Premium : Financial Results Presentation for Q1 of FY Ending March 31, 2021

Financial Results Presentation

for Q1 of FY Ending March 31, 2021

August 14, 2020

TSE First Section: 7199

Premium Group Co., Ltd.

Contents

1. Summary of Financial Results for Q1 of FY Ending March 31, 2021
2. Impacts from the COVID-19 Pandemic
3. Earnings Forecast for FY Ending March 31, 2021
4. Appendix

2

1. Summary of Financial Results for Q1 of FY Ending March 31, 2021

Highlights from Q1 of FY Ending March 31, 2021

• Operating income increasing steadily driven by strength of stock-business model, which continuously increases profits
• Total volume of main businesses declined YoY due to the impacts of COVID-19

• Operating income: ¥4,022 million (up 27.7% YoY)
  Both credit finance business and automobile warranty business, both stock businesses, were minimally impacted by COVID-19 in terms of earnings

Performance

• Future revenue (deferred income) ¥2,716 million stocked on B/S (up 20.5% YoY) Credit finance business: ¥2,253 million and automobile warranty and other businesses: ¥463 million
• Market slowed considerably on people staying at home (See details in later page)

KPIs	Credit finance business: total volume of new loans -10.8% YoY
	Automobile warranty business: Total volume of new warranties -10.5% YoY

Topics		◼ Booked gain on bargain purchase of ¥590 million following acquisition of Central
	Servicer Corporation in April 2020

4

Consolidated Performance for Q1 of FY Ending March 31, 2021

(Graph/table unit: millions of yen)

• Operating income totaled ¥4,022 million (up 27.7% YoY) on reversal of stock from business growth
• Profit before tax of core business excluding one-off factors totaled ¥601 million (up 12.1% YoY)

	FY21	FY20	YoY change
	Q1	Q1
Operating	4,022	3,149	+27.7%
income
Other income	613	2,065	-70.3%
Operating	3,484	2,784	+25.2%
expenses
Profit before tax	1,179	2,364	-50.1%
Profit	783	1,546	-49.3%
attributable to
owners of parent
Basic earnings	61.46	117.09	-47.5%
per share (yen)

Operating income

Up 27.7% YoY

	4,022
3,149
FY20 Q1	FY21 Q1

Profit before tax*

Down 50.1% YoY

*Includes one-off profits (see page 6 for details)

2,364

1,828

	1,179
		578
536	601
FY20 Q1	FY21 Q1	5

About Profit before Tax of Core Business

(Graph unit: millions of yen)

• Booked one-off profits of ¥1,828 million in the previous fiscal year and ¥578 million yen this fiscal year
• Profit before tax of core business was up 12.1% YoY to ¥601 million, following ¥536 million in previous fiscal year

				Profit before tax
	Q1 FY20: Breakdown of ¥1,828						Q1 FY21: Breakdown of ¥578 million
		2,364
	million of one-off profit/loss					of one-off profit/loss
			YoY change

+12.1%

Changes in

1,828

accounting			1,179
estimates
2,032				Gain on
				bargain
		Loss on	578	purchase
Gain on	Upfront	change in ECL	594
equity from
valuation of	investment	previous fiscal
derivatives	costs	years		Gain on valuation
5	-123	-87	601	of derivatives	Donation of	Head office
		536	36	-30	-22
				masks, etc.	relocation costs
		FY20 Q1	FY21 Q1			6

Credit Finance Business: Total Volume of New Loans

Total volume of new loans

Total volume of new loans:

Auto loan PH

Auto loan PH…The average monthly (Billions of yen) total volume of new loans per sales

staff

Q1 total volume of new loans

Q1 auto loan PH

40.7

¥36.4 billion

31.4

0.170

¥0.143

0.138billion

-10.8% YoY

Auto loan PH:

-16.0% YoY

Factors driving change

• Loan volume declined due to the slowdown in the number of new and used passenger vehicles registered and reduced sales activities

due to restraint for going out

・Auto loan sales staff: 82 (77 in previous Q1)

