FY March 2024: 4Q Speech Script and Q&A

Earnings Release Presentation

Financial Results for the Fiscal Year Ended March 2024

May 13, 2024

I'd like to extend my heartfelt appreciation to all of you for your kind support to and understanding of our company and attending the presentation on our financial results out of your busy schedules.

Please go to page 3.

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∎ Disclaimer	∎ Notation
The figures contained in this presentation material with	L.C. Business	Loan and Credit Card Business
respect to ACOM Groupʼs plans and strategies and other	MUCG	MU Credit Guarantee Co., LTD.
statements that are not historical facts are based on	yoy	year on year percentage point
information available at the date of announcement of this	ytd	year to date percentage point
(E)	estimates
presentation material. However, there are some potential	EB、EASY BUY	EASY BUY Public Company Limited
risk factors in the Groupʼs business management.	ACF	ACOM CONSUMER FINANCE CORPORATION
Therefore, the actual results may differ from the forecast.
The trend of requests for interest repayment is also highly
uncertain, due to its sensitivity to changes in external	∎ Reference
environmental changes. The Group may have to make	ACOM. CO., LTD.
additional provision for loss on interest repayment.	Public & Investor Relations Office
Actual results may differ from forecast values due to	[phone]

various risk factors, not limited to those mentioned above.	[e-mail]

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Contents

01 02

FY March 2024		FY March 2024
Financial Results	Supplemental
Summary		information
Consolidated Financial	4	Loan and Credit Card Business	26
Summary		Guarantee Business	31
Dividend Status	6
Overseas Financial Business	35
Loan and Credit Card Business	7	Interest Repayment	39
Guarantee Business	15	Provision for Bad Debts	41
Financial Expenses	43
Overseas Financial Business	17
Human Resources	20
External Evaluation	21
Annual Forecast	23
For the FY March 2025

Appendix

Market Volume	46
Annual Forecast	48
For the FY March 2025
Interest Repayment	50
Background to Borrowing	53
Yardstick of Return on	54
Assets (ROA) by Business
Segments
Vision and Mid-term	55
Management Policy
Mid-term Management	57
Plan

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I will go over item number 1 and give you a summary of our financial results for FY ended March 2024. Later, Mr. Okamoto, Chief PR and IR Officer, will go over item number 2 and give you supplementary information on interest repayment, provision for bad debt and financial expenses.

Please go to page 4.

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Consolidated Financial Summary (Business Scale)

• Consolidated outstanding Balance increased by 1.0% compared to the Estimates (up 7.5% yoy) to ¥2,531.0 bn, owing to favorable trend in domestic borrowing by new and existing customers and the impact of the depreciation of yen against baht.
• Achieved the target of outstanding balance of ¥2.5 trillion in the mid-term plan one year ahead.

L.C.

Guarantee

Overseas

Others

yoy

Consolidated

¥2,531.0bn

Business

Business

Financial

7.5%

Achieved

4.9%

Receivables

Business

(Billions of yen)

0.4%

the target

Outstanding

yoy＋7.5%

2,505.4 2,531.0

of the

compared to E +1.0%

219.4

mid-term

L.C. Business

¥1,001.3bn

one year

2,244.9

2,354.5

233.1

243.2

plan

192.7

Ahead!

yoy＋9.5%

1,276.0 1,278.2

compared to E +1.3%

1,173.0

1,212.8

¥1,278.2bn

Business

Guarantee

yoy＋5.4%

988.1

1,001.3

compared to E +0.2%

871.1

914.5

Financial

¥243.2bn

Overseas

Business

yoy+10.8%

22/3

23/3

24/3(E)

24/3

compared to E +4.4%

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Firstly, I will give you an overview of consolidated results.

Consolidated receivables, shown on the right, grew 7.5% to 2 trillion and 531 billion yen. We achieved the receivables' target of 2.5 trillion yen in the mid-term business plan ending FY March 2025 one year ahead of schedule.

Looking at receivables by business line, receivables grew 9.5% to 1 trillion and 1.3 billion yen in the loan and credit card business, grew 5.4% to 1 trillion and 278.2 billion yen in the guarantee business and by 10.8% to

243.2 billion yen in the international financial business. Two factors are behind the growth.

Firstly, the initiatives we put in place to effectively capture customers' loan demand helped new customer acquisition and additional borrowing among existing customers both in the loan and credit card business and the guarantee business in Japan. Secondly, the weak yen helped to boost receivables in the international business.

Please move on to page 5.

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Consolidated Financial Summary (Business Performance)

• Operating Revenue increased by 7.6% yoy (up 0.6% compared to E) to 294.7 bn, owing to the impact of the depreciation of yen in addition to the expansion of business scale.
• Operating Profit decreased by 1.1% yoy (up 2.2% compared to E) to ¥86.3 bn due to the increase of Provision for Bad Debts and advertising expenses.
• Profit attributable to owners of parent decreased by 3.3% yoy (up 0.4% compared to E) to ¥53.0 bn, mainly due to increase in income taxes-current.

