プレミアグループ（7199） – Financial Results Presentation for FY Ended March 31, 2022

Financial Results Presentation for FY Ended March 31, 2022May 6, 2022TSE Prime Section: 7199 Premium Group Co., Ltd.1. Summary of Financial Results for FY Ended P. 3March 31, 20222. Segment Overview3. Other TopicsMarch 31, 20235. Appendix4. Earnings and Dividend Forecast for FY Ending P. 18P. 9P. 15P. 2221. Summary of Financial Results for FY Ended March 31, 2022Highlights from FY Ended March 31, 2022✓ Market fell below FY21 and FY20 due to lower production of new automobiles owing to semiconductor shortages and reduced number of used passenger vehicles resulting from it✓ Nevertheless, both credit finance and automobile warranty segments posted record high volume, despite the negative market environment✓ The strong performance of our three core businesses resulted in higher revenue and profitsMarket◼ Number of new passenger vehicles registered: Full-year: Down 8.4% YoY /Q4 alone: Down 14.8% YoY ◼ Number of used passenger vehicles registered: Full-year: Down 5.8% YoY / Q4 alone: Down 8.3% YoY(Statistical data from the Japan Automobile Dealers Association)KPIs◼ Total volume of new loans: Full-year: Up 21.6% YoY / Q4 alone: Up 12.3% YoY ◼ Total volume of automobile warranties: Full-year: Up 14.7% YoY / Q4 alone: Up 16.6% YoY Total volume of products developed in-house (automobile warranties): Full-year: Up 35.6% YoY / Q4 alone: Up 53.7% YoYPerformance◼ Operating income: ¥20,827 million (up 16.8% YoY)◼ Profit before tax: ¥4,017 million (up 16.0% YoY)◼ Future expected earnings (deferred profit): ¥36,109 million stocked on B/S (up 19.4% YoY)Credit finance business: ¥30,065 million, Automobile warranty business: ¥5,703 million, Other businesses: ¥341 millionTopics◼ Released forecast for FY ending March 31, 2023◼ Selected as a “DX Certified Business Operator”◼ Established Car Premium Co., Ltd., a core subsidiary responsible for developing and promoting membership organizations for mobility providers4Consolidated Performance✓ Expansion of the three core businesses drove operating income higher by 16.8% YoY to ¥20,827 (Graph/table unit: millions of yen)✓ Profit before tax totaled ¥4,017 million (up 16.0% YoY) due to lower operating expenses from DX millionand Group synergiesFY21FY22YoY changeOperating incomeUp 16.8% YoYProfit before taxUp 16.0% YoY4,01720,827 3,463 Operating income17,82520,827 +16.8%Other income69447–93.2%17,825 Operating expenses14,89116,992 +14.1%Profit before tax3,4634,017 +16.0%Profit attributable to owners of parentBasic earningsper share (yen)2,3832,941 +23.4%186.74229.39+22.8%Note: Part of other financial expenses for FY21 were transferred to operating expenses.FY21FY22FY21FY225Performance by Segment(Graph/table unit: millions of yen)✓ Each segment posting steady growth in operating income✓ Profit growth of new auto mobility segment results driven by sales of parts and automobile wholesalingFinance segment–Composition–Credit, lease, servicerAutomobile warranty segment–Composition–Automobile warranty servicesAuto mobility segment–Composition–Parts sales, software sales, automobile wholesaling, automobile maintenance, etc.Other businessesTotal13,518Up 11.8% YoY4,446Up 9.5% YoY2,863Up 71.3% YoY0.720,827FY22Operating incomeProfit before taxGrowth of loan receivables and performance of servicer contributed to performanceWarranty growth and control of cost due to inter-Group synergies contributedOperating Income by SegmentFinance segmentAutomobile warranty segmentAuto mobility segmentExcluding other businesses(YoY change)20,827(+16.8%)2,863 (+71.3%)17,8251,671 4,059 4,446 (+9.5%)Gross profit grew despite being in business investment phase.12,094 13,518 (+11.8%)3,099637262554,017Notes: 1. Includes profits and losses from other businesses not included in reporting segments, netting of inter Group transactions and company wide profits and losses.2. Segment classification was changed from FY22. Profits and losses for each segment in FY21 is reflected only to the extent practicable.FY21FY226Operating Expenses (Consolidated)(Graph unit: millions of yen)✓ Operating expenses