AEON FINANCIAL SERVICE CO., LTD. This is an abridged translation of the original Japanese document and is provided for informational purposes only. If there are any discrepancies between this and the original, the original Japanese document prevails.
FY2024 1Q
IR Presentation Material
July 1１, 2024
Stock Listing: Tokyo Stock Exchange, Prime Market
Code No: 8570
AEON Financial Service Co., Ltd. | 1 |
Financial summary
Results are improving as the effects of "selection and concentration"
to enhance corporate value are being realized Improved profitability and productivity of assets
- Asset Profitability
➢High-yield trade receivables※steadily expanded and contributed to earnings
Domestic: ¥811.7bn（１１０％YoY/＋¥34.6bn from the beginning of the FY）
Global: ¥957.1bn（１１５％YoY/＋¥51.5bn from the beginning of the FY ）
- Productivity
- Consolidated operating profit grew to ¥15.2 bn (166%YoY) by controlling the increase in operating expenses (105%YoY) against the expansion of operating revenue (110%YoY)
- Domestic： Expansion of transaction volume mainly in settlement, recovery of bank profitability in response to changes in the interest rate environment
Substantial increase in profit due to improved cost efficiency in sales promotion expenses (-1.3 bn in YoY) and curbed loan-loss related expenses
- Global： Recovery in the Malay region ahead of others, driving the Global business Although bad debt-related expenses remained at a high level, continued to strengthen credit and collection systems
AEON Financial Service Co., Ltd. | 2 |
The Highlights of the Consolidated Results
Consolidated
Operating | ¥127.９ bn |
Revenue | |
YoY
１10 ％
Domestic※
¥７５.３ bn
YoY
１０５ ％
Global
¥５３.１ bn
YoY
１１７ ％
FY202４ | Rate of |
Forecast | progress |
¥520.0 bn ２５ ％
Operating | ¥１５.２ bn | １６６ ％ | ¥６.３ bn | ７５３％ | ¥８.７ bn | 10７ ％ |
Profit | ||||||
Ordinary | ¥１５.９ bn | １６７ ％ | － | ー | － | ー |
profit | ||||||
Profit | ||||||
attributable | ¥6.0 bn | １６9 ％ | － | ー | － | ー |
to owners of | ||||||
parent
¥55.0 bn ２８ ％
¥55.0 bn ２９ ％
¥21.0 bn ２9 ％
※As a result of the domestic business integration in June 2023, the results of AEON Financial Service Co., Ltd., which had been included in the adjustment amount, are included in the domestic segment.
YoY is calculated by reorganizing the previous year's results into the changed segments.
AEON Financial Service Co., Ltd. | 3 |
[Domestic] Breakdown of Operating Profit
- Increased due to continued growth in card revenues and financial income, despite the negative impact of the sale of a subsidiary
- Continued to control sales promotion expenses with emphasis on cost-effectiveness despite an increase in bad debt-related expenses due to a rise in the balance of receivables
（Unit ： Bn JPY） | Sales | Bad debt | ||||||||||
promotion | related | |||||||||||
Installment | ||||||||||||
Revenue(-) | expenses | expense | ||||||||||
Revenue(+) | ||||||||||||
finance | ||||||||||||
▲１.２ | ||||||||||||
APF impact | ＋１.４ | |||||||||||
Expense(-) | Expense(+) | Financial | Revenue | |||||||||
revenue (APF impact) | ▲３.６ | |||||||||||
+3.1 | ▲2.６ | |||||||||||
Card | Securitization | |||||||||||
Revenue | ||||||||||||
revenue | ||||||||||||
▲２.３ Other | ||||||||||||
＋３.１ |
revenue
General and
administrative expenses, etc.
＋１.５
６.３
1.3 0.8
3/1Q
+２.３
Operating
revenue＋3.６
Operating
expenses▲１.８
２4/1Q
Elimination of
domestic segment
due to merger of AFS
and ACS
Impact: Operating
revenue -0.5
Main factors
[Operating revenue]
・Card revenue ＋3.１
（credit card business ＋1.9、Financing ＋1.１）
・Financial revenue ＋３.１ （Sales of securities ＋１.９、 interest and dividends ＋０.7）
・Other revenue ＋２.３
（Impact of consolidation of FeliCa PM ＋２.０）
[Operating expenses]
・Sales promotion expenses ▲１.２
（Strengthencontrolbyreviewingsalespromotionmeasures）
・Bad debt related expense ＋１.４
（Impact of increase in operating receivables balance)
・General and administrative expenses, etc. ＋１.５ （Impact of consolidation of FeliCa PM ＋１.７）
AEON Financial Service Co., Ltd. | 4 |
[Domestic] Credit card, e-money
Productivity
(Revenue growth)
- Credit card shopping transaction volume increased 105% YoY due to the launch of Gold Card exclusive benefits and promotion of AEON Pay usage
- Cash advance transaction volume increased by 102% YoY due to improved convenience of the application and strengthened appeal through outbound calls, etc.
