Acom : 1Q(297KB)

(Translation for reference only)

In the event of any discrepancy between this translated document

and the original Japanese document the original document shall prevail.

Brief Statement of the First Quarter Financial Results for the Fiscal Year Ending March 2024

[Japanese GAAP (Consolidated)]

July 28, 2023

Forward-looking Statement

The statements and figures contained in this Brief Statement of Financial Results for the fiscal year ending March 2024 (the "Brief Statement") 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 Brief Statement. However, there are some potential risk factors in the Group's business management. 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 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.

Name of the company:	ACOM CO., LTD. ("ACOM" or "the Company")
Stock market:	Tokyo Stock Exchange
Code Number:	8572
Location of the head office:	Tokyo
URL:	https://www.acom.co.jp/corp/english/ir/
Position of the representative:	President & Chief Executive Officer
Name:	Masataka Kinoshita
Position of the person in charge:	Chief PR & IR Officer
Name:	Takashi Okamoto
Telephone Number:	[phone]
Registration date of quarterly securities report:	August 14, 2023
Commencement date of dividend payment:	-
Quarterly material to supplement
the financial results:	Applicable
Quarterly financial results conference:	Applicable (For domestic institutional investors and financial analysts)

Note: 1. All amounts under minimum units appearing in each of the tables have been disregarded throughout this brief statement and the annexed materials.

Note: 2. The figures in percentages show the year-on-year change from previous first quarter.

1. Consolidated Business Results for the First Quarter Accounting Period (from April 1, 2023, to June 30, 2023)

1. Consolidated Business Results (Accumulated)

											Profit Attributable to
	Operating Revenue	Operating Profit	Ordinary Profit	Owners of Parent
											(First Quarter)
	(Millions of yen)		yoy%	(Millions of yen)		yoy%	(Millions of yen)		yoy%	(Millions of yen)	yoy%
1Q for FY March 2024	70,926		6.6	21,927		(13.7)	22,082	(13.0)	13,776	(17.0)
1Q for FY March 2023	66,514		1.6	25,394		1.4	25,387	1.0	16,594	(16.7)
[Note] Comprehensive income
1Q for FY March 2024: 18,931 million yen [(28.0%)]
1Q for FY March 2023: 26,312 million yen	[8.3%]
	Basic Earnings	Diluted Earnings
	per Share		per Share
	(First Quarter)	(First Quarter)
	(Yen)			(Yen)
1Q for FY March 2024	8.79				-
1Q for FY March 2023	10.59				-
(2) Consolidated Financial Position
	Total Assets				Net Assets			Ratio of
					Shareholders' Equity
	(Millions of yen)				(Millions of yen)			%
1Q for FY March 2024	1,319,562				629,463			44.7
FY March 2023 (Annual)	1,297,316				619,837			44.8
Shareholders' Equity:
1Q for FY March 2024: 589,788 million yen	FY March 2023: 581,087 million yen

2. Dividend Status

			Dividend per Share (Yen)
FY March 2023	First Quarter	Second Quarter	Third Quarter	Fourth Quarter	Annual
--	5.00	--	5.00	10.00
FY March 2024	--
FY March 2024 (Forecast)		6.00	--	6.00	12.00

Amendment to dividend forecast: None

3. Forecasts for the Fiscal Year Ending March 2024 (from April 1, 2023, to March 31, 2024)

(The figures in percentage show year-on-year change from the same prior periods.)

									Profit Attributable to	Basic
	Operating Revenue	Operating Profit		Ordinary Profit		Earnings
			Owners of Parent
									per Share
	(Millions of yen)	%	(Millions of yen)		%	(Millions of yen)		%	(Millions of yen)	%	(Yen)
First Half	140,000	3.7	45,600		(6.6)	45,700		(6.4)	29,500	(10.6)	18.83
Annual	284,300	3.8	90,400		3.6	90,600		3.6	57,900	5.4	36.96

Amendment to business results forecast: None

(Note)

1. Change in Important Subsidiaries in the Three Months ended June 30, 2023: None (Change in scope of consolidation)
2. Adoption of Accounting Methods Used Specifically for Quarterly Consolidated Financial Statements: None
3. Changes in Accounting Policy, Accounting Estimates and Restatement
4. 1. Change in accounting policy due to revision of accounting standards, etc.: None
   2. Changes other than A): None
   3. Change in accounting estimates: None
   4. Restatement: None
5. Outstanding shares (common shares)
6. 1. Number of shares outstanding (including treasury shares)

First Quarter of FY March 2024:	1,566,614,098 shares	FY March 2023:	1,566,614,098 shares
B) Number of treasury shares at the end of period
First Quarter of FY March 2024:	50 shares	FY March 2023:	50 shares
C) Number of average shares outstanding (accumulated quarterly consolidated period)
First Quarter of FY March 2024:	1,566,614,048 shares	First Quarter of FY March 2023:	1,566,614,048 shares

(Note) Brief Statement of Quarterly financial results is not subject to quarterly review procedures.

(Note) Explanation regarding proper use of the business forecast and other notes (Notes to Forward-looking Statement)

The statements about the future performance of ACOM are based on management's assumptions and beliefs in light of the information currently available to it. These statements do not guarantee our future performance: actual results may differ from those in the forward-looking statements as a result of various factors. Please refer to "(3) Qualitative Information on the Forecasts for the Consolidated Business Results" of "1. Quarterly Qualitative Information on Business Results" on page 3 for conditions which are basis of forecasts and notes for using the forecast.