• Delayed development of paperless system using online applications
• • Restarted in July to improve convenience and productivity

2009.6 2010.6 2011.6 2012.6 2013.6 2014.6 2015.6 2016.6 2017.6 2018.6 2019.6 2020.6	◼ Seek to maintain and improve screening level
Notes: 1. "Total volume of new loans" refers to the total amount of credit contracts newly signed in the period. The figures are inclusive of the total volume
of new loans of products other than automotive credit financing (Ecology Credit, etc.), and are the actual results of Premium Co., Ltd.	and profit margin, despite market headwinds
of new loans or warranties refers to the total of the amount of credit contracts or amount of warranty contracts newly signed in a month. The
2. "PH" stands for "Per Head," which refers to the average monthly total volume of new loans or warranties per sales staff. The monthly total volume
amount of credit contracts refers to the total amount of the balance of charges for the product and the split commission. Furthermore, PH	7
represents the actual results of Premium Co., Ltd.

Credit Finance Business: Loan Receivables

	Loan receivables
	Delinquency rate	¥326.1 billion
	(more than 3 months)
		(Billions of yen; %)
					268.3
	Q1 loan receivables				216.5
	Q1 delinquency rate

0.98 0.97 1.05%

2009.6 2010.6 2011.6 2012.6 2013.6 2014.6 2015.6 2016.6 2017.6 2018.6 2019.6 2020.6

Loan receivables:

+21.6% YoY

Delinquency rate:

1.05%

Factors driving change

• The delinquency rate has risen slightly since collection activities have stopped temporarily due to the stoppage of court operations caused by COVID-19

• Courts getting back to normal after reopening from the end of May
• June's initial arrears clearance was a record high for us
• Bolstered and improved collections capability with inclusion of Central Servicer Corporation in the Group

Notes: 1. "Loan receivables" refers to the total amount that has not been repaid or for which the warranty period has not elapsed at the end of the period out of
the cumulative total volume of new loans from the commencement of operations to the end of the period. The figures are inclusive of the receivables
balance of products other than automotive credit financing (Ecology Credit, etc.), and are the actual results of Premium Co., Ltd.
2. "Delinquency rate" refers to the total amount of receivables that are more than 3 months in arrears and special loan receivables (with judicial	8
intervention), expressed as a percentage of the loan receivables at the end of the period. Figures are the actual results for the periods subsequent to
when the receivables collection index definition was revised in the fiscal year ended March 31, 2013, and are the actual results of Premium Co., Ltd.

Credit Finance Business: Number of Network Stores

Number of credit network stores

	(Companies)
	22,676
	21,067
Q1 number of network stores		18,901

2010.6 2011.6 2012.6 2013.6 2014.6 2015.6 2016.6 2017.6 2018.6 2019.6 2020.6

Number of credit network stores:

+7.6％ YoY

Factors driving change

• Refrained from new sales calls during the state

of emergency

・Only up 0.6% from March 31, 2020

• Simultaneously promoted utilization of non-

operating network stores

・Utilized contact centers (outbound sales)

• Restarted efforts to establish new network stores from 2Q
• Continued to promote composite transactions with existing network stores at the same time as capturing new network stores

Note: "Number of network stores" refers to the number of companies that have signed a network store contract, counting company as one network store even if that company has several stores, and are the actual results of Premium Co., Ltd.	9
The figures are the actual results for the periods subsequent to when the Group's ERP system was renewed in the fiscal year ended March 31, 2010.

