Corporate Philosophy
Earn the trust of society through corporate activity
based in integrity
We defined our vision, mission, and value for embodying our corporate philosophy.
The AIFUL Group has upheld the corporate philosophy: "Earn the trust of society through corporate activity based in integrity" as an unalterable underlying philosophy, and in April 2021, we defined our vision, mission, and value as concrete goals suited for the present age for redeveloping the system of our philosophy.
VISION MISSION VALUE
For realizing a society where each person can play an active role
Based on our corporate philosophy: "Earn the trust of society through corporate activity based in integrity" and
our vision: "For Colorful Life: To a society in which your individuality flourishes," and in order to create a future in which everyone can achieve ideal selves, the AIFUL Group supports the Sustainable Development Goals (SDGs) and aims to "realize a sustainable society" and "attain the growth of the Group."
To a society in which your individuality flourishes
We respect the characteristics | Let's go beyond the expectations | Let's create a better tomorrow. |
of each other. | of customers. |
Sincerity | Effort | Trust | Gratefulness |
Contents
Year-on-Year Summary ……………………………………………………………………………………………… 2
Our History……………………………………………………………………………………………………………… 4
To Our Investors and Shareholders ……………………………………………………………………………… 6
Initiatives to Create Corporate Value …………………………………………………………………………… 10
Forte and Features of AIFUL ……………………………………………………………………………………… 12
AIFUL Group Business Overview ………………………………………………………………………………… 14
Sustainability of the AIFUL Group ……………………………………………………………………………… 24
Corporate Gevernance ……………………………………………………………………………………………… 30
Management …………………………………………………………………………………………………………… 36
Financial Report ……………………………………………………………………………………………………… 37
Six-Year Summary …………………………………………………………………………………………………… 38
Business Data ……………………………………………………………………………………………………… 40
Financial Report by the Management Team ……………………………………………………………… 46
Financial Statements ……………………………………………………………………………………………… 60
Notes to Consolidated Financial Statements……………………………………………………………… 67
Consolidated Schedule …………………………………………………………………………………………… 98
Others ………………………………………………………………………………………………………………… 99
Non-Consolidated Financial Statements ………………………………………………………………… 100
Group Companies ………………………………………………………………………………………………… 104
Corporate Overview/Stock Infomation ……………………………………………………………………… 105
Editorial policy
The AIFUL Group creates Annual Reports so that stakeholders such as shareholders and investors can gain deeper understanding of our initiatives to grow the Group and to enhance corporate value. In this report, we have enhanced financial and non-financial information such as management philosophy, initiatives for corporate value creation, and business overview.
Reporting period
Period: Fiscal 2022 (April 1, 2022 to March 31, 2023) Some information after April 2023 is included.
Applicable companies: AIFUL Corporation and group companies inside and outside Japan
Forward-Looking Statements
The figures contained in this Annual Report with respect to AIFUL Group's plans and strategies and other statements that are not historical facts are forward-looking statements about the future performance of the AIFUL Group, which are based on management's assumptions and beliefs in light of the information currently available to it, and involve risks and uncertainties and actual results may differ from those in the forward-looking statements as a result of various factors.
Potential risks and uncertainties include, without limitation, general economic conditions in the AIFUL Group's market and changes in the overall market for consumer loans, the rate of default by customers, and the level of interest rates charged for or by the AIFUL Group.