(Accessing financial results materials and archive of financial results conference)

ACOM plans to hold the first quarter financial results conference (video conferencing for domestic institutional investors and financial analysts) on July 28, 2023. The materials used at the conference will be available at ACOM's website promptly after disclosure of financial results.

Contents

1. Quarterly Qualitative Information on Business Results:························································ P2
2. 1. Qualitative Information on Business Results: ······························································· P2
   2. Qualitative Information on Financial Position: ······························································· P2
   3. Qualitative Information on the Forecasts for the Consolidated Business Results: ················· P3
3. Quarterly Consolidated Financial Statements and Major Notes:············································· P4
4. 1. Quarterly Consolidated Balance Sheet: ······································································ P4
   2. Quarterly Consolidated Statement of Income and
      Quarterly Consolidated Statement of Comprehensive Income:········································· P6
   3. Notes on Quarterly Consolidated Financial Statements: ················································· P9 (Notes on Going-concern Assumption): ······································································· P9 (Notes in Case of any Significant Changes in the Amount of Shareholders' Equity): ·············· P9
5. [Reference] Quarterly Non-consolidated Financial Statements: ··········································· P10
6. 1. [Reference] Quarterly Non-consolidated Balance Sheet: ·············································· P10
   2. [Reference] Quarterly Non-consolidated Statement of Income: ······································ P11

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1. Quarterly Qualitative Information on Business Results

(1) Qualitative Information on Business Results

During the three months ended June 30, 2023, 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. However, 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. Close attention should be paid continuously to the impact of these factors on consumer spending and financial markets. Overseas, while the situation varied from country to country, economic conditions in the Kingdom of Thailand showed signs of stable progress as the economic growth rate in the first quarter was higher compared to the same period of the previous fiscal year, due to strong consumer spending. In the Republic of the Philippines, the economic growth rate is moderating against the backdrop of a slowdown in consumer spending due to rising inflation, but the economy is returning to the trend of high growth seen before the spread of COVID-19.

In the nonbank business sector in Japan, while close attention should be paid to future trends similarly to the Japanese economy, the demand for funds shows a sign of steady recovery. Although requests for interest repayment continue to be on a decreasing trend, future trends need to be closely monitored on an ongoing basis, as requests for interest repayment are susceptible to the impacts of changes in the external environment.

In such an environment, the Company Group identifies our commitment to each of our stakeholders as our vision in the medium-term management plan beginning from the fiscal year ended March 31, 2023, and has set forth a medium-term management policy of making efforts to achieve the vision during the three-year period. We will respond flexibly to the changes in the external environment, including COVID-19 infection, and continue to promote marketing activities in line with the vision and the medium-term policy.

Consolidated operating revenue for the three months ended June 30, 2023, increased to 70,926 million yen (up 6.6% year-on-year). This is mainly attributable to an increase in accounts receivable - operating loans and foreign exchange impacts on the depreciation of the yen, which led to an increase in interest on operating loans. Operating expenses increased to 48,998 million yen (up 19.2% year-on-year) primarily because provision of allowance for doubtful accounts increased associated with the expansion of business scale and advertising expenses increased associated with strengthening attracting new customers. As a result, operating profit decreased to 21,927 million yen (down 13.7% year-on-year), and ordinary profit decreased to 22,082 million yen (down 13.0% year-on-year). Profit attributable to owners of parent decreased to 13,776 million yen (down 17.0% year-on-year).

(2) Qualitative Information on Financial Position

Compared with the end of the prior fiscal year, total assets increased by 22,245 million yen and net assets increased by 9,625 million yen as of June 30, 2023. Details of changes in assets, liabilities and net assets are as follows:

(Assets)

Current assets increased by 25,451 million yen and non-current assets decreased by 3,206 million yen. Consequently, total assets increased by 22,245 million yen. The breakdown of major changes in current assets is as follows: accounts receivable - operating loans (up 24,679 million yen) and accounts receivable - installment (up 4,599 million yen). The factors of an increase in accounts receivable - operating loans include foreign exchange impacts. The increases in accounts receivable - operating loans and accounts receivable - installment led to an increase of 2,152 million yen in allowance for doubtful accounts. The breakdown of major decreases in non-current assets includes deferred tax assets (down 3,682 million yen).

(Liabilities)

With regard to the liabilities account, changes in current and non-current liabilities were an increase of 20,299 million yen and a decrease of 7,679 million yen, respectively, resulting in an increase of 12,620 million yen in total liabilities. The breakdown of major changes in liabilities includes the outstanding balance of funds procured mainly in the form of loans and bonds payable (up 22,619 million yen) and provision for loss on interest repayment (down 7,090 million yen).

(Net assets)

In terms of net assets, shareholders' equity increased by 5,942 million yen due to an increase in retained earnings. The breakdown of major changes in retained earnings includes an increase due to the recording of profit attributable to owners of parent (13,776 million yen) and a decrease due to the payment of dividends (7,833 million yen). Moreover, accumulated other comprehensive income increased by 2,758 million yen due in part to an increase in foreign currency translation adjustment, and non-controlling interests increased by 924 million yen. As a result, total net assets increased by 9,625 million yen, and the shareholders' equity ratio decreased by 0.1 percentage points to 44.7%.

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