Acom Co., Ltd. · TSE:8572
Acom — H1 FY2002 Earnings Presentation
48 slides from Acom's earnings presentation, Nov 9, 2001
Slide 1: Earnings Release Conference, 1st Half FY Ending March 2002
Earnings Release Conference 1st Half of Fiscal Year Ending March 2002 ACOM CO., LTD. http://ir.acom.co.jp/
Slide 2: Conference Schedule
Conference Schedule November 9, 2001 1. Opening 2. Financial Results and Outlook 3. Overview of the First Half 4. Outline & Results of New Business 5. Business Plans for the Second Half 6. Report on Financial Results 7. Questions & Answer Session 8. Closing This presentation contains statements that
Slide 3: 2. Financial Results and Outlook
2. Financial Results and Outlook Shigeyoshi Kinoshita President
Slide 4: Consolidated Financial Results
Consolidated Financial Results Actual YOY (Billions of yen) u Operating Income 203.7 20.7 11.3% u Operating Profit 86.5 7.5 9.5% u Income Before 87.1 7.7 9.8% Extraordinary Items u Net Income 49.0 10.6 27.6% 4
Slide 5: Consolidated Financial Outlook
Consolidated Financial Outlook Estimates YOY (Billions of yen) u Operating Income 416.2 40.5 10.8% u Operating Profit 174.2 13.8 8.7% u Income Before 174.4 13.5 8.5% Extraordinary Items u Net Income 96.7 15.3 18.8% 5
Slide 6: Consolidated Financial Summary
Consolidated Financial Summary (Billion yen) Operating Income (Billion yen) Operating Profit 416.2 174.2 375.6 160.3 182.9 203.7 86.5 79.0 (Estimate) (Estimate) Income Before (Billion yen) Extraordinary Items (Billion yen) Net Income 174.4 96.7 160.8 81.3 49.0 79.3 87.1 38.4 (Estimate) (Estimate) 6
Slide 7: Non-Consolidated Financial Results
Non-Consolidated Financial Results Actual YOY (Billions of yen) u Operating Income 197.1 17.3 9.6% u Operating Profit 85.6 7.5 9.7% u Income Before 86.3 7.8 10.1% Extraordinary Items u Net Income 47.6 9.4 24.9% 7
Slide 8: Non-Consolidated Financial Outlook
Non-Consolidated Financial Outlook Estimates YOY (Billions of yen) u Operating Income 401.9 35.1 9.6% u Operating Profit 172.1 13.5 8.6% u Income Before 174.1 15.0 9.5% Extraordinary Items u Net Income 96.3 15.5 19.2% u Annual Dividend 80 yen 8
Slide 9: Non-Consolidated Financial Summary
Non-Consolidated Financial Summary (Billion yen) Operating Income (Billion yen) Operating Profit 401.9 172.1 366.7 158.5 179.8 197.1 78.0 85.6 (Estimate) (Estimate) Income Before (Billion yen) Extraordinary Items (Billion yen) Net Income 96.3 174.1 159.0 80.7 86.3 47.6 78.5 38.1 (Estimate) (Estimate
Slide 10: 3. Overview of the First Half
3. Overview of the First Half
Slide 11: 4. Outline & Results of the New Business
4. Outline & Results of the New Business
Slide 12: Business Portfolio
Business Portfolio Loan Credit Card Installment Sales Finance Comprehensive Financial Services Business with Solid Earnings Power Diversifying Business Portfolio with New Earning Bases + + + Guarantee New Non-Bank Servicing Total Financial Services Group 12
Slide 13: Building a Financial Service Group
Building a Financial Service Group Guarantee Start Operation in May 21, 2001 New Non-Bank Established in August 9, 2001 Servicing Start Operation in July 2, 2001 Total Financial Services Group 13
Slide 14: New Business (Guarantee Business)
