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Important FAQ

Q1

Please give us an overview of your financial results for the Second quarter of fiscal year ending March 31, 2018.

Q2

Please give us a consolidated outlook for the fiscal year ending March 31, 2018.

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, 2018.

A1

The AIFUL Group’s consolidated operating revenue for the second quarter of fiscal year ending March 31, 2018 rose 8.9% compared with the corresponding period of the previous fiscal year, to 49.2 billion yen. The principal components were 26.9 billion yen in interest on loans (up 15.6% year on year), 7.8 billion yen in revenue from the credit card business (up 4.5% year on year) and 6.4 billion yen in revenue from the credit guarantee business (up 3.1% year on year). Also, the collection from purchased receivables were 0.9 billion yen (down 31.9% year on year) and the recovery of loans previously charged off were 3.0 billion yen (up 4.6% year on year).
Operating expenses increased by 4.5 billion, or 10.8%, compared with the corresponding period of the previous fiscal year, to 47.1 billion yen, chiefly due to 2.4 billion yen, or 22.7% increase of provision for allowance for doubtful accounts, compared with the corresponding period of the previous fiscal year, to 13.0 billion yen.

As a result, AIFUL posted operating income of 2.1 billion yen (down 20.8% year on year) and ordinary income of 2.3 billion yen (down 18.0% year on year). Net income attributable to owners of parent stood at 3.4 billion yen (up 17.3% year on year), reflecting a gain on reversal of subscription rights to shares of 0.7 billion yen as extraordinary income and a loss attributable to non-controlling interests of 0.4 billion yen.

AIRA & AIFUL Public Company Limited, which was an unconsolidated subsidiary providing consumer financing in Thailand, is included in the scope of consolidation from the first quarter under review due to an increase in its importance. Net income attributable to owners of parent is affected by income attributable to AIFUL’s equity in AIRA & AIFUL Public Company Limited.

Q2

Please give us a consolidated outlook for the fiscal year ending March 31, 2018.

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, while dealing with interest repayment claims as the principal management issue, the AIFUL Group is united in its efforts to increase the number of new contracts and the operating loan balance to bolster its revenue base. The Group is also working to diversify funding channels to strengthen its financial base and improve business efficiency across the Group.

In the fiscal year ending March 31, 2018, AIFUL Group expects to operating revenue of 1,037 billion yen (up 13.4% year on year), operating income of 880 billion yen (25.6% year on year), ordinary income of 91 billion yen (up 23.0% year on year), and net income attributable to owners of parent of 100 billion yen (37.4% year on year), in light of 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 for interest repayments remain uncertain. As a result, the final results may differ from the forecasts.
However, in the business environment that surrounds the Company, there are various risks and, in particular, the trends of claims for interest repayments remain uncertain. As a result, the final results may differ from the 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. For this reason, the Group sincerely regrets that it will not pay a dividend for the fiscal year ending March 31, 2018.

The entire AIFUL Group is working to expand sales assets, making efforts to increase the number of new contracts and the operating loan balance while addressing the principal management issue of interest repayment claims. The AIFUL Group will strive to return to the previously described basic policy by improving its financial strength and profitability.
The Group continues to ask all stakeholders for their understanding and support in helping to revitalize the business of the Group.

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."