Operating Revenue

Operating Profit

¥294.7bn

Consolidatedyoy＋7.6% compared to E ＋0.6%

¥86.3bn

Consolidatedyoy -1.1% compared to E +2.2%

	L.C. Business	¥156.0bn			L.C. Business	¥	bn
	yoy＋7.5%			41.7
						yoy +2.7%
		compared to E +0.5%
						yoy -11.6%
		¥70.7bn			Guarantee Business
	Guarantee Business				¥22.6bn
	yoy＋6.8%
				Overseas Financial	¥22.3bn
		compared to E -0.2%
				Business
	Overseas Financial	¥61.8bn				yoy＋13.7%
			Profit
	Business	yoy＋9.5%				yoy -3.3%
		compared to E ＋1.5%		Attributable to	¥53.0bn ( compared to E +0.4% )
				Owners of Parent

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Consolidated operating revenue, shown on the left, grew 7.6% to 294.7 billion yen thanks mainly to receivables' growth.

Looking at operating revenue by business segment, operating revenue in the loan and credit card business increased by 7.5% to 156 billion yen. Operating revenue in the guarantee business benefited from receivables' growth and a regular fee review and grew 6.8% to 70.7 billion yen. Thanks to receivables' growth of EASY BUY in Thailand and the weak yen, operating revenue in the overseas financial business increased 9.5% to 61.8 billion yen.

Operating profit, shown on the right, dropped by 1.1% to 86.3 billion yen. Looking at operating profit by business line, operating profit in the guarantee business came down. With a recovery of new customer acquisition, the proportion of newer borrowers increased. It will take some time before transactions with these customers become more stable. In the meantime, provision for bad debt rises temporarily. While the same goes for the loan business, operating profit grew by 2.7% with operating revenue growth of 7.5% because of the size of its receivables and lending rates.

Please turn to page 6.

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Dividend Status

• Basic Policy on Capital Policy︓Maintain and improve financial soundness and increase shareholder returns
• Basic Policy on Dividend Payment︓Expand shareholder returns

based on high profitability and appropriate capital adequacy

Our Target in FY March 2025

FY March 2024

(Mid-Term Management Plan) Return to Shareholders

Shareholdersʼ Profitability

Equity

ROE	︓ around 10%
Shareholdersʼ	︓ around 25%
Equity Ratio*¹
Dividend	Not decided
per Share	︓ Aim for stable amount and
Continuous payments of dividend
Dividend	︓ around 35%
Pay-out Ratio

Profitability		ROE 8.8%
Operating Revenue︓¥294.7 bn compared to E +0.6％
Operating Profit	︓ ¥86.3 bn compared to E +2.2%
Shareholdersʼ	Shareholders Equity Ratio*¹ 23.3%
equity

Progress towards the target 25%

Return to	Interim Dividend ¥6 Year-end Dividend ¥6
Shareholders

Business expansion exceeding our estimates and

strong demands from new customers, Year-end dividend is ¥6*² per share

and annual dividend is 12 per share as forecasted.

Dividend payout ratio was 35.4％

*1	The equity	ratio, calculated by adding the balance of credit guarantees to total	consolidated assets.	6
*2	The year-end dividend for the fiscal year ended March 31, 2024 is subject to approval at the annual shareholders' meeting to be held in June 2024.

Next, I would like to touch on dividends.

As shown at the top, our basic capital policy is to maintain and improve financial health and offer good shareholder return. Our dividend policy is to improve shareholder return supported by high profitability and appropriate shareholders' equity.

As shown on the left, we target around 10% ROE, equity to asset of around 25% and a dividend payout ratio of about 35% in FY ending March 2025 in the current mid-term business plan.

Turning to the righthand side of the page, please find where those numbers were at the end of March 2024.

As shown at the top, ROE, which is a metric for profitability, stood at 8.8%. As shown in the center, equity to asset, which stood at 23.3%, is on track to get to the target of 25%.

As for shareholder return, shown at the bottom, despite reduced profit, we have kept a 6 yen per share dividend for second-half with an annual dividend of 12 yen, which works out to a dividend payout ratio of 35.4%. Strong receivables' growth and new customer acquisition are behind our decision. I will come back to dividend forecast for FY ending March 2025 later.

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Loan and Credit Card Business｜Business Environment

External Environment

The economy recoveries

gradually

Japanese socio-economic activities are returning to normal

against a backdrop of COVID-19 being classified

as a Category V Infectious Disease and various government policies, resulting in economic conditions showing signs of gradual recovery.

Economy in Japan is revitalized compared to pre-COVID-19.