Automobile Warranty Business: Total Volume of New Warranties

Total volume of new warranties

(Millions of yen)

			1,100
			¥980 million
					EGS
					¥220
Q1 total volume for entire Group		740			million
Q1 total volume for EGS

Premium

Group

¥760

million

2009.6 2010.6 2011.6 2012.6 2013.6 2014.6 2015.6 2016.6 2017.6 2018.6 2019.6 2020.6

Automobile warranty: total volume of new

warranties

-10.5% YoY

Total volume of Premium Group: -11.3% YoY

Total volume of EGS: -7.7% YoY

Factors driving change

• Similar to auto credit, total volume declined due to the slowdown in the number of new and used passenger vehicles registered and reduced sales activities due to restraint for going out

• Continued to expand composite services at network stores by cross-selling with credit
• Began full-fledged efforts to tap into new network stores of EGS

Number of new network store contracts signed by EGS: +1,341.2% YoY

Notes: 1. EGS refers to EGS, Inc. (an automobile warranty company we acquired in April 2019).	10
2. "Total volume of new warranties" refers to the total amount of warranty contracts newly signed in the period. The actual results of Premium Co., Ltd. includes EGS.

Operating Income (P/L) by Segment

(Graph unit: millions of yen) (Figures in parentheses in graph indicate YoY change)

• Operating income by segment totaled ¥4,022 million (up 27.7% YoY)
• All three segments recorded growth, while new businesses and new subsidiaries drove the increase in earnings

4,022 (+27.7%)

217 (+97.3%)

3,149	957	(+9.2%)
110

Earnings Characteristics of Each Segment

• Room for further growth in all three segments
• The finance and automobile warranty segments are asset businesses building balances
• 1. Stable profits
  2. Few seasonal fluctuations in performance

2,542				Future revenue: ¥2,716 million stocked on B/S
37	877			(Credit finance business: ¥2,253 million and automobile warranty
			and other businesses: ¥463 million)
566
		◼ The new auto mobility segment will also see
				strong growth going forward mainly in the fee
		(+31.7%)		business
		2,848
	2,162				Finance segment (credit finance business, service business,
1,939				leasing business)
					Automobile warranty segment
					Auto mobility segment (maintenance business, software
					business, parts business)

FY19 1Q

FY20 1Q

FY21 1Q

11

	Trends in Operating Expenses (P/L)	(Graph unit: millions of yen)
		(Parentheses in graph indicate percentage versus operating income)

• Operating expenses totaled ¥3,484 million (up 25.2% YoY)
• Expenses increased by about ¥330 million after three subsidiaries newly joined the Group (operating expenses excluding the three companies were up 13.1% YoY)

FY20 Q1

Operating expenses ¥2,784 million

FY21 Q1

Operating expenses ¥3,484 million (up 25.2% YoY)

3,149

383

(12.2%)

589

(18.7%)

744

4,022

486

(12.0%)

Increase attributed to growth in credit finance business (increase in total volume of new loans), etc.

Increase attributed to growth in the automobile warranty business

	Increase associated with
644	increase in subsidiaries

(16.0%)

991 Employees: 591 as of June 30, 2020 (+109 vs. previous Q1)

(23.6%)	92	200
	(2.9%)	179
		(6.4%)	112
			(5.7%)
				(3.6%)	485	365

(24.6%) 186

(4.6%)

Increase in office rent from relocation of head office

250

(6.2%)	206	173
	(5.1%)
		(4.3%)

549	538

(15.4%)	(11.6%)

Booked parts cost (¥66 million) from this fiscal year

(13.6%)

(13.4%)

12

Other Topics

April 2020

April 2020

June 2020

July 2020

July 2020

Inclusion of Central Servicer Corporation in the Group

Central Servicer Corporation, a servicer with a wealth of experience in the collection of auto loan receivables, joined the Group. The company has a nationwide team of investigators and negotiators, which is expected to produce strong synergies with our credit finance.

Became a supporting member of JATTO and appointed director

We joined Japan Technical Training Organization (JATTO), which was established to provide information and support technology succession in the automobile maintenance industry.

We are working to provide comprehensive support to automotive maintenance businesses following the recent spread of advanced safety vehicles (ASV).

Joined JANE (first to participate from the auto credit and third-party used car warranty industry)

We joined the Japan Association of New Economy (JANE), which seeks to promote innovation, entrepreneurship and

globalization in Japan's economy and society. Through this membership, we will further contribute to the development of Japan's economy.

Began paperless contracts using online credit applications

We began paperless contracts using online credit applications in the core auto credit business.