totaled ¥16,992 million (up 14.1% YoY)✓ Variable costs increased due to higher operating income in the auto mobility segment, but cost cutting measures, such as promoting inter Group transactions and paperless services, helped to control growth in operating expensesFY21 Operating expenses¥14,891 millionFY22 Operating expenses¥16,992 million (up 14.1% YoY)Operating incomeGuaranteecommissionWarranty costAuto mobility relatedcostPersonnel expensesDepreciation andamortizationSystem operationcosts/Outsourcingexpenses・ Commission expenses17,825 Operating income2,009 Guarantee commission2,616 910 Increase attributed to increase in loan receivablesCost controls through in-house procurement of parts(YoY change)20,827 (+16.8%)2,282 (+13.6%)2,642 (+1.0%)Cost increase attributed to growth in parts sales and automobile wholesaling1,730 (+90.1%)4,110 1,316 2,000 (+11.7%)4,591 No. of employees: 644 as of Mar. 31, 2022 (+51 vs end of FY21)(–1.6%)1,294 (+16.8%)2,337 Increase from promotion of DX, hiring, and outsourcing of loan operationsWarranty costAuto mobility relatedcostPersonnel expensesDepreciation andamortizationSystem operationcosts/Outsourcingexpenses・ Commission expensesOther expenses1,930 Operating income -Operating expenses2,934 Other expenses(+9.5%)2,114 Contribution owing to reduced expenses from outsourcing of credit operationsOperating income -Operating expenses3,836 (+30.8%)Notes 1: Since it is a preliminary value, we will promptly notify you on our website when any corrections or changes occur.2. Part of other financial expenses for FY21 were transferred to operating expenses.7Full-Year Performance(Graph unit: millions of yen)✓ Continued to post higher sales and profits YoY for five straight years since IPO in 2017 thanks to Group synergies and cost cutting with DX, despite the impacts of market weaknessFY21 resultsFY22 resultsFY21 resultsFY22 resultsOperating incomeUp 16.8% YoYProfit before taxUp 16.0% YoY17,825Q4(5,037)Q3(4,401)Q2(4,365)Q1(4,022)FY2120,827Q4(5,496)Q3(5,227)Q2(5,214)Q1(4,891)FY223,463Q4(664)Q3(797)Q2(822)Q1(1,180)FY214,017Q4(1,097)Q3(1,004)Q2(1,083)Q1(832)FY22Note: Operating income for Q4 FY21 includes the transfer of impairment loss on financial assets for Q1-Q3 FY21 to operating income.82. Segment OverviewFinance Segment: Total Volume of New Loans(Graph unit: billions of yen)Total volume of new loansAuto loan PHAuto loan PH…The average monthly total volume of new loans per sales staff202.3177.4166.4FY21Q4 aloneQ4 alone auto loan PHTotal volume of new loans:+21.6% YoYAuto loan PH: Unchanged YoY54.746.348.70.1820.1870.187Factors driving change◼ Achieved efficient sales activities through DX measures and sales organization restructuringPaperless contract rate: 87% (up 27.2pts YoY)Number of sales offices: 24 (+9 YoY)◼ Increased membership of Car Premium Club (formerly PFS Premium Club) contributed to higher volume, despite the negative impacts of the used automobile market◼ Nearly reached sales staff of 100Sales staff at FY-end: 95 (up +12 YoY)StrategyFY13FY14FY15FY16FY17FY18FY19FY20FY21FY22Notes: 1. “Total volume of new loans” refers to the total amount of credit and lease contracts newly signed in the period. The figures are inclusive of the total volume of new loans of products other than automotive credit financing (Ecology Credit, etc.), and are the actual results of Premium Co., Ltd.2. “PH” stands for “Per Head,” which refers to the average monthly total volume of new loans or warranties per sales staff. The monthly total volume of new loans refers to the total of the amount of credit contracts newly signed in a month. The amount of credit contracts refers to the total amount of the balance of charges for the product and the split commission. Furthermore, PH represents the actual results of Premium Co., Ltd.