New Business (Guarantee Business) uNew fee business utilizing risk assessing capability (ex.) Hokkaido Bank “rapiDo Branch” (Launched May 2001) Customers rapiDo Branch Consignment of ACOM Application credits guarantee Guarantee Center Screening Screening for Acceptable 24hrs a day, by using credits
Slide 15: New Business (Guarantee Business): Tie-up with Regional Banks
New Business (Guarantee Business) uTie-up with major regional banks Partner Commencement Date Ø The Hokkaido Bank, Ltd. May 21, 2001 Ø The Hiroshima Bank, Ltd. August 20, 2001 Ø The Suruga Bank, Ltd. September 10, 2001 Ø The Jyuuroku Bank, Ltd October 22, 2001 n Results (As of 2001/09/30) Ø Number o
Slide 16: New Markets in Guarantee Business: Hokkaido Bank
New Markets in Guarantee Business: (example) Hokkaido Bank u Comparison of new ACOM customers in Hokkaido and at “rapiDo Branch ” u Loan contracts (comparison taking ACOM ACOM’’s contracts from 1/4/00 to 30/9/00 as 100) ACOM 107 (1/4/01-30/9/01) Overlap 10% rapiDo 131 (21/5/01-30/9/01) u Marital sta
Slide 17: New Business (New Non-Bank Business)
New Business (New Non-Bank Business) u Develop a larger customer base by combining ACOM’s screening and industry know-how with banks’ brand Tokyo-Mitsubishi Cash One Ltd. n Date of Establishment n Interest Rate Ø August 9, 2001 Ø 15% - 18% n Commencement of Business n Loan Amount Ø Scheduled for Feb
Slide 18: New Business (Servicing Business)
New Business (Servicing Business) u New fee business utilizing know-how on the management of credit IR Loan Servicing, Inc. n Commencement of Business n Number of Employees Ø July 2, 2001 Ø 12 (As of 2001/9/30) Ø Osaka Branch Scheduled to n Paid-in Capital open January 2001 Ø 500 million yen n Resul
Slide 19: 5. Business Plans for the Second Half
5. Business Plans for the Second Half
Slide 20: ACOM's New Customer Acquisition Channel Expansion
ACOM’s New Customer Acquisition Channel Expansion u Eliciting potential customers through new channel development In response to the Internet age Mobile Click & MUJINKUN phone Large Started on Aug. 31, 2001 Internet ACOM Mobile phone subscribers (mn) Consumer (Tie-up card) Source: MoPMHAPT Loan Mark
Slide 21: Loan Business Structure Reform
Loan Business Structure Reform (Orientation) uIncreasing marketing strength and efficiency through branch operations decentralization and concentration Branch operations Branch operations OTC new applications & contracts OTC new applications & contracts OTC loans & payments OTC loans & payments OTC
Slide 22: Contact Center Format
Contact Center Format (Orientation) Regional Offices (East Japan, Tokyo, Osaka, West Japan) Branches Regional Service Center u New applications from Mujinkun, contracts, etc. Service Center Call Center u Telephone response to new and existing customers, etc. u Contact on shortly overdue loans, recov
Slide 23: http://ir.acom.co.jp/
http://ir.acom.co.jp/
Slide 24: 7. Report on Financial Results
7. Report on Financial Results Satoru Tomimatsu Chief IR Officer
Slide 25: Key Financial Data
Key Financial Data DATA BOOK Page 3 2001/9 2002/3 (Estimate) (Millions of yen) (Millions of yen) u Other Income 916 2,200 lGains on investment in 217 529 anonymous association agreement u Other Expenses 136 200 Included in lBond issue expense operating expenses - u Extraordinary Income 1 1 u Extraor
Slide 26: Operating Income