Through this initiative, we will improve convenience and aim for new work styles suited to an era of living with COVID-19.

Launched membership service FIXMAN Club for automobile maintenance facilities

We launched membership service called FIXMAN Club for automobile maintenance facilities. We will provide various services to maintenance facilities that join the network, including priority delivery of vehicles for repair, personnel placement, and provision of advanced technology, etc.

13

(2) Impacts from the COVID-19 Pandemic

External Environment and Our Situation

• Total volume of new auto credit has dropped sharply following negative year-on-year growth in the used car market
• Gross margin increased and we worked to secure high quality receivables using a service-focusedsales policy, including proposals of composite products, etc.
• Both cash on hand and internal reserves are more than sufficient
• 110 payment deferrals in Q1 totaling ¥170 million, representing about 0.05% of loan receivables, indicating minimal disruption

Q1 (April-June) external environment and our situation (YoY change)

External	Number of new passenger vehicles registered	-31.8%
environment	Number of used passenger vehicles registered	-8.2%
	Total volume of new auto credit	-11.6%
	Auto credit gross margin		＋8.4％
	Payment deferrals (number/value)	110/¥172 million
Our
Cash position		Cash and cash equivalents	¥10,236 million (+88.8% YoY)
situation
	(As of June 30, 2020)		Short-term borrowing facilities	¥13,000 million (+73.3% YoY)
	Internal reserves		Retained earnings	¥4,090 million (+3.3% YoY)
	(As of June 30, 2020)		Future expected earnings	¥27,161 million (+20.5% YoY)

Note: Auto credit gross margin is the percentage of the amount of split commission received from customers versus the total credit contract value (total volume) after deducting sales promotion expenses and cash advances.

15

Internal and External Initiatives for COVID-19

✓

✓

External

initiatives

Internal initiatives

Actively implemented social and economic contribution activities

Promoted initiatives to co-exist with COVID-19 giving top priority to employee safety and stopping the spread

State of emergency			▼ Donation ceremony held at Saitama
		June	July	Prefectural Office
April	May	(Right) Motohiro Ono, Governor of Saitama Prefecture
(Left) Yohichi Shibata, President and Representative

Director

Formed "Premium Value Support Project"

Support restaurants by	Held financial		Held general
results presentation		meeting of
purchasing takeout
online		shareholders online

Donated medical supplies to hospitals and government agencies

(Surgical masks, protective clothing, gowns, goggles, face shields, etc.)

Introduced and encouraged working from home (WFH), staggered working hours, and working on weekends, as well as

opened satellite offices, which are easy to reach from employees' homes

▼ Video shooting for sales activities

Established the ICT Planning Team	▼ Awareness raising internally about social distancing
Actively promoted digitization of operations
Refrained from in-person sales and shortened
time spent on sales
Increased rate of employees WFH to 70%

	Introduced Stay Home leave (granted all employees five days of special leave)
▲ Distribution of original masks	Promoted inkan (personal seal)-less, paperless and
	digital transformation (DX)	16

(3) Earnings Forecast for FY Ending

March 31, 2021

Earnings Forecast for FY Ending March 31, 2021

(Graph/table unit: millions of yen)

• Disclosed now because it has become possible to forecast performance taking into account the situation of market recovery, despite the prevalence of COVID-19
• Expect to see consistent, ongoing growth, with increased sales, profits, and dividends, under our business structure for living with COVID-19

	Forecast for FY	Results for FY	YoY
	ending March 31,	ended March 31,
	change
	2021	2020
Operating income	17,140	14,016	+22.3%
Other income	622	2,110	-70.5%
Operating expenses	14,864	12,458	+19.3%
Profit before tax	2,865	2,604	+10.0%
Profit attributable to	1,894	1,466	+29.3%
owners of parent
Basic earnings	148.38	112.33	+32.1%
per share (yen)
Annual dividend (yen)	45.0	44.0	+2.3%

