Acom Co., Ltd. · TSE:8572
Acom — FY2001 Earnings Presentation
48 slides from Acom's earnings presentation, May 1, 2002
Slide 1: Earnings Release & Corporate Strategy Conference
Earnings Release & Corporate Strategy Conference Fiscal Year Ended March 31, 2002 ACOM CO., LTD. http://ir.acom.co.jp/
Slide 2: Conference Schedule
Conference Schedule May 1, 2002 1. Opening 2. Results of FY01 & Outlook for FY02 3. Overview of the FY01 4. Business Plans for FY02 5. New Business Structure 6. Report on Financial Results 7. Questions & Answer Session 8. Closing This presentation contains statements that constitute forward-looking
Slide 3: Results of FY01 & Outlook for FY02
2. Results of FY01 & Outlook for FY02 Shigeyoshi Kinoshita President
Slide 4: Consolidated Financial Results
Consolidated Financial Results Actual YOY (Billions of yen) u Operating Income 414.9 39.2 10.4% u Operating Profit 171.2 10.9 6.8% u Income Before 171.8 11.0 6.9% Extraordinary Items u Net Income 95.6 14.2 17.5% 4
Slide 5: Consolidated Financial Outlook
Consolidated Financial Outlook Estimates YOY (Billions of yen) u Operating Income 443.2 28.2 6.8% u Operating Profit 179.2 7.9 4.6% u Income Before 176.7 4.8 2.8% Extraordinary Items u Net Income 97.3 1.6 1.7% 5
Slide 6: Consolidated Financial Summary
Consolidated Financial Summary (Billion yen) Operating Income (Billion yen) Operating Profit 443.2 414.9 179.2 375.6 171.2 160.3 (Estimate) (Estimate) Income Before (Billion yen) Extraordinary Items (Billion yen) Net Income 95.6 97.3 171.8 176.7 160.8 81.3 (Estimate) (Estimate) 6
Slide 7: Non-Consolidated Financial Results
Non-Consolidated Financial Results Actual YOY (Billions of yen) u Operating Income 400.8 34.1 9.3% u Operating Profit 168.9 10.4 6.6% u Income Before 170.6 11.6 7.3% Extraordinary Items u Net Income 94.7 14.0 17.4% 7
Slide 8: Non-Consolidated Financial Outlook
Non-Consolidated Financial Outlook Estimates YOY (Billions of yen) u Operating Income 424.0 23.1 5.8% u Operating Profit 174.6 5.6 3.3% u Income Before 176.6 5.9 3.5% Extraordinary Items u Net Income 98.8 4.0 4.2% u Annual Dividend 80 yen 8
Slide 9: Non-Consolidated Financial Summary
Non-Consolidated Financial Summary (Billion yen) Operating Income (Billion yen) Operating Profit 424.0 400.8 174.6 366.7 168.9 158.5 (Estimate) (Estimate) Income Before (Billion yen) Extraordinary Items (Billion yen) Net Income 98.8 94.7 176.6 170.6 159.0 80.7 (Estimate) (Estimate) 9
Slide 10: Overview of the FY01
3. Overview of the FY01
Slide 11: Consolidated Subsidiaries & Equity Method Affiliates
Consolidated Subsidiaries & Equity Method Affiliates u JCK CREDIT CO., LTD. Ø Installment receivables outstanding: ¥49.1 billion at the end of prior FY à ¥70.0 billion at the end of this FY (up 42.5%) u SIAM A&C CO., LTD. (Thailand) Ø Installment receivables outstanding à About ¥6.2 billion (As of D
Slide 12: New Businesses
New Businesses u Tokyo-Mitsubishi Cash One Ltd. Ø March 4, 2002 à Started operation Ø Tie-up with ACOM for guarantee business u Guarantee business Ø May 21, 2001 à Started guarantee business with a regional bank Ø Guaranteed loans receivable à About ¥9.5 billion (As of March 31, 2002) Ø Tie-ups à 5
Slide 13: Business Plans for FY02
4. Business Plans for FY02