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Year-on-Year Summary
Financial Highlight
Balance of operating receivables (billions of yen)
Fiscal 2021 | Fiscal 2022 | Exceeded | ||||||
887.4 | 1,015.9 | 1 trillion yen! | ||||||
Operating revenue (billions of yen) | ¥ | 83.2 billion yen | ||||||
Fiscal 2021 | Fiscal 2022 | Interest on operating loans | ||||||
132.0 | 144.1 | Revenue from credit guarantee | 17 billion yen | |||||
Revenue from installment sales | 23.1 billion yen | |||||||
Ordinary profit (billions of yen) | ||||||||
Fiscal 2021 | Fiscal 2022 | |||||||
12.2 | 24.4 | |||||||
Profit attributable to owners of parent (billions of yen)
Fiscal 2021 | Fiscal 2022 | ||||||
12.3 | 22.3 | ||||||
Financial indicators(%) | |||||||
Fiscal 2021 | Fiscal 2022 | ||||||
ROA | 1.4 | 2.4 | |||||
ROE | 8.2 | 13.5 | |||||
16.4 | 16.4 | ||||||
Capital adequacy ratio | |||||||
Non-Financial Highlight
Ratio of employees who have taken paid holidays(%)
Fiscal 2021 | Fiscal 2022 |
73.4 | 77.8 |
Ratio of male employees who have taken childcare leave(%)
Fiscal 2022
63.6 aiming for
100%
Ratio of females in recruiting full-time employees(%)
Fiscal 2021 | Fiscal 2022 |
38.0 | 36.1 |
Ratio of employees who have taken childcare leave(%)
Fiscal 2022
68.7 aiming for
100%
Ratio of full-time female employees(%)
Fiscal 2021 | Fiscal 2022 |
26.0 | 27.0 |
Number of non-Japanese employees
(including those recruited outside Japan) (persons)
Fiscal 2021 | Fiscal 2022 |
892 | 928 |
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AIFUL CORPORATION Annual Report 2023 | AIFUL CORPORATION Annual Report 2023 |
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Our History
1967
Yoshitaka Fukuda, AIFUL CORPORATION's current chairman, establishes a sole proprietorship as a consumer finance company
1978
Established Marutaka, Inc. (now AIFUL CORPORATION) and began business with three branches in Kyusyu and one in Kyoto
1982
Marutaka, Inc. absorbs three related companies
Name simultaneously changed to AIFUL CORPORATION
1984
2002
Established Compliance Committee
2003
Received "Listed Company Disclosure Commendation" from the Tokyo Stock Exchange
2004
Converted KOKUSAI Capital Co., Ltd. into 100% subsidiary
KOKUSAI Capital Corporation changed its name to New Frontier Partners Co., Ltd.
2013
New Frontier Partners Co., Ltd. (a consolidated subsidiary) acquired all shares in BUSINEXT CORPORATION owned by the Company and Sumitomo Mitsui Trust Bank Limited and made it a wholly-owned subsidiary
2014
LIFE GUARANTEE CO., LTD. (now AIFUL GUARANTEE CO., LTD.) commenced installment sales and credit guarantee business.
AIRA & AIFUL Public Company Limited, a joint venture, was established with AIRA Capital, as an overseas subsidiary in Thailand
2020
Established AG Miraibarai Co., Ltd., which manages the Postpay settlement business
Established Aiful Medical Finance Co., Ltd., which manages the business of medical fee-type secured loans
AIFUL Group companies below have been renamed as follows:
BUSINEXT CORPORATION to AIFUL BUSINESS FINANCE CORPORATION; AsTry Loan Services Corporation to AG Loan Services Corporation; and LIFE GUARANTEE CO., LTD. to AIFUL GUARANTEE CO., LTD.
2021
Aiful Medical Finance Corporation changed its name to AG Medical Corporation
Start of ATM operations
1985
Introduced first Scoring System (automated credit check system)
1994
Opened Heartful Center (now Contact Center)
1995
Completed installation of "Ojidousan", an automated loan agreement machine, at Kanda north exit branch and Ikebukuro west exit branch
1997
Over-the-counter registration of company's stock with the Japan Securities Dealers Association
2000
2007
Revised management philosophy. The new management philosophy is "Earn the trust of society through corporate activity based in integrity"
2009
Transferred all shares of 4 consolidated subsidiaries to NEOLINE CAPITAL Co., Ltd.
2010
LIFE Co., Ltd. established a wholly owned subsidiary for the credit card business and credit guarantee business, called Life Card Co., Ltd.
2011
Under the group reorganization, credit sales business as well as the
2015
AIRA & AIFUL Public Company Limited commenced the consumer finance business in Thailand with the A Money brand
Shares of Anshin Guarantor Service Co., Ltd., a group company, were listed on the Tokyo Stock Exchange Mothers
2016
New Frontier Partners Co., Ltd. changed its corporate name to AG Capital Corporation
2017
The 50th anniversary of AIFUL's establishment
2022
Established AG Smile Leaseback Corporation, which manages leaseback business
Changed the listing market to the Prime Market Revised the visual identity (VI) of the Group
2023
Revised the VI of Life Card
Revised the VI
Listed on First Section, Tokyo Stock Exchange and First Section, Osaka Securities Exchange
2001
Established business finance company Businext Co., Ltd. (now AIFUL BUSINESS FINANCE Corporation) through a joint venture with Sumitomo Trust and Banking Co., Ltd.
