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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 is working to increase the number of new contracts and the operating loan balance by improving its customer service through renewing the website and improving the convenience of smartphone websites, in addition to effective advertising mainly on television and the internet.
In the fiscal year under review, new contracts signed for unsecured loans were 197 thousand (up 8.2% year on year) and the loans outstanding was 360 billion yen (up 11.8% year- on-year). Interest on operating loans, which steadily increased 13.9% year on year to 45.8 billion yen.

Q2

What is the current trends for non-performing loans?

A2

As a benefit of the restrictions on total lending limits, non-performing loans ratio is remained at low and stable level. The amount of non-performing loans in the fiscal year ended March 31, 2018 increased by 6.0% year-on-year, to 65.0 billion yen and NPL ratio fell 0.7 point on year on year to 16.7%. The amount of non-performing unsecured loans outstanding was 33.4 billion yen (up 24.4% year-on-year) and unsecured loans NPL ratio was 9.7%.

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 fiscal year ended March 31, 2018, were decreased 40.3% year-on-year, to 25 thousand.

As a result, Interest repayment for the fiscal year ended March 31, 2018, decreased 21.4% year-on-year, to 21.2 billion yen, and the waiver of principal accompanying interest repayment declined 29.3%, to 2.6 billion yen year-on-year, totaling 23.8 billion yen, or a decrease of 22.3% from the previous fiscal year.

On the other hand, the company posted 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, for the fiscal year ended March 31, 2018 at AIFUL parent, the balance of the allowance for losses on interest repayment stood at 22.1 billion yen, and that of the waiver accompanying interest repayment was 2.2 billion yen, registering 24.3 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 fiscal year ended March 31, 2018, decreased by 4.2 billion yen, or 12.6%, compared with the previous fiscal year-end to 29.3 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 70.2 billion yen, increased 37.1% compared with previous fiscal year. This was mainly attributable to the decline in funds reflecting an increase in total receivable outstanding such as operating loans.
(Cash flows from investing activities)
Net cash used for investing activities stood at 3.5 billion yen, decreased 42.7% compared with the previous fiscal year. This was mainly attributable to the purchase of property, plant and equipment, and intangible assets.
(Cash flows from financing activities)
Net cash provided by financing activities amounted to 67.5 billion yen, increased 32.3% compared with the 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 16.7% on a consolidated basis and 17.1% on a non-consolidated basis at the fiscal year ended March 31, 2018.

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.