Strong demands for funds

In the non-bank sector, demand for funds is

booming, including from those who have not had

access to consumer finance in the past.

Operating Strategies

Acquisition of new

customers

We invested efficiently in advertising while keeping acquisition costs low, resulting in favorable acquisitions of new customers.

Sales to existing customers

Receivables outstanding has increased higher than estimates, mainly owing to the review of credit screenings in connection with the active acquisition of a certificate of income.

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Now, let's review how each business performed.

Firstly, talking of an operating environment in the loan and credit card business, with COVID-19 recategorized as a Category 5 infectious disease and normalization of social and economic activities helped by various policies, a moderate economic recovery continues.

While increasing tensions in the international situation, monetary tightening due to a high inflation and other factors could dampen the economy, the domestic economy seems more vibrant than pre-pandemic. Loan demand is strong in the nonbank market as those who didn't take out card loans before have become customers.

Turning to the righthand side of the page, with strong loan demand, we have invested in advertisements efficiently and gained new accounts while keeping per customer acquisition cost low. I will come back to the number of new customers and advertising and promotional spend or A & P spend later in my presentation.

On top of that, we have revisited credit screening among existing borrowers by trying aggressively to get their income certificates, which helped to grow receivables more than expected.

Pease move on to page 8.

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Loan and Credit Card Business｜Business Scale

		Loan		Credit card		yoy (Billions of yen)	9.5%	Reached
3.5%			1.0%	5.0%		¥ 1trillion
915.8	-5.8%			914.5	1,001.3	988.1
		871.1	122.3
862.8		121.3
75.0	103.5
78.7	87.9
840.8	784.0	783.1	810.9	879.0		866.8
20/3	21/3	22/3	23/3	24/3		24/3(E)

Owing to strong demands for funds and various sales measures,

both Loan and Credit card business expanded to a scale exceeding those before the COVID-19 disaster,

and reached ¥1 trillion in outstanding balance.

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Please find the evolution of loan and credit card receivables on this page. Loan receivables for FY ended March 2024, illustrated by the second bar from the right, increased to 879 billion yen, exceeding the pre-pandemic level of Marh 2020. Combined receivables of loan and credit card operations showed very strong growth with 1 trillion and 1.3 billion yen, topping the 1 trillion yen mark.

Please turn to page 9 for the number of new accounts.

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Loan and Credit Card Business｜No. of New Customers

No. of New Customers		yoy	(Thousands)

29.8% 32.6%

2.7%

-31.3%

400

Compared to E

39.0% +30,000cases

430 -12.9%

375

261

309

233

179

20/3

21/3

22/3

23/3

24/3(E)

24/3

25/3(E)

No. of New Customers reached 430 thousands. It exceeded the estimates of 400 thousands.

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Post-pandemic, as with receivables, the number of new accounts showed a strong trend. In fact, we revised up our forecast to 400 thousand from the initial target of 300 thousand in November. The actual number of new customers was even higher than the revised target with a 39% increase to 430 thousand. The number of new accounts topped 400 thousand for the first time in 21 years since FY ended March 2003.

We forecast the number of new accounts will come down YoY to 375 thousand for FY ending March 2025. We expect loan demand will remain strong till first quarter and gradually go back to its pre-pandemic level in second quarter and beyond.

Please go to page 10 for advertising and promotional spend or A & P spend.

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Loan and Credit Card Business｜Advertising Expenses(ACOM)

					Annual											Quarterly
			Adv. Expenses				(Billions of yen)			Adv. Expenses		(Billions of yen)
			Acquisition Costs per New Customers (Thousands of yen)
					Acquisition Costs per New Customers	(Thousand of yen)
	48.1	61.6	64.9	57.3	45.4
										52.4
						177								46.7	48.1
					151												44.0
						195	198
	126
	110
														49	50	54	46	47
	20/3	21/3	22/3	23/3	24/3	24/3(E)			4Q	1Q	2Q	3Q	4Q
			Owing to advertising efficiently, advertising expenses were lower than estimates.
					Since new customers are the stable source of future revenue,

we view advertising expenses as an upfront investment for the future.	10

Turning to the lefthand side of the page, with strong new customer acquisition, A & P spend totaled 19.5 billion yen in FY ended March 2024. While it increased 1.7 billion yen YoY from 17.7 billion yen, it was around 300 million yen less than the target of 19.8 billion yen as acquisition cost per account trended down with good control in place, as is illustrated by the solid line.

Please find a quarterly trend of A & P spend and per customer acquisition cost. Acquisition cost, which remained low throughout the year, trended down as we continued to review online ads and advertising agencies cooperated and helped us run ads at low cost.

On the other hand, with a drop in the number of new customers in the market, acquisition cost per new account could gradually rise as pent-up demand becomes more stable. We will continue to monitor a future trend.

Please turn to page 11.

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