◼ Promoted enrollment in Car Premium ClubAiming to increase volume through provision of member-only services10Finance Segment: Loan Receivables(Graph unit: billions of yen, %)Loan receivablesDelinquency rate (more than 3 months)Loan receivablesDelinquency rate422.3361.4321.3Loan receivables:+16.8% YoYDelinquency rate:0.78%0.860.910.78%FY13FY14FY15FY16FY17FY18FY19FY20FY21FY22Notes: 1. “Loan receivables” refers to the total amount of credit and lease contracts that has not been repaid or for which the warranty period has not elapsed from the end of the period. The figures are inclusive of the receivables balance of products other than automotive credit financing (Ecology Credit, etc.), and are the actual results of Premium Co., Ltd.2. “Delinquency rate” refers to the total amount of receivables that are more than 3 months in arrears and special loan receivables (with judicial intervention), expressed as a percentage of the loan and lease receivables at the end of the period.Factors driving change in delinquency rate◼ Achieved operational innovation through DX measuresEfficiently eliminated initial arrears by combining IVR (auto calling system) and predictive calling (calling system with AI features)◼ Continuing collection activities for medium- to long-term delinquencies jointly with servicer subsidiaryCollection rate and collection amount of medium- to long-term delinquencies in March broke record highsStrategycalling◼ Carefully contained initial arrears using IVR and predictive ◼ Control medium- to long-term delinquencies through synergies with servicer subsidiary11Finance Segment: Number of Network StoresNumber of credit network storesNumber of network storesNumber of paid memberships(Car Premium Dealer)Target for 202530,000storesCar Premium DealerBroke through1,500 companies25,60323,9071,525 22,5493,000Number of credit network stores: +7.1％ YoYFactors driving change◼ Prioritizing efforts to encourage existing network stores to become paid members◼ Cultivation of new network stores progressing generally as plannedStrategy◼ Achieve brand uniformity by changing name of membership organization to Car Premium ClubMembership organization for used automobile dealers: Car Premium DealerDiamond members: 88 companiesGold members: 1,437 companies (up 342 vs. Q3)◼ Focus on promoting utilization and soliciting to become paid members while continuing to tap into new network stores◼ Achieve 1,500 member companies by the end of FY22 and aim for 2,000 by the end of FY2312FY14FY15FY16FY17FY18FY19FY20FY21FY22FY25Notes: 1. “Number of network stores” refers to the number of companies that have signed a network store contract, counting company as one network store even if that company has several stores, and are the actual results of Premium Co., Ltd.2. The aggregation criteria for Car Premium Dealer members were reviewed in FY22 Q3. Figures presented here were calculated using the new criteria.Automobile Warranty Segment: Total Volume of New Warranties(Graph unit: millions of yen)Total volume of new warranties5,154Total volume of new warrantiesTotal volume of new warranties in Q4 alone4,4934,363Automobile warranty: total volume of new warranties+14.7％ YoYTotal volume of products developedin-house: +35.6% YoYFactors driving change◼ Focused on growing sales of products developed in-house leading to steady growthVolume of products developed in-house reached record high in March◼ Affiliated products saw weaker growth amid the market downturnRecovery trend in some affiliated products from assignment of sales staff specializing in affiliated productsStrategy◼ Seek to increase sales by introducing new products◼ Promote use of maintenance network and used parts procurement in-house aimed at further cost reductions◼ Plan to introduce online application system to increase convenience and efficiency131,3351,1461,106FY13FY14FY15FY16FY17FY18FY19FY20FY21FY22Notes: 1. “Total volume of new warranties” refers to the total amount of warranty contracts newly signed in the period.2. “Total volume of Premium” refers to the total volume of Premium warranties among total automobile warranty volume. “Total volume of EGS” refers to the total volume of EGS warranties among total automobile warranty volume.3. The aggregation criteria for the volume of EGS were reviewed in FY22 Q3. Figures presented here were calculated using the new criteria.Performance in the Auto Mobility Segment(Graph unit: millions of yen)Operating