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Financial Information

Q1

Please provide an overview of financial results in the unsecured loans business.

Q2

What is the current trends for non-performing loans?

Q3

What is the current demand for interest repayment?

Q4

How is the cash flow situation?

Q5

What is the current equity ratio?

Q6

What are AIFUL's current credit ratings?

Q7

Can you describe your strategies to strengthen corporate governance?



Q1

Please provide an overview of financial results in the unsecured loans business.

A1

In the unsecured loan segment, 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 on television and the internet including launching new TV commercial.
In the first quarter of the fiscal year ending March 31, 2019 under review, new contracts signed for unsecured loans were 53 thousand (up 21.8% year on year) and loans outstanding for unsecured loan was 352.2 billion yen (up 13.7% year- on-year). Interest on operating unsecured loans, which steadily increased 16.8% year on year to 11.9 billion yen.

Q2

What is the current trends for non-performing loans?

A2

Although, the amount of amount of non-performing unsecured loans outstanding increased to 34.4 billion yen (up 24.9% year-on-year) as operating assets increased, the ratio of unsecured loans NPL stood at 9.7%, remaining flat as a benefit of the restrictions on total lending limits.

Q3

What is the current demand for interest repayment?

A3

In terms of interest repayment claims at AIFUL, ongoing caution is warranted even though the number of claims declined significantly after hitting a peak in February 2011 and also the downward trend became more apparent in the current fiscal year. Interest repayment claims for the first quarter of the fiscal year ending March 31, 2019, decreased 56.4% year-on-year, to 4,400.

As a result, for the first quarter of the fiscal year ending March 31, 2019 at AIFUL parent, the balance of the allowance for losses on interest repayment stood at 19.2 billion yen, and that of the waiver accompanying interest repayment was 1.7 billion yen, registering 20.9 billion yen for the total amount of allowances associated with interest repayment.

For the detailed information about interest repayment claims, please refer to the "Annual Report 2009".

Q4

How is the cash flow situation?

A4

Cash and cash equivalents ("funds") for the first quarter of the fiscal year ending March 31, 2019, decreased by 1.5 billion yen, or 5.4%, compared with the previous fiscal year-end to 27.7 billion yen. The situation of each category and the contributing factors are as follows.

(Cash flows from operating activities)
Net cash used for operating activities stood at 20.6 billion yen, increased 2.8% compared with the corresponding period of previous fiscal year. This was mainly attributable to the decline in funds due to an increase in total receivable outstanding including operating loans and the decline in funds due to the drop in the allowance for losses on interest repayment.
(Cash flows from investing activities)
Net cash used for investing activities stood at 0.3 billion yen, decreased 77.0% compared with the corresponding period of previous fiscal year. This was mainly attributable to the purchase of property, plant and equipment.
(Cash flows from financing activities)
Net cash provided by financing activities amounted to 19.3 billion yen, decreased 46.3% compared with the corresponding period of previous fiscal year. This was mainly attributable to an increase in the loans payable.

Q5

What is the current equity ratio?

A5

The AIFUL Group's equity ratio stood at 16.6% on a consolidated basis and 16.9% on a non-consolidated basis at the first quarter of the fiscal year ending March 31, 2019.

Q6

What are AIFUL's current credit ratings?

A6

Please refer to Corporate Bonds/Rating.

Q7

Can you describe your strategies to strengthen corporate governance?

A7

Under a corporate philosophy of "Earn the trust of society through corporate activity based in integrity" the AIFUL Group recognizes that the important objective of its corporate governance is to become a company that is trusted by shareholders and society through its contribution to socioeconomic development, and to achieve corporate management that offers transparency, fairness, and efficiency, based on corporate activities that observe compliance.
For the details, please refer to Corporate Governance.