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Q1

Could you explain AIFUL’s strategy in unsecured loans business?

Q2

Can you explain the credit guarantee business?



Q1

Could you explain AIFUL’s strategy in unsecured loans business?

A1

In the consumer finance industry, 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, AIFUL made effort to increase the number of new contracts and the operating loan balance by improving its customer service such as starting a cardless cash loan service, and effective advertising mainly by television and websites including launching new TV commercial.

As a result, during the six months ended September 30, 2018, the number of new contracts increased by 11.6% to 106,000. Also, AIFUL parent’s operating loan outstanding (managed asset based) increased 12.3% on year on year basis to 380.0 billion yen.
Going forward, the consumer finance business will continue to play a central role in the AIFUL Group.

Q2

Can you explain the credit guarantee business?

A2

In the credit guarantee business, the partner financial institution sells loan products to customers and also functions as the point of contact for these customers, and consumer finance companies provide services to the partner ranging from credit screening to loan guarantee. For consumer finance companies, this business enable to effectively utilize the credit scoring expertise that they possess without using their own funds.

The AIFUL Group provides the guarantee service of unsecured personal loans and products to guarantee business loans, taking advantage of its credit knowhow and "Business property loans," the strengths of the Company to lead to product sales.

As a result, in the second quarter of the fiscal year ending March 31, 2019, the balance of credit guarantees for individuals for the entire Group increased 13.4% year on year, to 80.4 billion yen. The balance of credit guarantees for business operators rose 12.8% year on year, to 12.2 billion yen. The total balance for credit guarantees moved 13.3% higher year on year, to 92.7 billion yen. Going forward, we will continue to aim to increase our tie-up financial institutions numbers and guarantee balance by utilizing our strengths.