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Important FAQ

Q1

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

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 fiscal year ended March 31, 2018.

A1

In the consolidated fiscal year ended March 31, 2018, the AIFUL Group’s consolidated operating revenue, rose 26.2% compared with the previous fiscal year to 115.3 billion yen. The principal components were 56.3 billion yen in interest on loans (up 17.6% year on year), 16.0 billion yen in revenue from the credit card business (up 3.9% year on year), and 12.9 billion yen in revenue from the credit guarantee business (up 4.0% year on year). Also the collection from purchased receivable were 2.0 billion yen (down 1.1% year on year), the recoveries of charged off claims were 6.4 billion yen (up 12.9% year to year), sales of software development was 12.8 billion yen.
Operating expenses increased 28.4 billion yen, or 33.7%, compared with the previous fiscal year to 112.8 billion yen. Due to the company posted 11.2 billion yen cost of sales for orders for the system development above and 8.6 billion yen expenses related to interest repayment because the Company made an additional provision for loss on interest repayment of 12.3 billion yen in light of the current situation of interest repayment and the reversal of allowance for doubtful accounts associated with interest repayment of 3.7 billion yen.

As a result of the above factors, for the consolidated fiscal year under review, the AIFUL Group recorded an operating profit of 2.4 billion yen (down 64.4% year on year), ordinary profit of 2.8 billion yen (down 61.8% year on year), and profit attributable to owners of parent of 3.9 billion yen (down 45.6% year on year), reflecting a gain on reversal of shares acquisition rights of 0.7 billion yen as extraordinary income and a loss attributable to non-controlling interests of 1.0 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. Profit 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, 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, while dealing with interest repayment claims as the principal management issue, the AIFUL Group is united in its efforts to diversify the financial business and increase operating assets to bolster its revenue base. The Group is going to work to diversify funding channels to strengthen its financial base and improve business efficiency across the Group.

In the fiscal year ending March 31, 2019, AIFUL Group expects to operating revenue of 115.4 billion yen (up 0.0% year on year), operating profit of 16.4 billion yen (558.1% year on year), ordinary profit of 16.9 billion yen (up 498.7% year on year), and profit attributable to owners of parent of 15.6 billion yen (294.1% year on year).
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. Distributable amount remains decline. For this reason, the Group sincerely regrets that it will not pay a dividend for the fiscal year under review or for the next fiscal year.

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."