Corporate Philosophy
Earn the trust of society through corporate activity based in integrity
We defined our vision, mission, and value for embodying our corporate philosophy.
The AIFUL Group has upheld the corporate philosophy: "Earn the trust of society through corporate activity based in integrity" as an unalterable underlying philosophy, and in April 2021, we defined our vision, mission, and value as concrete goals suited for the present age for redeveloping the system of our philosophy.
V I S I O N MISSION VALUE
VISION
For realizing a society in which your traits will shine
Your originality in your daily life and work. AIFUL hopes to brighten our society further with the characteristics of individuals. So that all kinds of people can envision a future in which they will be able to be themselves, we value individuality.
MISSION
Unification and utilization of our group brands
●In July 2022, the names of domestic group companies, excluding some companies, were renamed to include "AG" in their new names.
●We aim to improve the performance of the entire corporate group, by enhancing a sense of unity as a corporate group and taking full advantage of the popularity of AIFUL.
Toward customers
Let's go beyond the expectations of customers
Go beyond
Requirements
- To understand customers
- To think from the viewpoint of customers
- To give a proposal while foreseeing future trends
We always think from the viewpoint of customers and keep exceeding the expectations of customers with our swift services while devoting the utmost effort.
Toward society
Let's create a better tomorrow
Step forward
Requirements
- To create a happy tomorrow for everyone
- To continue our efforts to improve things
By improving things on a daily basis, we will contribute to the happy tomorrow of many people.
Toward our staff
We respect the characteristics of each other
Be unique
Requirements
- To exert one's individuality
- To recognize each other
While respecting the characteristics of each other, we will keep creating a variety of values.
Contents
VALUE | ||||
Sincerity | Trust | |||
Be honest | Build relationship | |||
We will not betray our fellows or | What matters most is to trust the | |||
go against our rules | other person | |||
Effort | Gratefulness | |||
Try harder | Be grateful | |||
What matters is to exert all one's | What matters is to appreciate and | |||
strength | respect all stakeholders |
Year-on-Year Summary …………………… 2 | Our ESG Activities ………………………… 22 | Financial Report by the Management Team…… 46 |
Our History …………………………………… 4 | Corporate Governance …………………… 30 | Financial Statements…………………… 60 |
To Our Investors and Shareholders ……… 6 | Financial Report…………………………… 37 | Group Companies…………………………110 |
Initiatives for Creating Corporate Value …… 10 | Six-Year Summary ……………………… 38 | Corporate Overview/Stock Information …111 |
AIFUL Group Business Overview ……… 12 | Business Data ………………………… 40 |
Forward-Looking Statements
The figures contained in this Annual Report with respect to AIFUL's plans and strategies and other statements that are not historical facts are forward-looking statements about the future performance of AIFUL, which are based on management's assumptions and beliefs in light of the information currently available to it and involve risks and uncertainties and actual results may differ from those in the forward-looking statements as a result of various factors.
Potential risks and uncertainties include, without limitation, general economic conditions in AIFUL's market and changes in the overall market for consumer loans, the rate of default by customers, and the level of interest rates charged by AIFUL.
