FY March 2023: 4Q Speech Script and Q&A(764KB)

Earnings Release Presentation

Financial Results for the Fiscal Year Ended March 2023

May 11, 2023

I'd like to extend my heartfelt appreciation to all of you for your kind support to and understanding of our company and attending the presentation on our financial results out of your busy schedules.

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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	[phone]

various risk factors, not limited to those mentioned above.	[e-mail]

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Contents

01 02

Appendix

FY March 2023

Financial Results

Summary

Business Environment	4
Consolidated Financial	5
Summary
Dividend Status	7
Review of the FY March	8
2023
Progress of Mid-Term	９
Management Plan

FY March 2023		Market Volume	39
Supplemental		Annual Forecast	41
information		For the FY March 2024
	Interest Repayment	42
Loan and Credit Card	19	Background to Borrowing	45
Business		Behavior
Guarantee Business	24	Impact from COVID-19	46
Overseas Financial Business	28	Vision and Mid-term	47
Interest Repayment	32	Management Policy
Provision for Bad Debts	34	Mid-term Management	49
Financial Expenses	36	Plan

Annual Forecast	16
For the FY March 2024

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Please go to page 3 of the presentation.

I will go over Item Number 1 and give you a summary of our financial results for FY ended March 2023.

Later, Mr. Okamoto, Chief PR and IR Officer, will go over Item Number 2 and give you supplementary information.

Please turn to page 4.

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Business Environment

Japan

Thailand

Philippines

• Japanese economy is heading toward recovery as social and economic activities gradually get back to normal.
• Due to tensions in international affairs and the global surge in raw materials prices, the impact on consumer spending associated with price hikes need to be closely monitored.
• In the nonbank business sector, signs of recovery in demand for funds are shown.
• Economy showed signs of recovery with an increase in consumer spending owing to the calming down of COVID-19 including the state of emergency declaration was lifted in October 2022.
• Future trends need to be closely monitored on an ongoing basis as inflation risks remains.
• GDP growth remained high as pent-up demand is generated by sufficient progress in deregulating economic activity
• Inflation hit a 14-year high due to price increases in food and energy.
• Need to be closely monitored as the expansion of consumer spending may slow down due to the progressing inflation.

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Firstly, turning to the top of the page for a domestic economic environment, with anti- pandemic measures and policies in place, economic activities are getting back to normal with a sign of recovery. With increasing tensions in international situations and soaring global commodity prices, however, we need to closely monitor how rising inflation might dampen personal consumption. Moving on to the third bullet point, loan demand showed a sign of recovery in the nonbank industry.

Next, turning to Thailand in the center, the state of emergency was lifted in October 2022. As the pandemic subsides, economy showed a sign of recovery with the expansion of personal consumption.

Turning to the Philippines at the bottom, with relaxation of restrictions on economic activities, pent-up demand emerged with strong GDP growth. The country's inflation, however, hit a 14-year high. We need to closely monitor how it will impact personal consumption.

Next, please turn to page 5 for a financial summary.

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Consolidated Financial Summary (Business Scale)

• The target is accomplished in all 3 core businesses owing to favorable trend in attracting new customers and the impact of the depreciation of yen against baht.
• Consolidated Receivables Outstanding increased by 4.9% yoy, 1.9% to ¥2,354.5 bn compared to the Estimate.

L.C.

Guarantee

Overseas

Others

yoy

Consolidated

¥2,354.5bn

Business

Business

Financial

(Billions of yen)

Business

4.9%

Receivables

-5.3%

0.4%

Outstanding

(yoy＋4.9%/compared to E +1.9%)

2,235.1

2,244.9

2,310.6

2,354.5

L.C. Business

¥914.5bn

193.7

192.7

197.1

219.4

(yoy＋5.0%/compared to E +0.7%)

1,170.0

1,173.0

1,197.9

1,212.8

Business

¥1,212.8bn

Guarantee

(yoy＋3.4%/compared to E +1.3%)

862.8

871.1

908.5

914.5

Overseas

¥219.4bn

Financial

Business

(yoy+13.8%/compared to E +11.4%)

21/3

22/3

23/3(E)

23/3

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Firstly, the total receivables on a consolidated basis, shown on the right, grew 4.9% to 2 trillion and 354.5 billion yen, beating the initial targets in all of the 3 core businesses. Two factors are behind this growth.

Firstly, the initiatives we put in place to effectively capture customers' loan demand helped new customer acquisition and greater usage among existing customers both in the loan and credit card business and guarantee business in Japan. Secondly, the weaker yen against the Thai baht boosted receivables. I will come back to these domestic initiatives later.

Looking at receivables by business, receivables in the loan and credit card business grew 5.0% to 914.5 billion yen while guaranteed receivables increased 3.4% to 1 trillion and

212.8 billion yen. Receivables of the overseas financial business grew 13.8% to 219.4 billion yen.

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