Operating Income DATA BOOK Page 4 Financial Services Business 2001/9 2002/3 Actual YOY Estimate YOY (Millions of yen) (%) (Millions of yen) (%) u Loan Business 183,905 9.7 373,600 9.4 l Unsecured Loans 179,848 10.0 365,500 9.7 l Secured Loans 4,056 -0.7 8,100 0.8 u Credit Card Business 1,696 84.8 3,
Slide 27: Operating Expenses
Operating Expenses DATA BOOK Page 5 Other Operating Expenses 2001/9 2002/3 Actual YOY Estimate YOY (Millions of yen) (%) (Millions of yen) (%) u Personnel Costs 17,931 6.7 36,100 5.8 u Advertising and 9,315 -13.1 20,000 -1.1 Promotional Expenses u Expenses for Computer 10,093 14.2 23,900 19.1 l Syst
Slide 28: Operating Expenses
Operating Expenses DATA BOOK Page 5 Other Operating Expenses 2001/9 2002/3 Actual YOY Estimate YOY (Millions of yen) (%) (Millions of yen) (%) uInsurance Expenses 2,453 24.0 6,300 -5.2 uDepreciation Expenses 1,873 -8.6 3,900 -8.0 uTax and 3,497 3.9 6,900 4.5 Other Public Charge uOther 5,758 2.6 12,8
Slide 29: Receivables Outstanding: Unsecured Consumer Loans
Receivables Outstanding DATA BOOK Page 6 (bln yen) uUnsecured Consumer Loans 1,800 1,572.80 1,600 1,518.21 1,426.69 1,400 1,271.86 1,200 1,131.25 1,015.30 1,000 800 600 400 200 0 '98/3 '99/3 '00/3 '01/3 '01/9 '02/3 (Estimates) 29
Slide 30: Receivables Outstanding: Secured Loans
Receivables Outstanding DATA BOOK Page 6 (bln yen) uSecured Loans 80 73.85 73.20 70 67.84 68.04 66.90 66.23 60 Other 50 Loans to Enterprises 40 Real Estate Loan 30 Real Estate Card Loan 20 10 0 '98/3 '99/3 '00/3 '01/3 '01/9 '02/3 (Estimates) 30
Slide 31: Average Balance per Account
Average Balance per Account DATA BOOK Page 7 (Thousand yen) uUnsecured Consumer Loans 600 Avg. Bal/Acct 500 496 506 479 400 Initial Avg. Lending Amount 300 Initial Avg. Lending Amount 200 for Age 20s 157 165 161 136 100 126 138 0 '00/3 '01/3 '01/9 31
Slide 32: Number of New Loan Customers
Number of New Loan Customers DATA BOOK Page 7 uUnsecured Consumer Loans 500,000 476,493 450,000 452,474 442,092 427,345 400,000 300,000 230,662 200,000 100,000 0 '98/3 '99/3 '00/3 '01/3 '01/9 '02/3 (Estimate) 32
Slide 33: Number of Loan Business Outlets
Number of Loan Business Outlets DATA BOOK Page 7 2,000 1,741 1,760 1,766 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 1,237 1,234 516 509 512 521 523 532 400 200 Staffed 0 '98/3 '99/3 '00/3 '01/3 '01/9 '02/3 (Estimate) 33
Slide 34: CD and ATMs
CD and ATMs DATA BOOK Page 7 60,000 53,737 LAWSON 50,000 Loppi 38,430 City 40,000 Banks 30,000 Sales Finance, Retailers etc. 18,478 20,000 Regional Banks 10,000 Proprietary 0 '00/3 '01/3 '01/9 34
Slide 35: Loan Interest Rate
Loan Interest Rate DATA BOOK Page 8 (%) 28.0 26.52 26.02 Unsecured Consumer Loans 26.0 25.70 (25.51) 24.76 24.50 (25.08) 24.30 (24.86) 24.0 (24.08) (23.95) (23.79) 22.0 Avg. Loan Interest Rate During the FY 20.0 18.0 '98/3 '99/3 '00/3 '01/3 '01/9 '02/3 (Estimate) 35
Slide 36: Receivables Outstanding by Interest Rate
Receivables Outstanding by Interest Rate DATA BOOK Page 8 (bln yen) uUnsecured Consumer Loans 1,600 Less than 15.0% 1,400 15.0 - 18.0% 1,200 18.25 - 19.0% 20.0 - 24.82% 1,000 800 25.0 - 26.5% 600 400 27.375% 200 28.470% or more 0 '98/3 '99/3 '00/3 '01/3 '01/9 '02/3 (Estimate) 36
Slide 37: Classified Receivables Outstanding