Slide 14: Business Plans for FY2002
Business Plans for FY2002 uEstablishment of new business structure Establish New Business Structure Building Building foundation for L/T foundation for stable growth new cost structure 14
Slide 15: New Business Structure
5. New Business Structure
Slide 16: Loan Business Structure Reform
Loan Business Structure Reform u Increasing sales strength and efficiency by decentralizing branch operations Branch operations Branch operations OTC new applications & contracts OTC new applications & contracts OTC Loans & payments OTC Loans & payments OTC Customer inquiries OTC Customer inquiries
Slide 17: Reinforce The Contact Center
Reinforce The Contact Center uUnifying management of services, sales, and marketing development Customer Customer Service Contact Service Branch Branch Center Center Center Business Business Promotion Promotion Dept. Dept. Branch Branch Business Business Development Development & & Contact Center Co
Slide 18: New Business Structure
New Business Structure uFully operated in Oct. 2002 Customer Counter Counter MUJINKUN MUJINKUN Telephone Telephone Internet Internet Mobile Mobile Contact Center Call Center Branch Service Center Counseling Center Promotion Center MUJINKUN Branch Customer Education Branch Support Support Marketing M
Slide 19: Business Policies for FY02
Business Policies for FY02 uStrengthen the competitiveness of services though a new business structure uImprove profitability through lower operational costs uIncrease company value through meticulous attention to business ethics and “brand development activities” 19
Slide 20: ir.acom.co.jp
http://ir.acom.co.jp/
Slide 21: Report on Financial Results
6. Report on Financial Results Satoru Tomimatsu Chief IR Officer
Slide 22: Consolidated Key Financial Data
Consolidated Key Financial Data DATA BOOK Page 3 2002/3 2003/3 Actual YOY Actual YOY (Billions of yen) (%) (Billions of yen) (%) uOperating Income 414.9 10.4 443.2 6.8 uOperating Profit 171.2 6.8 179.2 4.6 lNon-operating income 2.0 16.1 1.0 -50.7 lNon-operating expenses 1.4 15.6 3.5 143.0 uIncome Be
Slide 23: Non-Consolidated Key Financial Data
Non-Consolidated Key Financial Data DATA BOOK Page 5 2002/3 2003/3 Actual Estimate (Millions of yen) (Millions of yen) uNon-operating Income 2,126 2,050 lGains on investment in anonymous association agreement 529 - lGains on sales of investments 307 100 lInterest received 250 1,100 uNon-operating Ex
Slide 24: Operating Income
Operating Income DATA BOOK Page 6 Financial Service Business 2002/3 2003/3 Actual YOY Estimate YOY (¥m) (%) (¥m) (%) uLoan Business 373,235 9.3 390,700 4.7 l Unsecured loans 365,091 9.5 382,100 4.7 l Secured loans 8,143 0.5 8,600 5.8 uCredit Card Business 3,692 58.9 5,700 54.7 uInstallment Sales Fin
Slide 25: Operating Expenses
Operating Expenses DATA BOOK Page 7 Other Operating Expenses 2002/3 2003/3 Actual YOY Estimate YOY (¥m) (%) (¥m) (%) u Personnel Costs 35,782 4.9 38,000 6.2 u Advertising and Promotional Expenses 19,304 -4.5 18,200 -5.7 uExpenses for Computer 23,336 16.3 25,400 8.8 l System development fee 10,402 92
Slide 26: Operating Expenses
