Wedge Holdings Company Limited Business Presentation March ... · Finance Business（GLF Cambodia)...

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Wedge Holdings Company LimitedBusiness Presentation

March 2014

7 March 2014

www.wedge-hd.com

ContentsPart 1 1st Quarter Financial Results

-Consolidated Operating Results(P/L)-Consolidated Financial Position(B/S)-Segment Results

Part 2 Finance Business-Finance Business (GL Thailand)-Rapid leasing growth from business expansion-Allowance for Bad Debt Standards in Thailand and Japan-Thailand’s GDP Growth Rate-Transition of Motorcycle Sales (Units) in Thailand-Conditions of Bangkok Demonstration-Conditions of Demonstration (Central Bangkok)-Conditions of Demonstration (Outskirts of Bangkok)1:Controlled Growth-Controlled Growth of Sales-Controlled Increased Amount of Allowance for Bad Debts-Controlled Increment Rate of Allowance for Bad Debt

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Contents

Part 2 Finance Business-Finance Business (GLF Cambodia)2: International Expansion – Cambodia・Transition of Motorcycle POS・Monthly Transition of Number of New Contracts3: Offering of new services – Agricultural machine lease・Cooperation with SIAM KUBOTA ・Initiated Establishment of Agricultural Machine Lease POS・Established Agricultural Machine Lease POS・Photos of KUBOTA FAMILY DAY held at Kampong Thom Province

Part 3 Entertainment Business・Implementation of 3 Measures・Transition of Business Results of Entertainment Business

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4

1st Quarter Financial Results

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Consolidated Business Results(P/L)

（units：1000JPY）

Q1Sept 2013

Q12014 Sept

YOY

Sales 988,874 1,383,049 139.9%

Operating Income 221,111 -102,082 -46.2%

Ordinary income 227,929 -50,124 -22.0%

Current Net Income 48,354 -56,802 -117.5%

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Consolidated Financial Position（Ｂ/Ｓ）（units：1000JPY）

Consolidated B/S Sept 2013 Q1 Sept 2013 Ratio

Current Assets 15,330,482 16,506,957 107.7%

Fixed Assets 3,865,298 4,048,271 104.7%

(Breakdown)Investments and other

assets2,750,090 2,872,795 104.5%

Total Assets 19,195,780 20,555,228 107.1%

Current Liabilities 5,379,742 6,341,267 117.9%

Fixed Liabilities 4,078,836 4,263,606 104.5%

Total Liabilities 9,458,578 10,604,873 112.1%

Shareholders' Total Equity

5,259,714 5,202,911 98.9%

Total Net Assets 9,737,202 9,950,354 102.2%

Current Ratio 285.0% 260.3%Fixed Ratio 73.5% 77.8%Equity Ratio 27.4% 25.3%D/E Ratio 170.4% 194.7%

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Segment Results（units：1000JPY）

※Merchandizing Business has been transferred in the previous consolidated financial year and therefore is excluded

Segment Q1Sept 2013

Q1Sept 2014 YOY

Sales 733,099 1,231,737 168.02%Segment Profit 259,675 ▲ 6,902 -2.66%

Sales 145,355 150,934 103.84%Segment Profit 21,167 45,070 212.93%

Finance Business

Entertainment Business

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Main Topics

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Rapid leasing growth from business expansion45% annual growth of total loan (portfolio)

of Finance business.

31 Dec 2012

3,097 million baht（Approx 9.9 billion JPY）

31 Dec 2013

4,509 million baht（Approx14.4 billion JPY）

※30 DEC 2013 Yen-denominated exchange rate.For convenience, calculation is of 3.21 yen per 1 Baht

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Allowance for Bad Debt Standards in Thailand and Japan

Difference in allowance standards between Thailand and Japan is 119 million bahtAdditional 381 million yen is calculated

Japanese Standard Allowance for Bad Debt

509milion Baht

Thai Standard Allowance for Bad

Debt390million Baht

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Finance Business

GL continues the following 3 measures:１. Controlled growth (emphasizing on

quality of credit rather than sales growth)

２. International expansion - Cambodia

３．Offering of new services – Agricultural machine lease

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Finance Business(Thailand）

タイＧＤＰ成長率

-15

-10

-5

0

5

10

15

20

25

2011Q1 2011Q2 2011Q3 2011Q4 2012Q1 2012Q2 2012Q3 2012Q4 2013Q1 2013Q2 2013Q3 2013Q4

Thailand’s GDP Growth Rate

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Transition of Motorcycle Sales (Units)

2013 Total 2012 Total Fluctuation

2,004,498 2,130,067 -5.9%

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Conditions of Bangkok Demonstration

Date Case Development

4 Jan 2014Announcements were made for a massive protest and gatherings to take place after 13 Jan

6 Jan 2014

Announcements were made for 7 locations in Bangkok including Asoke Intersection, Ratchaprasong Intersection and Victory Monument to be the bases for protesting