Classified Receivables Outstanding DATA BOOK Page 8 (bln yen) uUnsecured Consumer Loans 1,600 1,400 Over 1 million yen 1,200 1,000 500,000 to 1 million yen 800 600 300,000 to 500,000 yen 400 200 Less than 300,000 yen 0 '98/3 '99/3 '00/3 '01/3 '01/9 '02/3 (Estimate) 37
Slide 38: Bad Debt Write-offs
Bad Debt Write-offs DATA BOOK Page 9 (bln yen) 80 Bad Debt Write-offs 70 (Loan Business) 720 726 3.00% 60 2.72% 2.86% 619 3.0% 2.63% 2.50% 50 543 526 2.5% 443 443 40 1.39% 2.0% 369 374 Allowance for Bad Debt 30 323 1.5% 274 20 233 1.0% Bad Debt Write-offs 10 0.5% 0 0.0% '98/3 '99/3 '00/3 '01/3 '01/9
Slide 39: Bad Debts
Bad Debts DATA BOOK Page 10 (%) 6.0 5.95 5.88 5.0 4.71 Write-offs 4.73 4.69 4.0 1.30 2.72 1.19 2.86 1.39 3.0 Bad Debts 2.0 2.53 2.63 2.31 2.59 2.61 1.0 Arrears 0.80 0.70 0.91 0.71 0.71 0.0 '99/9 '00/3 '00/9 '01/3 '01/9 Note: Loans in arrears refers to loans past due for less than three months, exclu
Slide 40: Bad Debts
Bad Debts DATA BOOK Page 10 (%) 99/9 00/3 00/9 01/3 01/9 Write-offs 1.30 2.72 1.19 2.86 1.39 Loans to bankrupt parties 0.34 0.28 0.27 0.24 0.33 Loans in arrears 0.95 0.99 1.19 1.13 1.35 Loans overdue by 3 month or more 0.09 0.04 0.16 0.03 0.03 Restructured loans 1.23 1.22 1.01 0.91 0.88 Bad Debts 2.
Slide 41: Loans in Arrears & Bad Debt Write-offs
Loans in Arrears & Bad Debt Write-offs Classified Receivable Outstanding DATA BOOK Page 10 uCustomer Accounts Comparison (2001/9) uReceivables outstanding of unsecured loan for consumer (loans in arrears included) 80.1% Less than 500,000 yen 12.9% 7.0% > 1 million yen 1.4% uLoans in arrears (more th
Slide 42: Funds Procurement
Funds Procurement DATA BOOK Page 11 (bln yen) 1,600 100% 99.7% 99.1% 98.4% 98.5% 1,400 81.7% 80.0% 88.1% Long term 80% 1,200 75.9% 76.3% 71.0% 1,000 60% 63.9% Fixed 800 45.9% Indirect 40% 600 73.2% 400 75.7% 77.0% 26.8% 20% 81.9% 24.3% 23.0% 200 90.9% 88.9% 18.1% Direct 9.1% 11.1% 0 0% Average inter
Slide 43: Credit Card Business
Credit Card Business DATA BOOK Page 12 2001/3 2001/9 2002/3 Actual Actual Estimate u No. of Contracts 752,509 905,386 1,100,000 u Card Shopping 19,157 25,591 32,600 Receivables (Millions of yen) u Revolving Receivables 16,123 21,665 26,900 (Millions of yen) u Operating Income 2,298 1,688 3,800 (Mill
Slide 44: Installment Sales Finance
Installment Sales Finance DATA BOOK Page 12 2001/3 2001/9 2002/3 Actual Actual Estimate u No. of Customer 446,217 477,918 507,000 u Installment Receivables 150,581 161,154 174,800 (Millions of yen) u Adjusted Receivables 124,046 132,923 144,000 (Millions of yen) u Operating Income 14,287 7,999 16,50
Slide 45: Loan Guarantee
Loan Guarantee DATA BOOK Page 12 2001/9 2002/3 Actual Estimate u Number of Accounts 13,378 68,700 u Receivables Outstanding 3,924 22,700 (Millions of yen) u Operating Income 62 300 (Millions of yen) 45
Slide 46: Financial Ratios
Financial Ratios DATA BOOK Page 13&14 (%) 22.0 uROE 20.0 18.0 19.2 16.0 17.8 17.4 18.3 17.7 14.0 16.1 12.0 10.0 8.0 6.0 4.0 2.0 0.0 '98/3 '99/3 '00/3 '01/3 '01/9 '02/3 (Yen) 700.00 uEPS (Estimate) 636.90 600.00 550.75 504.93 500.00 400.00 385.32 300.29 300.00 251.50 200.00 100.00 0.00 '97/3 '98/3 '9
Slide 47: 7. Questions & Answer Session
7. Questions & Answer Session
Slide 48: Earnings Release Conference, ACOM CO., LTD.
Earnings Release Conference 1st Half of Fiscal Year Ending March 2002 ACOM CO., LTD. http://ir.acom.co.jp/