Consolidated Financial Results for the Fiscal Year ended March Copyright (C) 2015 J TRUST Co.,Ltd. All Rights Reserved. 8

Transcription

1 Consolidated Financial Results for the Fiscal Year ended March

2 FY Financial Highlights - Posted record high operating revenue of 63.2 billion yen Reported operating loss of 5.2 billion yen, ordinary loss of 2.3 billion yen and net income of 10.1 billion yen Temporary expenses at Chinae Savings Bank and the delay in acquisitions of SC Savings Bank and SC Capital put downward pressure on income Unit: 100 million yen FY 2014 FY (52) (23) 111 Operating revenue Operating income (loss) Ordinary income (loss) Net income 9

3 FY Factors Behind Change in Operating Revenue - Operating revenue grew by 1.3 billion yen to 63.2 billion yen Assumption of loan business by Chinae Savings Bank increased receivables and an increase in balance of new receivables boosted banking business revenue by 2 billion yen Interest on loans increased by 1.9 billion yen due to the consolidation of KJI Consumer Finance and HICAPITAL Other operating revenue grew by 2.2 billion yen due to the sale of LCD Global Investments shares (1.1 billion yen) and consolidation of new subsidiaries including Japan Care Welfare Group Unit:100 million yen FY 2014 FY 2015 Banking business revenue Interest on loans Other operating revenue Collection from purchased receivable Sales on amusement business Installment payment paying for commission Other financial revenue Commission fee Interest on deposits Discount revenue Sales on real estate business 10

4 FY Factors Behind Change in Operating Revenue - Operating revenue rose by 1.3 billion yen to 63.2 billion yen Installment payment paying for commission declined by 2.7 billion yen due to the transfer of KC brand Sales on amusement business fell by 1.5 billion yen since consumption tax hike dampened consumer spending Other financial revenue declined by 2 billion yen with decrease in balance at Nihon Hoshou Positive factors absorbed negative factors and we achieved record high results Unit:100 million yen FY 2014 FY 2015 Banking business revenue Interest on loans Other operating revenue Collection from purchased receivable Sales on amusement business Installment payment paying for commission Other financial revenue Commission fee Interest on deposits Discount revenue Sales on real estate business 11

5 FY Factors Behind Change in Operating Income - Operating income decreased by 18.9 billion yen Operating expenses rose by 2.9 billion yen due to loss on sales of NPL of 1.3 billion yen at Chinae Savings Bank and cost of sales of 1.5 billion yen at Japan Care Welfare Group, etc. Expenses related to bad debts climbed by 14.3 billion yen by making KJI Consumer Finance and HICAPITAL subsidiaries, increase in loan balance and accelerated disposal of NPL at Chinae Savings Bank Operating income billion yen Operating revenue +1.3 billion yen Operating expenses billion yen Personnel expenses (0.2) billion yen Other SG & A (2.8) billion yen FY 2014 (Unit:100 million yen) Factors behind increase/decrease in operating expenses Banking business expenses 14 Other operating expenses 15 Cost of sales-real estate 9 Cost of sales on amusement business -10 Factors behind increase/decrease in SG & A expenses Commission fee 3 Depreciation at KC Card 4 Advertising expenses at Chinae Savings Bank 14 Depreciation at Chinae Savings Bank 3 Expenses related to bad debts (14.3) billion yen FY 2015 Operating income (5.2) billion yen Factors behind increase/decrease in expenses related to bad debts Expenses related to bad debts 119 Provision for loss on interest repayment at KC Card 24 12

6 FY Factors Behind Change in Ordinary Income and Net Income - Ordinary income decreased by 15.6 billion yen Did not incur share issuance cost (1.1 billion yen) in relation to rights offering which was posted in FY 2014 Posted foreign exchange gains of 2.8 billion yen Operating income declined by 18.9 billion yen Net income decreased by 1 billion yen Recorded gain on bargain purchase under extraordinary income and it led to increase in extraordinary income by 13.5 billion yen Unit:100 million yen FY 2014 FY 2015 Change Operating income 137 (52) (189) Non-operating income Non-operating expenses 14 3 (11) Ordinary income 133 (23) (156) Extraordinary income Extraordinary losses (15) Income taxes, etc Net income (10) 13

7 FY Difference between Forecast and Actual Result Recorded 8.6 billion yen as temporary expenses Provision of allowance for doubtful accounts grew due to proactive NPL disposal at Chinae Savings Bank Operating revenue decreased owing to the delay in share acquisitions of SC Savings Bank and SC Capital Operating expenses increased due to provision for loss on interest repayment at KC Card and initial costs at three new subsidiaries Excluding temporary expenses, operating income would have been 1.9 billion yen 2.6 billion yen Forecast for operating income Temporary expenses of 8.6 billion yen 4.2 billion yen Increase in provision of allowance for doubtful accounts Additional provision of allowance for doubtful accounts at Chinae Savings Bank Decrease due to the delay in share acquisitions of SC Savings Bank and SC Capital 3.4 billion yen Decrease in operating revenue Provision for loss on interest repayment at KC Card 0.7 billion yen Initial costs at new subsidiaries 0.3 billion yen Increase in operating expenses Decrease in operating revenue at domestic subsidiaries Cost reduction at domestic subsidiaries Sale of LCD shares 1.6 billion yen 0.7 billion yen Positive factors Actual result for FY 2015 (5.2) billion yen 14

8 FY Balance by Product in Financial Business - Balance of accounts receivable - operating loans increased by 16.1 billion yen yoy Loans by banking business grew by billion yen yoy Balance of advances paid-installment fell by 38.4 billion yen yoy Credit guarantee balance decreased by 4.1 billion yen yoy Unit:100 million yen 2,500 2,000 1,500 1, End of FY 2014 End of FY 2015 Positive factor Making JT Capital our subsidiary Negative factor Transfer of receivables to Chinae Savings Bank Commercial notes Accounts receivable - operating loans (domestic & overseas) 2,244 Loans by banking business 397 Breakdown of loans by banking business Chinae Savings Bank :120.3 billion yen JT Savings Bank : 28.1 billion yen Bank Mutiara : 76 billion yen Negative factor Decrease in balance due to sale of KC Card brand Advances paidinstallment Purchased receivables Negative factor Transfer of credit guarantee obligations at KC Card Positive factor Strong performance of new credit guarantee products at Nihon Hoshou Credit guarantee balance 15

9 FY Change in Total Assets - Total assets rose by 206 billion yen to billion yen yoy Assets increased through proactive implementation of M&A and purchase of receivables using funds raised through rights offering Going forward, we expect to generate stable profit from operating assets Unit: 100 million yen 6,000 Liabilities Net assets 5,000 4,000 3,000 2,000 3,347 1,505 5,407 3,458 1,000 1,842 1,948 0 End of FY 2014 End of FY