incomeOthers: Directly managed maintenance facilities and membership organizations, etc.Number of maintenance network companiesNumber of network storesNumber of paid memberships(Car Premium Garage)3,514Number of maintenance network companies: 2,523 399 Target for 20253,0001,5002,863OthersSoftware salesAutomobile wholesalingParts sales1,671OtherSoftware salesAutomobile wholesalingParts salesFY21.4QFY22.4QFY21FY22FY25Operating income:+71.3% YoY+39.3% YoYFactors driving change◼ The volume of each service is increasing following expansion of paid membership organizations◼ Strong online sales of used automobile partsNet sales of Premium Parts reached record high in March◼ Acceleration of membership growth by adding new types to membership services for garagesStrategy◼ Achieve brand uniformity by changing name of membership organization to Car Premium ClubMembership organization for maintenance facilities: Car Premium GarageLoss on retirement occurred due to changes in revenue recognition method and brand◼ Work to increase paid memberships by expanding contents for membersDevelop customer traffic support service though the website for consumers143. Other TopicsProgress of DX Strategy✓ Transaction value of finance, automobile warranty and auto mobility services achieved through DX was set as KGI✓ The introduction rate of paperless contracts, which were launched in FY21, grewFinance Segment: Total Volume of Paperless ApplicationsTimeline of DX StrategyThe introduction rate of paperless contracts, which were launched in FY21, grew to 87%Achieved efficient sales activitiesLaunch of business DX is planned for FY23 ; Steady progress2022.32023.32024.3Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Paperless introduction rate83%79%74%87%For end-users“Premium—the place for cars”100%50%0%60%33%7%0%FY21 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY22 Q1 FY22 Q2 FY22 Q3 FY22 Q4Managing total volume of each business online as KPI of DX Strategy *System currently under developmentFinance segmentAutomobile warranty segmentAuto mobility segmentTotal volume of new auto creditTotal volume of auto leases*Total volume of new warranties*Total volume of each transaction through platforms*B to B (Premium) to C communications systemIntegrated as platformFor mobility providers: P-Gate network store portalResponse to CASE, MaaS, automobile electrificationFinance segment operational systemAutomobile warranty segment operational systemAuto mobility segment operational system XDssensuBi XDesuoh-nIWhole Group operational systemGroup-wide infrastructure developmentDaaS/Zero trust16Other TopicsJanuary 2022Began providing customer traffic support serviceIntroduced a delegation-based executive officer systemDXWe launched a referral service for individual customers who require after-sales service to maintenance facilities. This service is expected to help maintenance facilities increase transaction opportunities with new customers and secure customers under management, along with stabilizing their operations over the long term.From the perspective of further strengthening corporate governance, we will promote the separation of management decision-making and supervision from business execution, thereby reinforcing the functions related to management decision-making and supervision of the Board of Directors and further speeding up management decision-making.February 2022Introduced teleworkInvested in SaaS company EvolanyDXAiming to improve well-being, we are making efforts to secure and utilize a diverse workforce by offering flexible work styles tailored to each individual employees’ personal life.We decided to make this investment with the aim of contributing to the business growth of Evolany Co., Ltd., after determining the superiority of its services, management team well versed in SaaS, and future growth potential of its DX tools.April 2022May 2022August 2022Established Car PremiumSelected as a DX Certified Business OperatorWe established Car Premium Co., Ltd., a core subsidiary responsible for developing and promoting membership organizations for mobility providers (car dealers and car maintenance facilities nationwide).Following the company’s establishment, we changed the name of membership.