1
Year-on-Year Summary
Financial Highlight
Operating revenue (millions of yen)
Fiscal 2020 | Fiscal 2021 | Interest on operating loans | 76.3 billion yen | ||||
¥ Revenue from installment sales | 20.0 billion yen | ||||||
127,481 | 132,097 | ||||||
Revenue from credit guarantee | 15.7 billion yen | ||||||
Ordinary profit (millions of yen) | |||||||
Fiscal 2020 | Fiscal 2021 | ||||||
19,305 | 12,265 | ||||||
Profit attributable to owners of parent (millions of yen)
Fiscal 2020 | Fiscal 2021 | ||||||
18,437 | 12,334 | ||||||
Financial Indicators(%) | |||||||
Fiscal 2020 | Fiscal 2021 | ||||||
ROA | 2.2 | 1.4 | |||||
ROE | 13.6 | 8.2 | |||||
16.9 | 16.4 | ||||||
Capital adequacy ratio | |||||||
External ratings(JCR、R&I) | |||||||
Fiscal 2020 | Fiscal 2021 | ||||||
JCR | BB+ | JCR | BBB | ||||
R&I | BB | R&I | BBB- |
2 AIFUL CORPORATION Annual Report 2022
Non-Financial Highlight
Total greenhouse gas emissions (t-CO2)
Fiscal 2020 | Fiscal 2021 |
4,205 | 3,996 eco |
Education/training cost per person*1 (yen)
Fiscal 2020 | Fiscal 2021 |
26,189 | 31,644 |
Ratio of employees who have taken paid holidays (%)
Fiscal 2020 | Fiscal 2021 |
75.78 | 73.44 |
Number of male employees who have taken childcare leave(person)
Fiscal 2020 | Fiscal 2021 |
4 | 9 |
Number of non-Japanese employees
(including those recruited outside Japan) (person)
Fiscal 2020 | Fiscal 2021 |
944 | 892 |
*1 The number of employees is calculated by dividing the sum of the number of regular employees at the beginning of a term and the number of regular employees at the end of the term by 2.
Energy consumption (compared to previous year()%)
Fiscal 2020 | Fiscal 2021 |
63.6 | 92.7 eco |
Average number of paid holidays taken (days)
Fiscal 2020 | Fiscal 2021 |
13.0 | 13.0 |
Number of employees who have taken childcare leave (person)
Fiscal 2020 | Fiscal 2021 |
72 | 71 |
Expenditure for social contribution (donations, etc. in fiscal 2021)
Fiscal 2020 | Fiscal 2021 |
1,473 | 1,192 |
Ratio of (locally recruited) non-Japanese managers outside Japan(%)
Fiscal 2020 | Fiscal 2021 |
8.3 | 8.4 |
AIFUL CORPORATION Annual Report 2022 3
Our History
1967
Yoshitaka Fukuda, AIFUL CORPORATION's current chairman, establishes a sole proprietorship as a consumer finance company
1978
Established Marutaka, Inc. (now AIFUL CORPORATION) and began business with three branches in Kyusyu and one in Kyoto
1982
Marutaka, Inc. absorbs three related companies
Name simultaneously changed to AIFUL CORPORATION
1984
Start of ATM operations
1985
Introduced first Scoring System (automated credit check system)
1994
Opened Heartful Center (now Contact Center)
1995
Completed installation of "Ojidousan", an automated loan agreement machine, at Kanda north exit branch and Ikebukuro west exit branch
1997
Over-the-counter registration of company's stock with the Japan Securities Dealers Association
2000
2002
Established Compliance Committee
2003
Received "Listed Company Disclosure Commendation" from the Tokyo Stock Exchange
2004
Converted KOKUSAI Capital Co., Ltd. into 100% subsidiary
KOKUSAI Capital Corporation changed its name to New Frontier Partners Co., Ltd.
2007
Revised management philosophy. The new management philosophy is "Earn the trust of society through corporate activity based in integrity"
2009
Transferred all shares of 4 consolidated subsidiaries to NEOLINE CAPITAL Co., Ltd.
2010
LIFE Co., Ltd. established a wholly owned subsidiary for the credit card business and credit guarantee business, called Life Card Co., Ltd.
2011
Under the group reorganization, credit sales business as well as the
2013
New Frontier Partners Co., Ltd. (a consolidated subsidiary) acquired all shares in BUSINEXT CORPORATION owned by the Company and Sumitomo Mitsui Trust Bank Limited and made it a wholly-owned subsidiary
2014
LIFE GUARANTEE CO., LTD. (now AIFUL GUARANTEE CO., LTD.) commenced installment sales and credit guarantee business.
