Acom : Annual(1249KB)

Earnings Release Presentation

Financial Results for the Fiscal Year Ended March 2024

May 13, 2024

• Disclaimer

The figures contained in this presentation material with respect to ACOM Group's plans and strategies and other statements that are not historical facts are based on information available at the date of announcement of this presentation material. However, there are some potential risk factors in the Group's business management. Therefore, the actual results may differ from the forecast.

∎ Notation

L.C. Business	Loan and Credit Card Business
MUCG	MU Credit Guarantee Co., LTD.
yoy	year on year percentage point
ytd	year to date percentage point
(E)	estimates
EB、EASY BUY	EASY BUY Public Company Limited
ACF	ACOM CONSUMER FINANCE CORPORATION

The trend of requests for interest repayment is also highly uncertain, due to its sensitivity to changes in external environmental changes. The Group may have to make additional provision for loss on interest repayment.

Actual results may differ from forecast values due to various risk factors, not limited to those mentioned above.

• Reference

ACOM. CO., LTD.

Public & Investor Relations Office

[phone] [e-mail]

2

Contents

01 02

FY March 2024		FY March 2024
Financial Results	Supplemental
Summary		information
Consolidated Financial	4	Loan and Credit Card Business	26
Summary		Guarantee Business	31
Dividend Status	6
Overseas Financial Business	35
Loan and Credit Card Business	7	Interest Repayment	39
Guarantee Business	15	Provision for Bad Debts	41
Financial Expenses	43
Overseas Financial Business	17
Human Resources	20
External Evaluation	21
Annual Forecast	23
For the FY March 2025

Appendix

Market Volume	46
Annual Forecast	48
For the FY March 2025
Interest Repayment	50
Background to Borrowing	53
Yardstick of Return on	54
Assets (ROA) by Business
Segments
Vision and Mid-term	55
Management Policy
Mid-term Management	57
Plan

3

Consolidated Financial Summary (Business Scale)

• Consolidated outstanding Balance increased by 1.0% compared to the Estimates (up 7.5% yoy) to ¥2,531.0 bn, owing to favorable trend in domestic borrowing by new and existing customers and the impact of the depreciation of yen against baht.
• Achieved the target of outstanding balance of ¥2.5 trillion in the mid-term plan one year ahead.

L.C. Business

0.4%

2,244.9

192.7

1,173.0

871.1

22/3

Guarantee		Overseas			Others		yoy	Consolidated
Business		Financial			(Billions of yen)
		Business	7.5%	Receivables
4.9%			Achieved
					Outstanding
							the target
	2,505.4 2,531.0		of the
2,354.5		mid-term
				243.2		plan
		233.1	L.C. Business
219.4				one year
								Ahead!
1,212.8			1,276.0	1,278.2			Guarantee
									Business
914.5			988.1	1,001.3			Overseas
									Financial
23/3			24/3(E)	24/3			Business

¥2,531.0bn

yoy＋7.5%

compared to E +1.0%

¥1,001.3bn

yoy＋9.5%

compared to E +1.3%

¥1,278.2bn

yoy＋5.4%

compared to E +0.2%

¥243.2bn

yoy+10.8% compared to E +4.4%

4

Consolidated Financial Summary (Business Performance)

• Operating Revenue increased by 7.6% yoy (up 0.6% compared to E) to 294.7 bn, owing to the impact of the depreciation of yen in addition to the expansion of business scale.
• Operating Profit decreased by 1.1% yoy (up 2.2% compared to E) to ¥86.3 bn due to the increase of Provision for Bad Debts and advertising expenses.
• Profit attributable to owners of parent decreased by 3.3% yoy (up 0.4% compared to E) to ¥53.0 bn, mainly due to increase in income taxes-current.