▼Name of membership organization・ Membership organizations for car dealers and maintenance facilities: Car Premium(Formerly, PFS Premium Club and FIXMAN Club)DXWe were selected as a DX Certified Business Operator under the DX certification system administered by the Ministry of Economy, Trade and Industry. Going forward, we will further promote DX within the Group and grow our business based on our DX strategy.Plan to publish annual reportWe plan to publish our first annual report.In addition to financial and non-financial information, the report will contain our initiatives to achieve the medium-term vision.174. Earnings and Dividend Forecast for FY Ending March 31, 2023Consolidated Performance Forecast and Dividend Forecast for FY Ending March 31, 2023✓ Forecast calls for operating income of ¥24,500 million, profit before tax of ¥4,700 million, and for increased (Graph/table unit: millions of yen)sales and profits for sixth straight year✓ Considering the recent business environment, we expect the low production of new automobiles and inventory of used automobiles will continue✓ Forecast calls for annual dividend increase of ¥9 per shareFY22Forecast for FY23Operating incomeProfit before taxYoY net changeYoY changeUp 17.6% YoYUp 17.0% YoY24,500 Planning ¥265 million upfront investment in Car Premium websiteFor details, see p.204,7004,017 20,827 Operating income20,82724,5003,673+17.6%Profit before tax4,0174,700683+17.0%Profit attributable to owners of parentBasic earningsper share (yen)Annual dividend (yen)2,9413,400459+15.6%229.39264.5935.2+15.3%51609+17.6%FY22FY23ForecastFY22FY23Forecast19Upfront investment in Car Premium website(Graph/table unit: millions of yen)✓ ¥265 million will be used to build a website to support individual customers’ automobile purchase and usage as upfront investment for long-term growth✓ Aiming to generate synergies between businesses through the site and quickly contribute to profitsUpfront investmentBreakdown of ¥265 million (FY23 forecast)Upfront investment not included in the MTPPlanning to build website for individual customers (Car Premium website)In the future, looking to attract customers through the Car Premium website and drive traffic to membership organizationsAiming to generate synergies between businesses and quickly contribute to profitsMembership organizations for car dealers and maintenance facilitieseti isbewmumerP raCi )engnehcraes ecvreSi(PlatformBookings, business meetings, contractsSettlements and follow-upOrder placement, settlements, administration, etc.Information about services delivered by conciergeetaGP-)serots krowen rotf etis latroP(Individual customersNeedsUsed automobile purchaseVehicle inspectionMaintenance and repairsServices providedAutomobile warranty segmentAutomobile salesVehicle inspectionMaintenance / Sheet metal repair/paint20Developments heading into the final fiscal year of the MTP✓ Steady progress is being made with the key measures in the MTP✓ Began reviewing initiatives for the next fiscal year and beyondKey measures in the MTPProgress as of FY ended March 31, 2022Developments in FY ending March 31, 2023・Sale of repossessed vehicles to network stores in delinquencies in March broke record highs・Number of offices: Up 9 YoY;Number of sales staff: Up 12 YoY; Number of network stores: 25,603 companies・Paperless contract rate: 87%・Collection rate and collection amount of medium- to long-term ✓ Credit agreementsPaperless contract rate: 100%✓ Establish AI screening・Products developed in-house: +35.6% YoY・Cost cutting by driving automobiles to our network and procuring parts in-house・Built system for achieving the platform concept (already released part of system)・Developed new services under the Car Premium brand・Released original lease/subscription products✓ Enhance sales of original warranty products✓ Increase extended warranties✓ Go paperless using online applications✓ Fully expand Car Premium website (for consumers)✓ Expand Car Premium products✓ Enhance