AIRA & AIFUL Public Company Limited, a joint venture, was established with AIRA Capital, as an overseas subsidiary in Thailand
2015
AIRA & AIFUL Public Company Limited commenced the consumer finance business in Thailand with the A Money brand
Shares of Anshin Guarantor Service Co., Ltd., a group company, were listed on the Tokyo Stock Exchange Mothers
2016
New Frontier Partners Co., Ltd. changed its corporate name to AG Capital Corporation
2017
The 50th anniversary of AIFUL's establishment
2018
Established AsTry Partners Corporation (now AIFUL Partners Corporation), which manages the corporate turnaround & restructuring business
2020
Established AG Miraibarai Co., Ltd., which manages the Postpay settlement business
Established Aiful Medical Finance Co., Ltd., which manages the business of medical fee-type secured loans
AIFUL Group companies below have been renamed as follows:
BUSINEXT CORPORATION to AIFUL BUSINESS FINANCE CORPORATION; AsTry Loan Services Corporation to AG Loan Services Corporation; and LIFE GUARANTEE CO., LTD. to AIFUL GUARANTEE CO., LTD.
2021
Aiful Medical Finance Corporation changed its name to AG Medical Corporation
2022
Established AG Smile Leaseback Corporation, which manages leaseback business.
Changed the listing market to the Prime Market
Listed on First Section, Tokyo Stock Exchange and First Section,
Osaka Securities Exchange
2001
Established business finance company Businext Co., Ltd. (now AIFUL BUSINESS FINANCE Corporation) through a joint venture with Sumitomo Trust and Banking Co., Ltd.
Transferred the head office to Shimogyo-ku, Kyoto (current location)
Converted LIFE Co., Ltd., into 100% subsidiary
Established servicer company AsTry Loan Services Corporation (now AG Loan Services Corporation) in joint venture with Aozora Bank, Ltd.
Conversion ofLIFE Co., Ltd. |
into 100% subsidiary |
Establishment of BUSINEXT |
Listing on First Section, Tokyo Stock Exchange |
Opening of Heartful Center |
Establishment of a consumer |
finance company |
credit guarantee and insurance businesses of LIFE Co., Ltd. was transferred to LIFE CARD Co., Ltd. by way of corporate spinoff and merger
Furthermore, four consolidated subsidiaries including LIFE Co., Ltd. (following its spin-off) were merged into AIFUL
Changedthe listing market tothe Prime Market
Establishment of AG Medical Corporation
Establishment of AG Miraibarai Co., Ltd. |
Establishment of AsTry Partners Corporation |
50th anniversary of AIFUL's |
establishment |
Entryinto overseas markets
LIFE GUARANTEE CO., LTD. |
started operation |
4 | AIFUL CORPORATION Annual Report 2022 | AIFUL CORPORATION Annual Report 2022 | 5 | ||
To Our Investors and Shareholders
To Our Investors and Shareholders
Introduction
There are concerns about an economic slowdown due to price increases because of soaring energy and raw material prices against a backdrop of a weakening yen and the worsening situation in Ukraine. On the other hand, COVID-19 vaccinations are spreading throughout society. This is leading to a normalization of social and economic activities. The trend for recovery is continuing in the consumer finance industry. For example, the number of new contracts concluded by major companies increased compared to the previous year. Nevertheless, interest repayment claims are susceptible to changes in the external environment. Therefore, we need to continue to be vigilant.