Operating income

Up 22.3% YoY

	17,140
14,016
FY20 results	FY21 forecast

Profit before tax

Up 10.0％ YoY

	2,865
2,604
FY20 results	FY21 forecast	18

Comparison of Medium-Term Management Plan and Forecast for FY Ending March 31, 2021

(Table unit: millions of yen)

• Given the downturn in our core business from COVID-19, operating income is expected to fall below the plan, despite additional income recorded from Central Servicer Corporation and growth in the auto mobility segment
• Profit before tax expected to be higher than planned from cost saving measures and gain on bargain purchase

Forecast for

Comparison

Medium-Term

with Medium-

FY ending

Management

Term

March 31,

Plan

Management

2021

Plan

Operating income

17,140

17,500

-2.1%

Profit before tax

2,865

2,400

+19.4%

Profit attributable to

1,894

1,500

+26.3%

owners of parent

Topics

• Operating income
• • Additional income booked from Central Servicer Corporation offset by downturn in income from credit and automobile warranty businesses
  • Expect to see growth in auto mobility segment
• Profit before tax
• • Booked gain on bargain purchase of ¥590 million
  • Implemented cost saving measures

• Medium-TermManagement Plan for next fiscal year and beyond considered qualitative and quantitative review due to the impacts of COVID-19

19

Management Policy for FY ending March 31, 2021

• The policy is based on the assumption that COVID-19 will not end this fiscal year and the automobile market will not see major growth
• Existing businesses forecast conservatively, but investment in Medium-Term Management Plan strategies will be sustained based on prudent decision-making

Forecast of

External

Environment

COVID-19

• Major concerns about a second and third wave of COVID-19, as it remains unclear when the pandemic will end, and Japan's nationwide
  economic growth rate is expected to continue declining

Automobile market

• Q2 expected to be down YoY given impacts of rush-in demand ahead of the consumption tax hike last year
• Forecast suggests recovery in Q3 and beyond, but significant growth is not expected (forecast to be on par with previous year)

Risks Facing ✓ Decline in total volume of

the Company new loans and warranties

• Decline in profit margin and rising delinquencies in case of blindly increasing market share

✓ Increase in delinquent	✓ Outbreak of virus inside
receivables from economic	the Company
downturn	✓ Occurrence of cluster

policy for fiscal year

• Promote DX of services for network stores

Risk	✓	Introduce online application system for all products
Countermeasures	✓	Begin paperless contracts

• • Develop portal site dedicated for network stores
• Quickly launch auto mobility services

✓ Emphasize quality (profits and good quality	✓ Modify office layout and open
receivables) over quantity (market share)	satellite offices
✓ Improve collection capabilities from	✓ Promote DX of operating
synergies with Central Servicer Corporation	environment (Paperless, inkan-less, WFH
✓ Improve credit screening levels	infrastructure, etc.)

Our this

Medium-Term	✓	Begin and quickly expand membership services: FIXMAN CLUB service for maintenance facilities and PREMIUM CLUB service for automobile dealers
Management
✓ Develop Global Warranty Platform as online application and administrative system for automobile warranties

Plan Strategy	✓ Make parts sales business and automobile logistics business profitable
	✓ Expand FIXMAN brand maintenance facilities nationwide through maintenance network expansion	20

(4) Appendix

Company Profile

Name	Premium Group Co., Ltd.
Securities Code / Exchange	7199 / First Section of Tokyo Stock Exchange
Established	May 25, 2015
Note: G-ONE Credit Services Co., Ltd. (currently, Premium Co., Ltd.) was established in 2007.
Head Office	The Okura Prestige Tower, 2-10-4 Toranomon, Minato-ku, Tokyo
President and Representative Director	Yohichi Shibata
Number of Issued Shares	13,274,500 (as of March 31, 2020)
	Note: The Company executed a 1-for-2 share split on April 1, 2019.
Capital	¥1,622,838,000 (non-consolidated; as of March 31, 2020)
Number of Employees	591 (consolidated; as of June 30, 2020) (Note) Number of persons employed by the Group excluding temporary workers
	Coupland Cardiff Asset Management LLP: 8.10%
Main Shareholders	BNY Mellon Asset Management Japan Limited: 7.59%
Russell Investments Implementation Services, LLC: 7.16%