13 Jan 2014

Large-scaled protestation took place at the Government Complex, Victory Monument, Lat Phrao Intersection, Asoke Intersection, Ratchaprasong Intersection, Pathumwan Intersection and Lumphini Park

14 Jan 2014An explosion occured near the leader's residance of the People's Party (Sukhumvit Road Soi 31)

17 Jan 2014A hand grenande exploded at Banthat Thong Street (near BTS National Stadium)

21 Jan 2014 Thai Government declared a state of emergency in Bangkok

18 Feb 2014Conflicts involving casualities occurred at Phanfa Bridge (near the Democracy Monument)

23 Feb 2014An explosion involving casualties occurred at Ratchaprasong Intersection

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Conditions of Demonstration (Central Bangkok)

Democracy Monument

Victory Monument

Lumphini Park

Asoke Intersection

Pathumwan Intersection

Rachaprasong Intersection

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Conditions of Demonstration (Outskirts of Bangkok)

Government Complex

Lat Phrao Intersection

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1: Controlled GrowthDue to the recent decline of new contracts, we will plan to improve the quality of credits to decrease bad debts in order to correspond to Thailand’s economic slowdown and to increase profits in the future.

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2011

2012

2013

2014

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Controlled Growth of Sales

Continued expansion of sales of Finance business along with expansion of portfolio

Group Lease PCL.売上高の四半期推移（単位：千バーツ）

-

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

09Q1 09Q2 09Q3 09Q4 10Q1 10Q2 10Q3 10Q4 11Q1 11Q2 11Q3 11Q4 12Q1 12Q2 12Q3 12Q4 13Q1 13Q2 13Q3 13Q4

Revenue

Group Lease PCL. Quarterly Transition of Sales (Unit: 1000 baht)

Main reasons for increased allowance for bad debts・Continued portfolio expansion from previous year・Low level of allowance in the previous year as reserves temporarily increased due to floods

・Shifted to a conservative allowance for bad debt criterion implemented during the end of 2012

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Controlled Increased Amount of Allowance for Bad Debts

1,000 baht

Group Lease PCL.貸倒引当金の四半期推移（単位：千バーツ）

-

20,000

40,000

60,000

80,000

100,000

120,000


Group Lease PCL. Quarterly Transition of Allowance for Bad Debt

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Controlled Increment Rate of Allowance for Bad Debt

Group Lease PCL.貸倒引当金の四半期増加率推移

-0.8

-0.6

-0.4

-0.2

0

0.2

0.4

0.6

0.8

1

1.2


-5.4

-1.4

2.6

6.6

Group Lease PCL. Transition of Quarterly Increment of Allowance for Bad Debt

Main reasons for increased allowance for bad debts・Continued portfolio expansion from previous year・Low level of allowance in the previous year as reserves temporarily increased due to floods

・Shifted to a conservative allowance for bad debt criterion implemented during the end of 2012

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2: Finance Business (GLF Cambodia)Transition of Motorcycle POS

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5

10

15

20

25

30

35

40

45

50

8-12 9-12 10-12 11-12 12-12 1-13 2-13 3-13 4-13 5-13 6-13 7-13 8-13 9-13 10-13 11-13 12-13 1-14 2-14

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Finance Business（GLF Cambodia)Monthly Transition of Number of New Contracts

カンボジア新規契約者数推移

0

100

200

300

400

500

600

700

800

900

1000

Jan

Feb

Mar Ap

rMay Ju

nJu

lAu

gSe

pOc

tNo

vDe

c

2012

2013

2014

Transition of Number of New Contracts in Cambodia

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Finance Business (GLF Cambodia)

Cooperation with SIAM KUBOTA to initiate agricultural machine lease

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Finance Business (GLF Cambodia)Initiated Establishment of Agricultural Machine

Lease POS

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Finance Business (GLF Cambodia) Established POS of Agricultural Machine Lease

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Photos of KUBOTA FAMILY DAY held at Kampong Thom Province

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Entertainment Business

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Entertaintment Business

Continued uphill battle due to withdrawals of existing clients from the publishing business this term.

The entertainment business will implement the following preparations

1. Acquisition of new clients & contents and relate closely with existing clients

2. Equip a “Free-environment” that promotes Pioneer Spirit

3. Multilingual development throughout Asia

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Transition of Business Results of Entertainment Business

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0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

11Q111Q211Q311Q412Q112Q212Q312Q413Q113Q213Q313Q414Q1

Entertainment Business: Quarterly Transition of Sales

SegmentProfits

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Contact details for IR-related inquiriesWedge Holdings CO., LTD. Management

Administration DepartmentTEL: 03-6225-2161 / FAX: 03-3548-

[email protected]

http://www.wedge-hd.com

※*These materials include statements concerning the future, but these statements are not a guarantee of future results. Furthermore, the contents of these materials has not been audited and neither its

accuracy nor certainty is guaranteed.

Thank you!

Wedge Holdings Company Limited Business Presentation March ... · Finance Business（GLF Cambodia)...

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