Operating Expenses DATA BOOK Page 7 Other Operating Expenses 2002/3 2003/3 Actual YOY Estimate YOY (¥m) (%) (¥m) (%) uInsurance Expenses 6,247 -5.0 9,000 44.0 uDepreciation Expenses 3,829 -9.1 3,500 -8.6 uTaxes and Other Public Charge 6,758 2.9 7,100 5.0 uOther 11,261 4.7 12,600 11.9 lCommunication
Slide 27: Receivables Outstanding
Receivables Outstanding DATA BOOK Page 8 (bln yen) íUnsecured Consumer Loans 1,800 1,638.80 1,600 1,547.85 1,426.70 1,400 1,271.87 1,200 1,131.26 1,015.31 1,000 800 600 400 200 0 '98/3 '99/3 '00/3 '01/3 '02/3 '03/3 (Estimate) 7
Slide 28: Receivables Outstanding
Receivables Outstanding DATA BOOK Page 8 (bln yen) íSecured Loans 80 75.60 73.20 73.85 70 67.84 68.04 67.94 60 Other 50 Loans to Enterprise 40 Real Estate Loans 30 Real Estate Card Loans 20 10 0 '98/3 '99/3 '00/3 '01/3 '02/3 '03/3 (Estimate) 8
Slide 29: Average Balance per Accounts
Average Balance per Accounts DATA BOOK Page 8 (¥k) íUnsecured Consumer Loans 600 Avg. Bal/Acct 500 496 512 479 400 300 Initial Avg. Initial Avg. Lending Amount Lending Amount for Age 20s 200 157 165 161 100 126 138 136 0 '00/3 '01/3 '02/3 9
Slide 30: Number of New Customers
Number of New Customers DATA BOOK Page 8 íUnsecured Consumer Loans 500,000 476,493 450,000 452,747 442,092 442,165 427,345 400,000 300,000 200,000 100,000 0 '98/3 '99/3 '00/3 '01/3 '02/3 '03/3 (Estimate) 10
Slide 31: Number of Loan Business Outlets
Number of Loan Business Outlets DATA BOOK Page 9 2,000 1,741 1,761 1,765 1,800 1,635 1,600 1,521 1,400 1,200 1,126 1,000 800 Unstaffed 600 610 1,012 1,123 1,220 1,240 1,254 400 516 509 512 521 521 511 200 Staffed 0 '98/3 '99/3 '00/3 '01/3 '02/3 '03/3 (Estimate) 11
Slide 32: CD and ATMs
CD and ATMs DATA BOOK Page 9 60,000 57,388 LAWSON (Loppi) 50,000 City Sales Finance 40,000 38,430 Banks Retailers etc. 30,000 Regional 18,478 Banks 20,000 10,000 Proprietary 0 '00/3 '01/3 '02/3 12
Slide 33: Loan Interest Rate
Loan Interest Rate DATA BOOK Page 10 (%) 28.0 26.52 Unsecured Loans 26.02 26.0 25.70 (25.51) 24.76 (25.08) 24.32 (24.86) 23.97 24.0 (24.08) (23.80) (23.46) 22.0 Avg. Loan Interest Rate During the FY 20.0 18.0 '98/3 '99/3 '00/3 '01/3 '02/3 '03/3 (Estimate) 13
Slide 34: Receivables Outstanding by Interest Rate
Receivables Outstanding by Interest Rate DATA BOOK Page 10 (bln yen) íUnsecured Consumer Loans 1,800 Less than 15.0% 1,600 15.0 to 18.0% 1,400 18.25 to 19.0% 1,200 20.0 to 24.82% 1,000 800 25.0 to 26.5% 600 400 27.375% 200 28.470% or more 0 '98/3 '99/3 '00/3 '01/3 '02/3 '03/3 (Estimate) 14
Slide 35: Classified Receivables Outstanding
Classified Receivables Outstanding DATA BOOK Page 10 (bln yen) íUnsecured Consumer Loans 1,800 1,600 1,400 Over 1 million yen 1,200 1,000 500,000 to 1 million yen 800 600 400 300,000 to 500,000 yen 200 Less than 300,000 yen 0 '98/3 '99/3 '00/3 '01/3 '02/3 '03/3 (Estimate) 15
Slide 36: Bad Debt Write-offs
Bad Debt Write-offs DATA BOOK Page 11 (bln yen) 90 Bad Debt Write-offs 852 80 (Loan Business) 777 4.0% 70 3.59% 619 3.5% 60 3.15% 659 543 2.86% 2.63% 2.72% 3.0% 50 2.50% 542 443 443 2.5% 40 369 374 Allowance for 2.0% 323 Bad Debts 30 274 1.5% 20 1.0% Bad Debt write-offs 10 0.5% 0 0.0% '98/3 '99/3 '0
Slide 37: Changes in Standard for Allowance for Bad Debts
