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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 by television and websites including launching new TV commercial.
During the six months ended September 30, 2018, new contracts signed for unsecured loans were 105,000 (up 11.6% year on year) and loans outstanding for unsecured loan was 362.3 billion yen (up 13.5% year on year). Interest on operating unsecured loan rose steadily, showing a 16.9% increase on year on year to 24.5 billion yen.

Q2

What is the current trends for non-performing loans?

A2

Although, the amount of non-performing unsecured loans outstanding increased to 36.0 billion yen (up 24.0% year-on-year) as operating assets increased,the ratio of unsecured loans NPL stood at 9.9%, 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, the number of claims declined significantly after hitting a peak in February 2011 and the downward trend became more apparent in the current fiscal year. Interest repayment claims for the six months ended September 30, 2018, decreased 43.9% year on year, to 9,200.

Interest repayment for the six months ended September 30, 2018, decreased 46.9% year on year, to 6.1 billion yen, and the waiver of principal accompanying interest repayment declined 45.0%, to 0.8 billion yen year on year, totaling 6.9 billion yen, or a decrease of 46.7% from corresponding period of previous fiscal year.

As a result, for the second quarter of the fiscal year ending March 31, 2019, the balance of the allowances for loss on interest repayments for the AIFUL parent stood at 15.9 billion yen, while the waiver due to interest repayments was 1.4 billion yen. Therefore, the total amount of allowances related to interest repayments was 17.4 billion yen.

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 second quarter of the fiscal year ending March 31, 2019, increased 22.6 billion yen, or 77.1%, compared with the previous fiscal year-end to 51.9 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 27.9 billion yen, decreased 17.6% compared with the corresponding period of previous fiscal year. This was mainly attributable to the decline in funds due to the drop in the provision for loss on interest repayment.
(Cash flows from investing activities)
Net cash provided by investing activities stood at 2 million yen (2.1 billion yen was used in the corresponding period of previous fiscal year). This was mainly attributable to the sales of investment securities.
(Cash flows from financing activities)
Net cash provided by financing activities amounted to 50.5 billion yen, increased 50.8% 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 16.2% on a consolidated basis and 16.3% on a non-consolidated basis as of the second 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.
For the details, please refer to Corporate Governance.