Operating Revenue

Consolidated	¥294.7bn
yoy＋7.6%
		compared to E ＋0.6%
	L.C. Business	¥156.0bn
	yoy＋7.5%
		compared to E +0.5%
	Guarantee Business	¥70.7bn
	yoy＋6.8%
		compared to E -0.2%
	Overseas Financial	¥61.8bn
	Business	yoy＋9.5%
		compared to E ＋1.5%

Operating Profit

Consolidated		¥86.3bn
	yoy -1.1%
			compared to E +2.2%
	L.C. Business	¥41.7bn
			yoy +2.7%
	Guarantee Business	¥22.6bn
			yoy -11.6%
	Overseas Financial	¥22.3bn
	Business		yoy＋13.7%
	Profit		yoy -3.3%
Attributable to	¥53.0bn ( compared to E +0.4%)
Owners of Parent

5

Dividend Status

• Basic Policy on Capital Policy：Maintain and improve financial soundness and increase shareholder returns
• Basic Policy on Dividend Payment：Expand shareholder returns

based on high profitability and appropriate capital adequacy

Our Target in FY March 2025

(Mid-Term Management Plan) Return to Shareholders

Shareholders' Profitability

Equity

ROE	： around 10%
Shareholders'	： around 25%
Equity Ratio*¹
Dividend	Not decided
per Share	： Aim for stable amount and
Continuous payments of dividend
Dividend	： around 35%
Pay-out Ratio

FY March 2024

Profitability

ROE 8.8%

Operating Revenue：¥294.7 bn compared to E +0.6％

Operating Profit ： ¥86.3 bn compared to E +2.2%

Shareholders'	Shareholders Equity Ratio*¹	23.3%
equity

Progress towards the target 25%

Return to	Interim Dividend ¥6 Year-end Dividend ¥6
Shareholders

Business expansion exceeding our estimates and

strong demands from new customers, Year-end dividend is ¥6*² per share

and annual dividend is 12 per share as forecasted.

Dividend payout ratio was 35.4％

*1	The equity	ratio, calculated by adding the balance of credit guarantees to total	consolidated assets.	6
*2	The year-end dividend for the fiscal year ended March 31, 2024 is subject to approval at the annual shareholders' meeting to be held in June 2024.

Loan and Credit Card Business｜Business Environment

External Environment

The economy recoveries

gradually

Japanese socio-economic activities are returning to normal

against a backdrop of COVID-19 being classified

as a Category V Infectious Disease and various government policies, resulting in economic conditions showing signs of gradual recovery.

Economy in Japan is revitalized compared to pre-COVID-19.

Strong demands for funds

In the non-bank sector, demand for funds is

booming, including from those who have not had

access to consumer finance in the past.

Operating Strategies

Acquisition of new

customers

We invested efficiently in advertising while keeping acquisition costs low, resulting in favorable acquisitions of new customers.

Sales to existing customers

Receivables outstanding has increased higher than estimates, mainly owing to the review of credit screenings in connection with the active acquisition of a certificate of income.

7

Loan and Credit Card Business｜Business Scale

Loan

3.5%

915.8

75.0

840.8

Credit card	yoy (Billions of yen)		Reached
			9.5%
	1.0%	5.0%		¥ 1trillion
-5.8%		914.5	1,001.3	988.1
862.8	871.1	122.3	121.3
103.5
78.7	87.9

784.0	783.1	810.9	879.0	866.8

20/3

21/3

22/3

23/3

24/3

24/3(E)

Owing to strong demands for funds and various sales measures,

both Loan and Credit card business expanded to a scale exceeding those before the COVID-19 disaster,

and reached ¥1 trillion in outstanding balance.

8

Loan and Credit Card Business｜No. of New Customers

No. of New Customers		yoy	(Thousands)

29.8% 32.6%

Compared to E

39.0% +30,000cases

2.7%

-31.3%

400

430 -12.9%

375

261

309

233

179

20/3

21/3

22/3

23/3

24/3(E)

24/3

25/3(E)

No. of New Customers reached 430 thousands. It exceeded the estimates of 400 thousands.

9

Loan and Credit Card Business｜Advertising Expenses(ACOM)

Annual

Adv. Expenses		(Billions of yen)
Acquisition Costs per New Customers (Thousands of yen)
61.6	64.9	57.3
48.1		45.4
	151	177
	195	198
126
110

Quarterly

Adv. Expenses	(Billions of yen)
Acquisition Costs per New Customers	(Thousand of yen)

52.4

46.7 48.1 42.9 44.0

49

50

54

46

47

20/3

21/3

22/3

23/3

24/3

24/3(E)

4Q

1Q

2Q

3Q

4Q

Owing to advertising efficiently, advertising expenses were lower than estimates.
Since new customers are the stable source of future revenue,
we view advertising expenses as an upfront investment for the future.	10