Transferred the head office to Shimogyo-ku, Kyoto (current location)
Converted LIFE Co., Ltd., into 100% subsidiary
Established servicer company AsTry Loan Services Corporation (now AG Loan Services Corporation) in joint venture with Aozora Bank, Ltd.
credit guarantee and insurance businesses of LIFE Co., Ltd. was transferred to LIFE CARD Co., Ltd. by way of corporate spinoff and merger
Furthermore, four consolidated subsidiaries including LIFE Co., Ltd. (following its spin-off) were merged into AIFUL
2018 | Changed the listing market to the Prime Market |
Established AsTry Partners Corporation | |
(now AIFUL Partners Corporation), which | |
manages the corporate turnaround & | |
restructuring business | Establishment of AG Medical Corporation |
Establishment of AG Miraibarai Co., Ltd. |
Establishment of AsTry Partners Corporation |
Conversion of LIFE Co., Ltd. into 100% subsidiary
Establishment of BUSINEXT |
Listing on First Section, Tokyo Stock Exchange |
Opening of Heartful Center |
Establishment of a consumer |
finance company |
50th anniversary of AIFUL's |
establishment |
Entry into overseas markets
LIFE GUARANTEE CO., LTD. |
started operation |
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To Our Investors and Shareholders
To Our Investors and Shareholders
Introduction
The AIFUL Group's consolidated results for fiscal 2022 are as follows: operating revenue was 144.1 billion yen (up 9.1% year-on-year), operating profit was 23.7 billion yen (up 111.0% year-on-year), ordinary profit was 24.4 billion yen (up 99.2% year-on-year) and profit attributable to owners of parent was 22.3 billion yen (up 81.1% year-on-year). The main reason for the increase in revenue and profit was that operating expenses d e c r e a s e d 4 0 0 m i l l i o n y e n ( d o w n 0 . 4 % year-on-year) to 120.4 billion yen, as provision for loss on interest repayment decreased 19.9 billion yen (down 100.0% year-on-year) while operating revenue increased 12 billion yen. In addition, as a
result of a steady increase of new accounts, consolidated balance of operating receivables amounted to 1,015.9 billion yen (up 14.5% year-on-year).
While the balance of operating loans receivable i s s t e a d i l y i n c r e a s i n g , t h e e n v i r o n m e n t surrounding the Group is rapidly changing due to the entry of competitors from different fields and the acceleration of digital transformation (DX), so we need to swiftly respond to these changes. In this environment, we will make group-wide efforts to increase operating assets mainly in the loan, credit card, credit guarantee, and overseas businesses and diversify our financial business, while dealing with interest repayment claims,
which is one of managerial issues, and continue business administration focused on the balance among "reliability," "profitability," and "growth potential." Furthermore, by establishing the AIFUL Group brand and advancing data utilization, we aim to evolve into an enterprise that will obtain strong support from our stakeholders, improve the credit screening ability with IT, and optimize m a n a g e r i a l r e s o u r c e s f o r m a x i m i z i n g consolidated profit.
Summary of financial results for fiscal 2022 The theme of the two-year plan ending in fiscal
2023, which was announced in June 2022, is "Go (new) Standard: Sophistication of customer
orientation." This management theme indicates t h a t t h e A I F U L G r o u p w i l l f o s t e r t h e customer-centric mindset and measure up to social standards in order to survive the digital business age under the concept of normalizing our business by dealing with things we have disregarded so far and modifying our systems rather than drastically changing our company in two years.
In fiscal 2022, we strove to diffuse "a design-focused attitude" inside our company, under the management theme "Innovation based on a design-focused attitude: To design u s e r - f i r s t s e r v i c e s . " T h e w o r d " d e s i g n " reminds most people of artistic creation, but our
Summary of financial results for fiscal 2022
Total operating assets up 14.5% | Operating revenue | Operating profit | |||||||||
year on year | year on year | ||||||||||
1,015.9 | year on year | ||||||||||
bn | up 9.1% | up 111.0% | |||||||||
144.1bn | |||||||||||
Loan business up 11.4% | bn | ||||||||||
year on year | |||||||||||
648.7bn | 23.7 | ||||||||||
Profitability
ROE | 10% | ROA | ||
more than | more than 2% | |||
13.5% | 3/2023 | 2.4% | 3/2023 | |
Credit business | up 22.4% | ||||
142.8 | year on year | Ordinary profit | Profit attributable | ||
bn | |||||
to owners of parent | |||||
up 99.2% | up 81.1% | ||||
year on year | year on year | ||||
Credit guarantee business up 18.4% | 24.4bn | 22.3bn |
203.4 year on year
bn
Growth potential
Balance of operating receivables more than 10% growth per annum
(Billions of yen)
1,200 | 1,015.9 | |||||
1,000 | 887.4 | |||||
820.4 | 816.5 | |||||
800 | 665.6 | 735.2 | ||||
600 | ||||||
400 | ||||||
200 | ||||||
0 | 3/2018 | 3/2019 | 3/2020 | 3/2021 | 3/2022 | 3/2023 |
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aiful Corporation published this content on 04 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 October 2023 08:47:13 UTC.