The AIFUL Group's consolidated results for fiscal 2021 are as follows: operating revenue was 132 billion yen (up 3.6% year-on-year), operating profit was 11.2 billion yen (down 35.9% year-on-year), ordinary profit was 12.2 billion yen (down 36.5% year-on-year) and profit attributable to
Summary of financial results for fiscal 2021
owners of parent was 12.3 billion yen (down 33.1% year-on-year). The main reason for the increase in revenue and the decrease in profit was that we recorded a 19.9 billion yen in provision for loss on interest repayment, so operating expenses increased by 10.9 billion yen to 120.8 billion yen (up 9.9% year-on-year). The environment surrounding the AIFUL Group is changing at bewildering pace. For instance, there are new entrants to the market from different industries, changes in lifestyles due to the spread of COVID-19 and the acceleration in the pace of digital transformation. Accordingly, we need to respond to changes swiftly. We will build a high-income structure by reforming to a company that obtains strong support from our stakeholders and by working to improve productivity and reform our income structure through IT and digital utilization. We will do this by establishing the AIFUL Group brand and increasing the sophistication of data utilization to respond to the changing environment.
Two-yearmid-term management plan
In June 2022, we formulated a two-yearmid-term management plan to end in fiscal 2023 to indicate even more concretely the growth potential of our group.
●Consolidated balance of operating receivables (on an operating receivable basis)
Unit: Billions of yen | Fiscal 2021 | Fiscal 2022 | Fiscal 2023 | |
(results) | (est.) | (est.) | ||
Total operating receivables | 887.4 | 995.3 | 1,120.0 | |
Operating loan balance | 582.3 | 635.9 | 697.0 | |
Installment receivables | 116.7 | 143.3 | 163.0 | |
balance | ||||
Customers' liabilities for | 172.6 | 203.6 | 244.0 | |
acceptances and guarantees | ||||
●Major consolidated profit figures (accounting base)
Unit: Billions of yen | Fiscal 2021 | Fiscal 2022 | Fiscal 2023 | |
(results) | (est.) | (est.) | ||
Operating revenue | 132.0 | 142.6 | 157.0 | |
Interest on operating | 76.3 | 82.7 | 91.0 | |
loans | ||||
Revenue from | 18.8 | 19.6 | 21.0 | |
installment sales | ||||
Revenue from | 15.7 | 16.7 | 18.0 | |
credit guarantee | ||||
Operating profit | 11.2 | 23.8 | 28.0 | |
Ordinary profit | 12.2 | 24.0 | 28.0 | |
ROA(%) | 1.4 | 2.4 | 2.4 | |
ROE(%) | 8.2 | 13.0 | 12.4 | |
Total operating assets | up 8.7% | Operating revenue | Operating profit | |||||||||
year on year | ||||||||||||
887.4 | up 3.6% | down 35.9% | ||||||||||
bn | year on year | year on year | ||||||||||
132.0bn | 11.2bn | |||||||||||
582.3bn | ||||||||||||
Loan business | up 5.2% | |||||||||||
year on year | ||||||||||||
Credit business | up 7.4% | ||||||
116.7 | |||||||
year on year | Ordinary profit | Profit attributable to | |||||
bn | owners of parent | ||||||
down 36.5% | down 33.1% | ||||||
year on year | year on year | ||||||
12.2bn | 12.3bn | ||||||
Credit guarantee business | up18.9% | ||||||
171.7bn | |||||||
year on year | |||||||
Indicators of Reliability/Profitability/Growth Potential in AIFUL Group
Growth potential | |||||||
Safety | 2022/3 | ||||||
20% | Operating assets | ||||||
16.4% | |||||||
Shareholders' | more than 10% | ||||||
Equity Ratio | growth per annum | ||||||
(Billions of yen) | |||||||
Profitability | 10,00 | 820.4 | 816.5 | 887.4 | |||
ROE | ROA | 600 | 735.2 | ||||
800 | 665.6 | ||||||
more than | more than | 400 | |||||
10% | 2% | 200 | |||||
0 | 2018/3 | 2019/3 | 2020/3 2021/3 2022/3 | ||||
8.2% 2022/3 | 1.4% 2022/3 | ||||||
6 | AIFUL CORPORATION Annual Report 2022 | AIFUL CORPORATION Annual Report 2022 | 7 | ||
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aiful Corporation published this content on 05 October 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 05 October 2022 07:21:03 UTC.