Changes in Standard for Allowance for Bad Debts uMore rationalized standard in accordance with status of credits Conventional Standard New Standard uNon-taxable uGeneral Allowance ØBased on the 3-year historical rate lUnsecured loans of write-offs ØCalculated by prior year’s write-off uTaxable ratio
Slide 38: Occurrence Ratio (03/02)
Annual Bad Debt Write-offs Occurrence Ratio Classified Risk Rank uLower risk rank number for higher bad debt write-offs occurrence ratio (%) 40.00 35.00 Unsecured Consumer Loans 30.00 Occurrence Ratio (03/02) Bad Debt Write-offs 25.00 20.00 15.00 10.00 5.00 0.00 1 4 7 10 13 16 19 22 25 28 31 34 37 4
Slide 39: Bad Debts & Write-offs
Bad Debts DATA BOOK Page 11 & 12 (%) 7.0 6.69 5.95 5.88 6.0 Write-offs 5.0 2.72 2.86 3.15 4.0 3.0 Bad Debts 2.0 2.53 2.31 2.70 1.0 Arrears 0.70 0.71 0.84 0.0 '00/3 '01/3 '02/3 Note: Loans in arrears refers to loans past due for less than 3 months, excluding balance held by headquarters' collection d
Slide 40: Bad Debts, Write-offs, Loans in Arrears
Bad Debts, Write-offs, Loans in Arrears DATA BOOK Page 11&12 (Millions) of yen) 00/3 (%) 01/3 (%) 02/3 (%) Write-offs 37,461 2.72 44,392 2.86 54,251 3.15 00/3 (%) 01/3 (%) 02/3 (%) Bad Debts 34,077 2.53 34,596 2.31 43,691 2.70 Loans to bankruptcy parties 3,776 0.28 3,650 0.24 7,204 0.45 Civil Rehabi
Slide 41: Loans in Arrears & Bad Debt Write-offs
Loans in Arrears & Bad Debt Write-offs Classified Receivables Outstanding DATA BOOK Page 11&12 uCustomer Accounts Comparison (2002/3) íReceivables outstanding of unsecured loans for consumer (loans in arrears included) 79.2% Less than ¥500k 12.9% 7.9% ¥500k to ¥1m Over ¥1m 2.0% íLoans in arrears (mo
Slide 42: Fund Procurement
Fund Procurement DATA BOOK Page 13 (bln yen) 1,600 100% 98.4% 98.5% 99.0% 98.7% 1,400 Long Term 81.4% 82.6% 88.1% 80% 1,200 76.3% 75.9% 1,000 71.0% Fixed 60% 63.9% 800 45.9% Indirect 40% 600 73.0% 73.0% 400 75.7% 81.9% 27.0% 20% 27.0% 88.9% 200 90.9% 18.1% 24.3% Direct 9.1% 11.1% 0 0% Avg. interest
Slide 43: ACOM MasterCard
ACOM MasterCard DATA BOOK Page 14 2001/3 2002/3 2003/3 Actual Actual Estimate uCardholders 752,509 1,004,118 1,185,700 uCard Shopping Receivables (¥m) 19,157 31,388 51,000 uRevolving Receivables 16,123 27,731 43,400 (¥m) uOperating Income (¥m) 2,298 3,676 5,700 uCard Issue Machines 773 1,200 1,200
Slide 44: Installment Sales Finance
Installment Sales Finance DATA BOOK Page 14 2001/3 2002/3 2003/3 Actual Actual Estimate uNo. of Customer 446,217 486,532 510,900 uInstallment Receivables 150,581 161,247 171,800 (¥m) uAdjusted Receivables 124,046 133,409 141,900 uOperating Income (¥m) 14,287 16,278 16,700 24
Slide 45: Guarantee Business
Guarantee Business DATA BOOK Page 14 2002/3 2003/3 Actual Estimate uNumber of Accounts 32,432 213,100 uReceivables Outstanding 9,539 74,800 (¥m) uOperating Income (¥m) 319 2,200 25
Slide 46: Financial Ratios
Financial Ratios DATA BOOK Page 15 & 16 (%) 22.0 uROE 20.0 18.0 19.2 16.0 17.8 17.4 17.5 14.0 16.1 15.8 12.0 10.0 8.0 6.0 4.0 2.0 0.0 '98/3 '99/3 '00/3 '01/3 '02/3 '03/3 (Yen) 700.00 uEPS (Estimate) 600.00 647.31 675.40 500.00 550.75 504.93 400.00 300.00 385.32 300.29 200.00 100.00 0.00 '98/3 '99/3
Slide 47: Q&A Session
7. Q&A Session
Slide 48: Earnings Release & Corporate Strategy Conference
Earnings Release & Corporate Strategy Conference Fiscal Year Ended March 31, 2002 ACOM CO., LTD. http://ir.acom.co.jp/