Settlement Transaction Volume
Cash advance transaction volume
（Unit ： Bn JPY） | 2,353.6bn | （Unit ： Bn JPY） | |||||
E-money：503.8bn | |||||||
Shopping：１,849.8bn | |||||||
2,400 | E-money volume | 120 | 102.7bn | ||||
Shopping volume | |||||||
1,800 | 90 | ||||||||
1,200 | 60 | ||||||||
600 | 30 | ||||||||
0 | 0 | ||||||||
2０/1Q | 2１/1Q | 2２/1Q | 2３/1Q | 24/1Q | 2０/1Q | 2１/1Q | 2２/1Q | 2３/1Q | 24/1Q |
AEON Financial Service Co., Ltd. | 5 |
[Domestic] Expansion of Group synergies
Productivity
(Revenue growth)
- Launched Gold Member benefits at AEON MALL Increased incentives to visit AEON MALL, leading to an increase in both the number of customers and the amount of payment
- Continue to enhance group benefits to maximize group synergy
Start of new special offers at AEON MALL (from April 2024)
At AEON MALL Specialty Stores
Customer Appreciation Day (20th and 30th of every month)
AEON MALL Customer Appreciation Day
Credit Card Transactions
（Same day of the previous year, same scale comparison）
N0. of users ＋３０％
Transactionvolume ＋６０％
AEON Financial Service Co., Ltd. | 6 |
［Domestic］ AEON Pay
Productivity
(Revenue growth)
- AEON Pay has more than 10 million members, and the number of locations where AEON Pay can be used is steadily increasing.
- Advanced use of AEON Pay in everyday situations, and the inclusion of small-value payments has contributed to an increase in the amount of payments per capita
Number of members and available locations
AEON Pay members
No. of members
１０.２9million | |
＋１.９３million | |
23/1Q | 24/1Q |
Available locations
１.９9locations | |
＋１.23locations | |
23/1Q | 24/1Q |
Settlement amount
Vs. AEON Pay non-registered members
＋17,000yen/month
AEON Financial Service Co., Ltd. | 7 |
［Domestic］ Operating receivables
Asset
Profitability
Improvement
- 110% YoY growth is expected to continue and recover to pre-Pandemic levels in 2H
Operating receivables
Breakdown
（Unit ： Bn JPY） Revolving
1,000 | credit・ | |
Ｉｎｓｔａｌｌｍｅｎｔ | ||
finance |
８２４.１bn
Cash advances・
Unsecured loans
８１１.７bn
Difference | ||
YoY | at beginning | |
of FY | ||
■ Revolving credit | １２０％ | ＋１７.５bn |
750
500
250
0
20/１Q 2１/１Q 22/１Q 2３/１Q 24/1Q
■ | Ｉｎｓｔａｌｌｍｅｎｔ | 1１３％ | ＋２.０bn |
finance | |||
■ Cash advances | １０５％ | ＋１４.８bn | |
■ | Unsecured loans | ９８％ | ＋0.２bn |
（Bank card loans, etc.） | |||
Total | １１０％ | ＋３４.６bn | |
AEON Financial Service Co., Ltd. | 8 |
[Domestic] Improved UX through app improvements
Asset
Profitability
Improvement
- Improved functionality and visibility of the "AEON Wallet" contributed to an increase in the number of revolving transactions and an increase in revolving balances
Operating Receivables Growth Rate
120% | Revolving | ||||
credit・ | Cash advances | ||||
Ｉｎｓｔａｌｌｍｅｎｔ | |||||
110% | finance | ||||
100%
90%
80% | ２1/1Q | 22/1Q | 23/1Q | 24/1Q |
Recognition Interest
Confirmation
Action
Change of application leads and improvement of visibility
➢Number of visitors to the revolving credit change screen
４times before the change
Equipped with simulation function
（May 2023）
➢Completion rate of revolving loan applications by users
Approximately ７０％
No. of applicants for revolving change
+３０％ YoY
AEON Financial Service Co., Ltd.
9
［Domestic］ Control of bad debt-related expenses | Productivity |
(Cost control) | |
- Ratio of bad debt-related expenses to operating receivables remains low
Quarterly Bad Debt Expense Ratio
Improved productivity in debt collection
*Ratio of bad debt-related expenses to the total balance of revolving, installment, cash advance, and unsecured loans
Updating customer information
2.0%
Promote registration information and maintenance of addresses, contacts, etc. on outbound calls
1.0%
SMS
0.0%
SMS-based guidance efficiency
Send SMS confirming the procedure details after the call
Improved accuracy of information
23/1Q | 23/2Q | 2３/3Q | 23/4Q | 24/1Q |
AEON Financial Service Co., Ltd. | 10 |
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AEON Financial Service Co. Ltd. published this content on 11 July 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 11 July 2024 07:15:06 UTC.
