Letter to Shareholders
I would like to express my sincere gratitude to all ACOM stakeholders for your continuous patronage to the Group.
The competitive structure of domestic personal card loan market remained to involve different players among bank and nonbank categories. The growth rate of portion represented by banks turned negative as banks addressed voluntary measures in response to “Mutual Agreements on Consumer Lending by Banks”, announced by Japanese Bankers Association.
Nonbank sector, on the other hand, saw steady decrease in the requests for interest repayment. However, we need to keep a close eye on its future trend due to its high susceptibility to the impacts of changes in the external environment.
In such an environment, the Company Group has strived to expand its shares in the market for personal card loans under its management vision of “strive to become the leading company in personal loan market which provides prime satisfaction to the utmost number of customers and win their trust in return.”
For the year ended March 2019, guaranteed receivables fell below target value due to external environmental changes. Nonetheless, loan and credit card business and overseas financial business was generally in line with the targets.
With regard to business performance, consolidated operating revenue increased by 5.2% year-on-year to 277.0 billion yen. However, consolidated operating expenses increased by 20.2% year-on-year to 219.4 billion yen due to addition made to provision for loss on interest repayment. The Company Group recorded following results: operating profit of 57.6 billion yen, ordinary profit of 58.2 billion yen, and profit attributable to owners of parent of 37.7 billion yen.
Although the Group’s three core businesses are growing steadily, addition made to provision for loss on interest repayment led consolidated shareholders’ equity ratio, computed using the sum of total assets and guaranteed receivables, to drop to 14.2% and remain below our target value 20%.
Under current circumstances, we plan 1 yen year-end dividend for the year ended March 2019 as initially planned.
The Group will endeavor for stable and continuous profit distribution for the year ending March 2020. Specifically, we expect increased annual dividend of 4 yen, comprising of 2 yen at both interim and year-end.
A new medium-term management plan made start from the year ending March 2020. The Group has set quantitative targets as follows: 2.5 trillion yen of consolidated receivables outstanding; 284.2 billion yen of operating revenue; 91.0 billion yen of operating profit; 20% of consolidated shareholders’ equity ratio, computed using the sum of total assets and guaranteed receivables; and consolidated ROE of 12% or more.
We will endeavor to meet stakeholders’ expectations, maximize corporate value through sustainable growth, and become a corporate group that contributes to society as we keep close cooperation with MUFG Group.
I humbly ask for your ongoing support as we embrace the challenges for the future.