Acom : Revision of Business and Dividend Forecasts for the Fiscal Year Ended March 2022

April 20, 2022

Revision of Business and Dividend Forecasts for the Fiscal Year Ended March 2022

Based on its recent business performance, ACOM CO., LTD. ("ACOM") announces to revise its earnings and year-end dividend forecasts for the Fiscal Year ended March 2022 (From April 1, 2021 to March 31, 2022), previously released on May 13, 2021.

1. Revision of the Earnings Forecasts for the Fiscal Year Ended March 2022

(From April 1, 2021 to March 31, 2022)

(1) Consolidated

(Millions of yen, %)

Operating Revenue	Operating Profit	Ordinary Profit	Profit Attributable to Owners of Parent	Basic Earnings per Share (yen)
Previous Forecast (A)	260,700	79,900	80,100	61,000	38.94
Revised Forecast (B)	262,100	34,800	35,400	55,700	35.55
Difference (B - A)	1,400	-45,100	-44,700	-5,300
Percentage Change (%)	0.5	-56.4	-55.8	-8.7
(Reference) FY March 2021 Results	266,316	98,896	100,014	78,864	50.34

(2) Non-consolidated

(Millions of yen, %)

Operating Revenue	Operating Profit	Ordinary Profit	Profit	Basic Earnings per Share (yen)
Previous Forecast (A)	193,800	58,800	64,800	55,400	35.36
Revised Forecast (B)	194,600	11,600	17,900	48,100	30.70
Difference (B - A)	800	-47,200	-46,900	-7,300
Percentage Change (%)	0.4	-80.3	-72.4	-13.2
(Reference) FY March 2021 Results	197,986	73,938	81,254	70,915	45.27

2. Reasons for the Revision

(1) Consolidated Earnings Forecast

ACOM revises its forecast on operating revenue to 262.1 billion yen (1.4 billion yen above the previous forecast) as revenue on credit card business landed above what we have planned. With respect to operating expenses, although provision for a bad debt and other operating expenses were within our plan, it is expected to be 227.3 billion yen (46.5 billion yen above the previous forecast) due to an unscheduled addition of 58.9 billion yen (7.6 billion yen in 3Q and 51.2 billion yen in 4Q) to provision for loss on interest repayment.

Regarding the request for interest repayment, we have added the shortfall for required allowance for loss on interest repayments (86.2 billion yen), as a result of recalculation of amounts of requests for interest repayment, taking into account the situation where the numbers of requests for FY Ended March 2022 has exceeded the forecast and the current trend of interest repayment.

Owing to factors mentioned above, operating profit and ordinary profit are expected to be 34.8 billion yen (down by 45.1 billion yen from the previous forecast) and 35.4 billion yen (down by 44.7 billion yen from the previous forecast), respectively.

On the other hand, in accordance with the "Implementation Guidance on Recoverability of Deferred Tax Assets," we carefully examined the recoverability of deferred tax assets, taking into consideration of the outlook for the fiscal year ended March 2022 and future business performance.

As a result, we expect the profit attributable to owners of parent to be 55.7 billion yen (down by 5.3 billion yen from the previous forecast), affected from additional recognition of deferred tax assets which pushed income taxes-deferred to -44.3 billion yen, ending up the profit to increase.

(2) Non-consolidated Earnings Forecast

ACOM revises its forecast on operating revenue to 194.6 billion yen (0.8 billion yen above the previous forecast) as revenue on credit card business landed above what we have planned. With respect to operating expenses, although financial expenses, provision for a bad debt and other operating expenses were within our plan, it is expected to be 183.0 billion yen (48.0 billion yen above the previous forecast) due to an unscheduled addition of 58.9 billion yen (7.6 billion yen in 3Q and 51.2 billion yen in 4Q) to provision for loss on interest repayment.

Regarding the request for interest repayment, we have added the shortfall for required allowance for loss on interest repayments (86.2 billion yen), as a result of recalculation of amounts of requests for interest repayment, taking into account the situation where the numbers of requests for FY Ended March 2022 has exceeded the forecast and the current trend of interest repayment.

Owing to factors mentioned above, operating profit and ordinary profit are expected to be 11.6 billion yen (down by 47.2 billion yen from the previous forecast) and 17.9 billion yen (down by 46.9 billion yen from the previous forecast), respectively.

On the other hand, in accordance with the "Implementation Guidance on Recoverability of Deferred

Tax Assets," we carefully examined the recoverability of deferred tax assets, taking into consideration of the outlook for the fiscal year ended March 2022 and future business performance.

As a result, we expect the profit to be 48.1 billion yen (down by 7.3 billion yen from the previous forecast), affected from additional recognition of deferred tax assets which pushed income taxes-deferred to -44.7 billion yen, ending the profit to increase.

3. Revision of Year-end Dividend Forecast for the Fiscal Year Ended March 2022 (1) Details of the Revision

Annual Dividend per Share (Yen)
Second Quarter	Year-end	Total
Previous Forecast	3.00	6.00
Revised Forecast	4.00	7.00
FY March 2022 Results	3.00
FY March 2021 Results	3.00	3.00	6.00

(2) Reasons for the Revision

Placing the profit distribution to our shareholders as one of the most important management issues, our basic policy is to "aim to enhance shareholder returns by providing stable and continuous returns of profits, taking into consideration of our business performance, equity, and the business environment surrounding our company."

As for year-end dividend forecasts for the FY ended March 2022, we plan to revise and increase the dividend to 4 yen per share (up 1yen from the previous forecast), after comprehensively taking into account the current financial situation and the full-year business performance excluding interest repayment expenses.

* The forecasts are based on information available as of the date of publication of this document, and final results may differ from the forecasts due to various factors in the future.