Acom : Brief Statement of the First Quarter Financial Results for the Fiscal Year Ending March 2022

(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 2022

[Japanese GAAP (Consolidated)]

July 29, 2021

Forward-looking Statement

The statements and figures contained in this Brief Statement of the First Quarter Financial Results for the fiscal year ending March 2022 (the "Brief Statement") with respect to ACOM CO., LTD. ("ACOM")'s plans and strategies and other statements that are not historical facts are forward-looking statements about the future performance of ACOM which are based on management's assumptions and beliefs in light of the information currently available to it and involve risks and uncertainties. Actual results may differ from those in the forward-looking statements as a result of various factors. Potential risks and uncertainties include, but not limited to, general economic conditions in ACOM's market and changes in the size of the overall market for consumer loans, the rate of default by customers, the fluctuations in number of cases of claims from and the amount paid to customers who claim us to reimburse the portion of interest in excess of the interest ceiling as specified in the Interest Rate Restriction Act, the level of interest rates paid on ACOM's debt, and legal limits on interest rates charged by ACOM.

Name of the company:	ACOM CO., LTD. ("ACOM" or "the Company")
Stock market:	First Section of 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 13, 2021
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, 2021, to June 30, 2021)

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 2022

65,467

-3.0

25,055

-2.9

25,145

-3.0

19,921

-7.8

1Q for FY March 2021

67,474

-3.2

25,796

3.4

25,926

7.0

21,611

-19.0

[Note] Comprehensive income

1Q for FY March 2022: 24,302 million yen

[57.4%]

1Q for FY March 2021: 15,436 million yen [-51.2%]

Basic Earnings

Diluted Earnings

per Share

per Share

(First Quarter)

(First Quarter)

(Yen)

(Yen)

1Q for FY March 2022

12.72

-

1Q for FY March 2021

13.80

-

(2) Consolidated Financial Position

Total Assets

Net Assets

Ratio of

Shareholders' Equity

(Millions of yen)

(Millions of yen)

%

1Q for FY March 2022

1,211,850

533,292

41.5

FY March 2021 (Annual)

1,219,109

515,128

39.8

Shareholders' Equity:

1Q for FY March 2022: 503,110 million yen

FY March 2021: 485,684 million yen

2. Dividend Status

			Dividend per Share (Yen)
FY March 2021	First Quarter	Second Quarter	Third Quarter	Fourth Quarter	Annual
--	3.00	--	3.00	6.00
FY March 2022	--
FY March 2022 (Forecast)		3.00	--	3.00	6.00

Amendment to dividend forecast: None

3. Forecasts for the Fiscal Year Ending March 2022 (from April 1, 2021, to March 31, 2022)

(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	129,700	-3.9	39,900	-26.8	40,000	-27.8	30,800	-29.2	19.66
Annual	260,700	-2.1	79,900	-19.2	80,100	-19.9	61,000	-22.7	38.94

Amendment to business results forecast: None

(Note)

1. Change in Important Subsidiaries in the Three Months ended June 30, 2021: 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 2022:	1,566,614,098 shares	FY March 2021:	1,596,282,800 shares
B) Number of treasury shares at the end of period
First Quarter of FY March 2022:	-- shares	FY March 2021:	29,668,702 shares
C) Number of average shares outstanding (accumulated quarterly consolidated period)
First Quarter of FY March 2022:	1,566,614,098 shares	First Quarter of FY March 2021:	1,566,614,160 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 29, 2021. 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, 2021, the Japanese economy remained, as in the prior fiscal year, under preventive measures against COVID-19 infection in order to sustain social and economic activities, with a state of emergency and priority measures to prevent the spread of disease declared in some municipalities, and the situation remained uncertain with the ongoing possibility of a re-spread of the infection. Meanwhile, overseas economy remained harshly restrained due in part to the impact of limitations in activities, though situations differ from country to country.

In the nonbank business sector, the outlook remained uncertain as the market is contracting as a result of the prolonged stagnation of consumer spending due to the impact of the spread of COVID-19 infection. Although requests for interest repayment have steadily decreased, 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 will continue its operating activities while paying due attention to the safety of customers and employees, and will provide flexible and courteous support for repayment, etc.

The Company Group has upheld its management vision of "strive to become the leading company in personal loan market which provides prime satisfaction to the utmost number of customers and win their trust in return." Amid the spread of COVID-19 infection and other changes in the external environment, the Company Group will continue to make concerted efforts under a medium-term management policy of "with expeditious reactions to environmental changes, ACOM will strive for sustainable growth and increasing corporate value, while creating services which exceed customers' expectations."

Consolidated operating revenue for the three months ended June 30, 2021, decreased to 65,467 million yen (down 3.0% year-on-year). This is attributable to: the decreases in accounts receivable-operating loans and guaranteed receivables due to the spread of COVID-19 infection which led to decreases in interest on operating loans and revenue from credit guarantee. Operating expenses, on the other hand, decreased to 40,411 million yen (down 3.0% year-on-year) mainly due to a decrease in provision of allowance for doubtful accounts. As a result, operating profit decreased to 25,055 million yen (down 2.9% year-on-year), ordinary profit decreased to 25,145 million yen (down 3.0% year-on-year), and profit attributable to owners of parent decreased to 19,921 million yen (down 7.8% year-on-year).

(2) Qualitative Information on Financial Position

Compared with the end of the prior fiscal year, total assets decreased by 7,259 million yen, whereas net assets increased by 18,164 million yen as of June 30, 2021. Details of changes in assets, liabilities and net assets are as follows:

(Assets)

Current assets decreased by 4,781 million yen and non-current assets decreased by 2,478 million yen. Consequently, total assets decreased by 7,259 million yen. The breakdown of major changes in current assets is as follows: cash and deposits (down 12,970 million yen), accounts receivable - operating loans (up 4,095 million yen) and accounts receivable - installment (up 2,012 million yen). The breakdown of major decreases in non-current assets is as follows: deferred tax assets (down 1,941 million yen). The combined total of allowance for doubtful accounts recorded under current assets and non-current assets decreased by 1,935 million yen.

(Liabilities)

With regard to the liabilities account, changes in current and non-current liabilities were an increase of 8,782 million yen and a decrease of 34,206 million yen, respectively, resulting in a decrease of 25,424 million yen in total liabilities. The breakdown of major decreases in liabilities includes: the outstanding balance of funds procured mainly in the form of loans and bonds payable (down 13,842 million yen) and provision for loss on interest repayment (down 7,034 million yen).

(Net assets)

In terms of net assets, shareholders' equity increased by 15,221 million yen mainly due to recording profit attributable to owners of parent under retained earnings, accumulated other comprehensive income increased by 2,204 million yen due in part to an increase in foreign currency translation adjustment, and non-controlling interests increased by 737 million yen. As a result, total net assets increased by 18,164 million yen, and the shareholders' equity ratio increased by 1.7 percentage points to 41.5%.

Capital surplus and retained earnings decreased due to the cancellation of treasury shares conducted during the three months ended June 30, 2021. Detail is stated at "(3) Notes on Quarterly Consolidated Financial Statements" of "2. Quarterly Consolidated Financial Statements and Major Notes".

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