	Mitsubishi UFJ Financial Group, Inc.: 5.27%
	(As of July 31, 2020; referencing the report on changes in large volume holdings, etc.)
	・Finance in Japan
Description of Business	・Development and marketing of automotive warranty products
・Provision of auto mobility services
	・Credit consulting business and warranty business outside Japan (Thailand, etc.)
		22

Overview of Premium Group

							Other businesses
	Automobile warranty			5.0%
	business
	26.1%
		Operating income				◼ Auto mobility business
						・Provision of multiple services required for
			by business				managing automobile logistics business
■ Automobile warranty						◼ Overseas business
	(FY Ended March 31,				・Business expansion outside Japan
・Automobile warranty business for
2020)				(mainly in Thailand and Indonesia)
	automobiles purchased by consumers
¥14,016				Credit finance
・Mainly provides warranty products
	developed in-house				business
			million
							68.8%
							■ Credit finance business:
							・Provision of auto loans mainly for used
							cars
							・Shopping credit, including PV systems
	Stock-type business	Cash rich

Stock-type profit structure for both credit	Stable cash position for both credit finance and
automobile warranty businesses underpinned by
finance and automobile warranty businesses
"lump-sum advance" of funds and guarantee
where profit is deferred
commission payments
Business model expected to see
Business model with robust cash
consistent growth
flows

23

B/S

				（Thousand	yen）
	FY20	FY20	FY21	Compared to
	previous	QoQ
	(As of June 30, 2019)	(As of March 31, 2020)	(As of June 30, 2020)
	quarter
Assets
Cash and cash equivalents	6,285,647	6,285,647	10,235,760	162.8%		162.8%
Financing receivables	20,010,590	20,010,590	21,551,401	107.7%		107.7%
Other financial assets	6,408,313	6,408,313	7,321,201	114.2%		114.2%
Property, plant and equipment	3,092,356	3,092,356	3,550,612	114.8%		114.8%
Intangible assets	5,950,315	5,950,315	5,987,765	100.6%		100.6%
Goodwill	3,958,366	3,958,366	3,958,366	100.0%		100.0%
Investments accounted for using	1,224,273	1,224,273	1,297,300	106.0%		106.0%
equity method
Deferred tax assets	-	-	9,006	-		-
Other assets	2,964,814	2,964,814	3,288,808	110.9%		110.9%
Insurance assets	8,308,740	8,308,740	6,038,775	72.7%		72.7%
Total assets	58,203,414	58,203,414	63,238,994	108.7%		108.7%
Liabilities
Financial guarantee contracts	22,063,146	22,063,146	22,534,050	102.1%		102.1%
Borrowings	16,420,882	16,420,882	20,892,264	127.2%		127.2%
Other financial liabilities	6,340,424	6,340,424	5,724,164	90.3%		90.3%
Provisions	326,535	326,535	292,931	89.7%		89.7%
Income taxes payable	385,952	385,952	206,770	53.6%		53.6%
Deferred tax liabilities	1,354,593	1,354,593	1,580,481	116.7%		116.7%
Other liabilities	5,999,461	5,999,461	6,134,004	102.2%		102.2%
Total liabilities	52,890,993	52,890,993	57,364,665	108.5%		108.5%
Equity		-
Equity attributable to owners of
Share capital	1,533,686	1,533,686	1,548,912	101.0%		101.0%
Capital surplus	1,259,936	1,259,936	1,266,495	100.5%		100.5%
Treasury shares	△ 1,200,518	△ 1,200,518	△ 1,200,557	100.0%		100.0%
Retained earnings	3,587,269	3,587,269	4,090,337	114.0%		114.0%
Other components of equity	62,044	62,044	104,429	168.3%		168.3%
Total equity attributable to	5,242,417	5,242,417	5,809,616	110.8%		110.8%
owners of parent
Non-controlling interests	70,003	70,003	64,713	92.4%		92.4%
Total equity	5,312,421	5,312,421	5,874,330	110.6%		110.6%	24
Total liabilities and equity	58,203,414	58,203,414	63,238,994	108.7%		108.7%

