IR-FAQ

Important FAQ  | Corporate Information  | Financial Information  | Stock Information

Important FAQ

Q1

Please give us an overview of your financial results for the second quarter of fiscal year ending March 31, 2019.

Q2

Please give us a consolidated outlook for the fiscal year ending March 31, 2019.

Q3

Please give us your view on dividends.



Q1

Please give us an overview of your financial results for the second quarter of fiscal year ending March 31, 2019.

A1

The AIFUL Group’s consolidated operating revenue for the six months ended September 30, 2018, rose 14.6% compared with the corresponding period of the previous fiscal year, to 56.4 billion yen. The principal components were 32.1 billion yen in interest on operating loans (up 19.3% year on year), 7.8 billion yen in revenue from the credit card business (up 0.6% year on year) and 6.7 billion yen in revenue from the credit guarantee business (up 5.2% year on year). Also, the collection from purchased receivable was 0.9 billion yen (down 3.2% year on year) and the recoveries of written off claims were 3.1 billion yen (up 4.7% year on year).
Operating expenses increased 4.5 billion, or 9.7%, compared with the corresponding period of the previous fiscal year, to 51.6 billion yen, chiefly due to 2.9 billion yen, or 22.7% increase of provision for allowance for doubtful accounts compared with the corresponding period of the previous fiscal year, to 16.0 billion yen.

As a result, AIFUL Group posted operating profit of 4.7 billion yen (up 121.4% year on year) and ordinary profit of 5.4 billion yen (up 126.8% year on year). Profit attributable to owners of parent stood at 5.1 billion yen (up 52.5% year on year), reflecting a loss attributable to non-controlling interests of 0.2 billion yen.

Q2

Please give us a consolidated outlook for the fiscal year ending March 31, 2019.

A2

In the industry to which the AIFUL Group belongs, the number of new contracts at major players remained stable, and the operating loan balance increased moderately. On the other hand, interest repayment claims, industry’s biggest risk, still require close monitoring even though they have declined significantly from their peak and the downward trend became more apparent in current fiscal year.

In this environment, the AIFUL Group will continue to respond to interest repayment claims and at the same time work on the expansion of operating assets as a whole. Also, the Group will endeavor to diversity the finance business and will place emphasis on the balance of "safety," "profitability" and "growth" in business management.

In the fiscal year ending March 31, 2019, AIFUL Group expects operating revenue to be 115.3 billion yen (down 0.1% year on year), operating profit to be 15.5 billion yen (up 522.0% year on year), ordinary profit to be 16.1 billion yen (up 470.3% year on year), and profit attributable to owners of parent to be 15.0 billion yen (up 279.0% year on year), in light of the business results in the current second quarter, on a consolidated basis.
However, in the business environment that surrounds the Company, there are various risks and, in particular, the trends of claims forinterest repayments remain uncertain. Therefore, the final results may differ from this forecasts.

Q3

Please give us your view on dividends.

A3

The return of profits to shareholders is a management priority at the AIFUL Group. The Group's basic policy calls for a consistent return of profits in line with business results. The Group aims to maximize shareholder returns and shareholder value while simultaneously securing stable internal reserves through medium to long-term profit growth.
However, the demand for funds for interest repayments remains heavy and severe. Distributable amount remains decline. For this reason, the Group sincerely regrets that it will not pay a dividend for the fiscal year under review.

The AIFUL Group has been dealing with the principal management issue of interest repayment claims. At the same time, it is taking measures to diversify the financial business and increase operating assets to bolster its revenue base, and also work to diversify funding channels. The Group is also determined to return to the basic policy outlined above by improving its financial position and profitability.
The AIFUL Group asks all of its shareholders for their understanding and cooperation in these endeavors.

AIFUL has adopted the following provisions in its Articles of Incorporation: "The Company may determine dividends of surplus, etc. with a resolution of the Board of Directors pursuant to the provisions of Article 459, Paragraph 1 of the Companies Act" and "the Company may pay interim dividends with a resolution of the Board of Directors with September 30 each year as the record date."