations Office | |
Actual results may differ from forecast values due to | +81-3-6865-6474 |
various risk factors, not limited to those mentioned above. | ir@acom.co.jp |
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Business Environment
Japan
Thailand
Philippines
- Japanese socio-economic activities are returning to normal, resulting in economic conditions showing signs of gradual recovery.
- There are risks that could push down the Japanese economy, such as price hikes due to growing tension in the international situation and soaring resource prices on a global scale, as well as concerns over increased financial instability due to prolonged global monetary tightening.
- In the nonbank business sector, the demand for funds shows a sign of steady recovery.
- Economic conditions showed signs of stable progress as the economic growth rate in 1Q was higher compared to the previous fiscal year, due to strong consumer spending.
- Future trends need to be closely monitored on an ongoing basis as political unrest associated with the change of government remains.
- GDP growth remained high as deregulating economic activity has been sufficiently progressed.
- The economy is returning to the trend of high growth seen before the spread of COVID-19.
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First, upper row, regarding the business environment in Japan, the economy continues to recover moderately as socioeconomic activities normalize, backed by the shift of new coronavirus infections to category five and various policies.
However, there are risks that could depress the economy, such as rising prices due to tensions in international affairs and soaring global resource prices, as well as concerns about increasing financial instability due to prolonged global monetary tightening.
In the third bullet, non-banking industries also saw a pickup in demand for funds.
In the Kingdom of Thailand in the middle section, the economy remained stable, with strong consumer spending leading to higher economic growth in Q1 than in the previous quarter. However, there is also political uncertainty associated with the change of government, and trends need to be closely monitored.
In the Republic of the Philippines, which can be seen at the lower table, GDP growth has been maintained at a high level due to the easing of restrictions on economic activities, and has returned to the trend of high growth prior to the spread of COVID-19.
Please see page 4 for a summary of the financial results.
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Consolidated Financial Summary (Business Scale)
- Consolidated Receivables Outstanding increased by 5.3% yoy to ¥2,397.9 biliion owing to favorable trend in borrowings by new and existing customers in domestic business and the impact of the depreciation of yen against baht.
L.C. | Guarantee | Overseas | (Billions of yen) | ||||||||||||||
Business | Business | Financial Business | Others | yoy | Consolidated | ¥2,397.9bn | |||||||||||
0.4% | 4.9% | 4.1% | 1.8% | 5.3% | Receivables | ||||||||||||
Outstanding | (yoy+5.3%) | ||||||||||||||||
2,244.9 | 2,354.5 | 2,450.3 | 2,276.6 | 2,397.9 | ¥937.3bn | ||||||||||||
219.4 | 219.6 | 225.9 | L.C. Business | ||||||||||||||
192.7 | 207.3 | ||||||||||||||||
(yoy+6.5%) | |||||||||||||||||
1,173.0 | 1,212.8 | 1,268.8 | 1,181.4 | 1,226.8 | ¥1,226.8bn | ||||||||||||
Business | |||||||||||||||||
Guarantee | |||||||||||||||||
Overseas | (yoy+3.8%) | ||||||||||||||||
954.6 | 937.3 | ||||||||||||||||
871.1 | 914.5 | 879.9 | ¥225.9bn | ||||||||||||||
Financial | |||||||||||||||||
Business | (yoy+9.0%) | ||||||||||||||||
22/3 | 23/3 | 24/3(E) | 22/6 | 23/6 | |||||||||||||
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First, on the right side, the overall consolidated receivables outstanding increased 5.3% YoY to 2,397.9 billion yen. There are two main causes.
The first was that new and additional uses were strong as demand for funds for leisure, travel, and other activities increased against the background of the shift of new coronavirus infections to category five and various policies. The second is that the balance was boosted by the foreign exchange impact of the weaker yen and stronger baht.
Looking at the receivables outstanding by business segment, the loan and credit card business increased 6.5% YoY to 937.3 billion yen. Guarantee business increased 3.8% to 1,226.8 billion yen. Overseas financial business increased by 9% to 225.9 billion yen.
Please refer to page 5.
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Consolidated Financial Summary (Business Performance) (Millions of yen、%)
2022/6 | 2023/6 | 2024/3 | Progress | ||||
Results | Results | yoy | Forecast | yoy | |||
1 | Operating Revenue | 66,514 | 70,926 | 6.6 | 284,300 | 3.8 | 24.9 |
2 | Loan and Credit Card Business | 36,035 | 37,750 | 4.8 | 151,800 | 4.6 | 24.9 |
3 | Guarantee Business | 15,956 | 16,976 | 6.4 | 70,200 | 5.9 | 24.2 |
4 | Overseas Financial Business | 13,006 | 14,689 | 12.9 | 56,900 | 0.6 | 25.8 |
5 | Operating Expenses | 41,120 | 48,998 | 19.2 | 193,900 | 4.0 | 25.3 |
6 | Financial Expenses | 1,025 | 1,036 | 1.2 | 4,700 | 17.1 | 22.1 |
7 | Provision for Bad Debts | 16,655 | 22,711 | 36.4 | 84,600 | 5.1 | 26.8 |
8 | Provision for Loss on Interest Repayment | - | - | - | - | - | - |
9 | Other Operating Expenses | 23,439 | 25,250 | 7.7 | 104,600 | 2.6 | 24.1 |
10 | Operating Profit | 25,394 | 21,927 | -13.7 | 90,400 | 3.6 | 24.3 |
11 | Ordinary Profit | 25,387 | 22,082 | -13.0 | 90,600 | 3.6 | 24.4 |
12 | Profit Before Income Taxes | 25,340 | 22,038 | -13.0 | 90,400 | 6.6 | 24.4 |
13 | Profit | 18,042 | 15,050 | -16.6 | 62,400 | 4.9 | 24.1 |
14 | Profit Attributable to Owners of Parent | 16,594 | 13,776 | -17.0 | 57,900 | 5.4 | 23.8 |
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Next, I will explain the business performance.
Initially, consolidated operating revenues increased 6.6% YoY to 70.9 billion yen.
By business segment, the loan and credit card business increased 4.8% YoY to 37.7 billion yen, mainly owing to business expansion. Guarantee business increased 6.4% to
16.9 billion yen owing to business expansion and periodic revision of guarantee fee rates. Overseas financial business increased 12.9% to 14.6 billion yen owing to business expansion and the impact of yen depreciation.
Consolidated operating expenses increased 19.2% YoY to 48.9 billion yen.
By expense, financial expenses increased 1.2% YoY to 1 billion yen. Provision for bad debts increased 36.4% to 22.7 billion yen. Other operating expenses increased 7.7% to 25.2 billion yen, mainly due to an increase in advertising expenses for ACOM.
As a result, operating income decreased by 13.7% YoY to 21.9 billion yen. Profit attributable to owners of parent decreased 17.0% to 13.7 billion yen.
Please turn to page 6 for an overview of the loan and credit card business.
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Acom Co. Ltd. published this content on 17 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 17 August 2023 06:07:04 UTC.