P/L

				（Thousand yen）
	Q1 FY20	Q4 FY20	Q1 FY21	Compared to
	(April 1, 2019 - June	(January 1, 2020 -	(April 1, 2020 - June	previous	QoQ
	31, 2019)	March 31, 2020)	31, 2020)	quarter
Operating income	3,148,563	3,843,227	4,021,820	127.7%	104.6%
Other finance income	6,789	328	37,999	559.7%	11571.0%
Share of profit of investments account	-	-	12,957	-	-
Other income	2,064,527	11,038	613,257	29.7%	5555.7%
Total income	5,219,879	3,854,594	4,686,034	89.8%	121.6%
Operating expenses	2,784,040	3,503,574	3,484,496	125.2%	99.5%
Other finance costs	9,165	121,141	19,239	209.9%	15.9%
Share of loss of investments accounted	61,783	828,418	-	-	-
Other expenses	864	40,088	2,595	300.3%	6.5%
Total expenses	2,855,852	4,493,221	3,506,331	122.8%	78.0%
Profit (loss) before tax	2,364,027	△ 638,628	1,179,702	49.9%	△184.7%
Income tax expense	819,521	△ 124,874	401,099	48.9%	△321.2%
Profit (loss)	1,544,507	△ 513,754	778,604	50.4%	△151.6%
Profit (loss) attributable to:			-
Owners of parent	1,545,663	△ 504,871	783,542	50.7%	△155.2%
Non-controlling interests	△ 1,156	△ 8,882	△ 4,938	427.1%	55.6%

25

P/L（Operating income/Operating expenses）

				（Thousand	yen）
	Q1 FY20	Q4 FY20	Q1 FY21	Compared to
	(April 1, 2019 - June	(January 1, 2020 -	(April 1, 2020 - June	previous	QoQ
	31, 2019)	March 31, 2020)	31, 2020)	quarter
Operating income
Finance income	1,877,895	2,163,746	2,350,244	125.2%		108.6%
Warranty revenue	876,684	944,921	957,331	109.2%		101.3%
Other commission sales	279,934	364,296	455,423	162.7%		125.0%
Software sales	68,683	86,941	70,864	103.2%		81.5%
Other	45,367	195,591	187,959	414.3%		96.1%
Total	3,148,563	3,843,227	4,021,820	127.7%		104.6%
				（Thousand	yen）
	Q1 FY20	Q4 FY20	Q1 FY21	Compared to
	(April 1, 2019 - June	(January 1, 2020 -	(April 1, 2020 - June	previous	QoQ
	31, 2019)	March 31, 2020)	31, 2020)	quarter
Operating expenses
Finance costs	27,888	27,905	36,382	130.5%		130.4%
Guarantee commission	383,379	502,874	486,480	126.9%		96.7%
Impairment loss on financial assets	34,206	23,870	△ 40,318	△117.9%	△168.9%
Employee benefit expenses	743,577	903,032	990,604	133.2%		109.7%
Warranty cost	588,678	595,051	643,607	109.3%		108.2%
System operation costs	48,869	466,084	170,474	348.8%		36.6%
Depreciation	22,675	40,261	63,793	281.3%		158.4%
Amortization	64,051	66,704	64,727	101.1%		97.0%
Right-of-use asset depreciation	91,765	156,646	186,409	203.1%		119.0%
Taxes and dues	112,290	196,942	173,368	154.4%		88.0%
Commission expenses	178,516	217,865	205,511	115.1%		94.3%
Rent expenses on land and buildings	8,274	3,172	12,873	155.6%		405.8%
Outsourcing expenses	150,637	△ 210,075	79,208	52.6%	△37.7%
Other operating expenses	329,234	513,244	411,379	125.0%		80.2%
Total	2,784,040	3,503,574	3,484,496	125.2%		99.5%	26