FY March 2024: 1Q Speech Script and Q&A(511KB)

Earnings Release Presentation

The First Quarter Financial Results for the Fiscal Year Ending March 2024

July 28, 2023

This is Okamoto from the PR & IR Office of ACOM CO., LTD. Thank you very much for taking time today.

First, I will explain the business environment, so please turn to page 3 of the presentation materials.

1

∎ 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]

2

2

Business Environment

Japan

Thailand

Philippines

• Japanese socio-economic activities are returning to normal, resulting in economic conditions showing signs of gradual recovery.
• 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.
• In the nonbank business sector, the demand for funds shows a sign of steady recovery.
• Economic conditions showed signs of stable progress as the economic growth rate in 1Q was higher compared to the previous fiscal year, due to strong consumer spending.
• Future trends need to be closely monitored on an ongoing basis as political unrest associated with the change of government remains.
• GDP growth remained high as deregulating economic activity has been sufficiently progressed.
• The economy is returning to the trend of high growth seen before the spread of COVID-19.

3

First, upper row, regarding the business environment in Japan, the economy continues to recover moderately as socioeconomic activities normalize, backed by the shift of new coronavirus infections to category five and various policies.

However, there are risks that could depress the economy, such as rising prices due to tensions in international affairs and soaring global resource prices, as well as concerns about increasing financial instability due to prolonged global monetary tightening.

In the third bullet, non-banking industries also saw a pickup in demand for funds.

In the Kingdom of Thailand in the middle section, the economy remained stable, with strong consumer spending leading to higher economic growth in Q1 than in the previous quarter. However, there is also political uncertainty associated with the change of government, and trends need to be closely monitored.

In the Republic of the Philippines, which can be seen at the lower table, GDP growth has been maintained at a high level due to the easing of restrictions on economic activities, and has returned to the trend of high growth prior to the spread of COVID-19.

Please see page 4 for a summary of the financial results.

3

Consolidated Financial Summary (Business Scale)

• Consolidated Receivables Outstanding increased by 5.3% yoy to ¥2,397.9 biliion owing to favorable trend in borrowings by new and existing customers in domestic business and the impact of the depreciation of yen against baht.

		L.C.		Guarantee		Overseas				(Billions of yen)
		Business		Business		Financial Business		Others		yoy	Consolidated	¥2,397.9bn
	0.4%	4.9%	4.1%				1.8%	5.3%		Receivables
														Outstanding	(yoy＋5.3%)
	2,244.9	2,354.5	2,450.3			2,276.6	2,397.9			¥937.3bn
	219.4			219.6				225.9		L.C. Business
	192.7					207.3
																	(yoy＋6.5%)
	1,173.0	1,212.8		1,268.8				1,181.4	1,226.8			¥1,226.8bn
								Business
																Guarantee
																Overseas	(yoy＋3.8%)
							954.6						937.3
	871.1	914.5					879.9		¥225.9bn
																Financial
																Business	(yoy+9.0%)
	22/3	23/3		24/3(E)	22/6	23/6

4

First, on the right side, the overall consolidated receivables outstanding increased 5.3% YoY to 2,397.9 billion yen. There are two main causes.

The first was that new and additional uses were strong as demand for funds for leisure, travel, and other activities increased against the background of the shift of new coronavirus infections to category five and various policies. The second is that the balance was boosted by the foreign exchange impact of the weaker yen and stronger baht.

Looking at the receivables outstanding by business segment, the loan and credit card business increased 6.5% YoY to 937.3 billion yen. Guarantee business increased 3.8% to 1,226.8 billion yen. Overseas financial business increased by 9% to 225.9 billion yen.

Please refer to page 5.

4

Consolidated Financial Summary (Business Performance) (Millions of yen、%)

		2022/6	2023/6	2024/3	Progress
		Results	Results	yoy	Forecast	yoy
1	Operating Revenue	66,514	70,926	6.6	284,300	3.8	24.9
2	Loan and Credit Card Business	36,035	37,750	4.8	151,800	4.6	24.9
3	Guarantee Business	15,956	16,976	6.4	70,200	5.9	24.2
4	Overseas Financial Business	13,006	14,689	12.9	56,900	0.6	25.8
5	Operating Expenses	41,120	48,998	19.2	193,900	4.0	25.3
6	Financial Expenses	1,025	1,036	1.2	4,700	17.1	22.1
7	Provision for Bad Debts	16,655	22,711	36.4	84,600	5.1	26.8
8	Provision for Loss on Interest Repayment	-	-	-	-	-	-
9	Other Operating Expenses	23,439	25,250	7.7	104,600	2.6	24.1
10	Operating Profit	25,394	21,927	-13.7	90,400	3.6	24.3
11	Ordinary Profit	25,387	22,082	-13.0	90,600	3.6	24.4
12	Profit Before Income Taxes	25,340	22,038	-13.0	90,400	6.6	24.4
13	Profit	18,042	15,050	-16.6	62,400	4.9	24.1
14	Profit Attributable to Owners of Parent	16,594	13,776	-17.0	57,900	5.4	23.8

5

Next, I will explain the business performance.

Initially, consolidated operating revenues increased 6.6% YoY to 70.9 billion yen.

By business segment, the loan and credit card business increased 4.8% YoY to 37.7 billion yen, mainly owing to business expansion. Guarantee business increased 6.4% to

16.9 billion yen owing to business expansion and periodic revision of guarantee fee rates. Overseas financial business increased 12.9% to 14.6 billion yen owing to business expansion and the impact of yen depreciation.

Consolidated operating expenses increased 19.2% YoY to 48.9 billion yen.

By expense, financial expenses increased 1.2% YoY to 1 billion yen. Provision for bad debts increased 36.4% to 22.7 billion yen. Other operating expenses increased 7.7% to 25.2 billion yen, mainly due to an increase in advertising expenses for ACOM.

As a result, operating income decreased by 13.7% YoY to 21.9 billion yen. Profit attributable to owners of parent decreased 17.0% to 13.7 billion yen.

Please turn to page 6 for an overview of the loan and credit card business.

5