original lease products✓ Grow new business✓ Car Premium Dealer2,000 companies (progress rate 66.7%)✓ Car Premium Garage1,500 companies (progress rate: 100%)21・Membership organizations in 2025Car Premium Dealer: 3,000 companiesCar Premium Garage: 1,500 companies・As of March 31, 2022Car Premium Dealers: 1,525 companies (progress rate: 50.8%)Car Premium Garage: 399 companies (progress rate: 26.6%)Credit financenetwork stores・Expansion of sales area, workforce and number of ・Establishment of AI credit screenings system and achievement of paperless・Increase in collections of medium- to long-term delinquenciesmembership organizationsAutomobile warranty・Enhancement of sales of original warranty products・Development of products for extended warranties and grow sales・Reduction of repair costs and reflection to selling prices・Advertising campaign for increasing visibilityMobility・Expansion of service lineup・Promotion of platform concept・Rollout of original lease/subscription products nationwide・Development of new business that contributes to carbon neutralityCar Premium5. AppendixCompany ProfileNamePremium Group Co., Ltd.Securities Code / Exchange7199 / Prime Section of Tokyo Stock ExchangeEstablishedHead OfficeMay 25, 2015Note: 2007 Established Premium Co., Ltd. (Former name: G-ONE Credit Services Co., Ltd.)The Okura Prestige Tower, 2-10-4 Toranomon, Minato-ku, TokyoPresident and Representative DirectorYohichi ShibataNumber of Issued Shares13,394,990 (As of March 31, 2022)Capital¥1,668 million (non-consolidated: As of March 31, 2022)Number of EmployeesMain ShareholdersDescription of Business644 (consolidated; as of March 31, 2022)(Note) Number of persons employed by the Group excluding temporary workers・ Nomura Securities Co., Ltd. (Nomura Asset Management Co., Ltd. and Nomura International PLC): 9.65%・ Coupland Cardiff Asset Management: 6.99%・ BNY Mellon Investment Management Japan Limited: 6.09%・ Sumitomo Mitsui Trust Asset Management Co., Ltd. and Nikko Asset management Co.,Ltd.: 4.13%(As of March4, 2022; referencing the report on changes in large volume holdings, etc.)・ Finance ・ Automobile warranty ・ Auto mobility ・ Finance, automobile warranty, auto mobility overseas (Thailand, Indonesia, the Philippines)19Company Profile20B/SNote: Since it is a preliminary value, we will promptly notify you on our website when any corrections or changes occur.(Millions of yen)21FY21(As of March 31,2021)Q1_FY22(As of June 30,2021)Q2_FY22(As of September 30,2021)Q3_FY22(As of December 31,2021)FY22(As of March 31,2022)YoYQoQ Cash and cash equivalents8,0546,9628,1816,85911,433142.0%166.7%Financing receivables28,11523,84224,86025,73635,733127.1%138.8%Other financial assets5,10811,02711,96113,1765,786113.3%43.9%Property, plant and equipment3,6443,6133,5533,4193,648100.1%106.7%Intangible assets5,7685,7425,8596,0556,279108.9%103.7%Goodwill3,9583,9583,9583,9583,958100.0%100.0%Equity method investment1,4341,3481,3171,4321,600111.5%111.7%Deferred tax assets22423202.5%188.6%Insurance assets3,1113,5893,2623,5883,284105.6%91.5%Other assets8,9618,2317,7857,59810,075112.4%132.6%68,15668,31470,73971,82381,800120.0%113.9%Financial guarantee contracts25,07926,23927,56628,59730,065119.9%105.1%Borrowings19,64119,35718,97218,61823,759121.0%127.6%Other financial liabilities6,7036,1116,1585,8387,248108.1%124.2%Provisions302310310310366121.0%117.9%Income taxes payable648170562397720111.2%181.2%Deferred tax liabilities1,4041,4381,3781,4251,23888.2%86.9%Other liabilities7,0877,0937,4477,8438,590121.2%109.5%60,86560,71862,39363,02871,987118.3%114.2%Share capital1,6121,6271,6511,6781,700105.5%101.4%Capital surplus1,2811,2871,2871,2871,295101.1%100.6%Treasury shares△ 1,201△ 1,201△ 1,201△ 1,201△ 1,201100.1%100.0%Retained earnings5,4035,7096,4606,8287,722142.9%113.1%Other components of equity1169363112194166.5%173.5%Total equity attributable to owners of parent7,2117,5158,2608,7039,710134.6%111.6%79808692103130.2%112.8%7,2917,5968,3468,7959,814134.6%111.6%68,15668,31470,73971,82381,800120.0%113.9%Non-controlling interestsTotal equityTotal liabilities and equityAssetsTotal assetsLiabilitiesTotal liabilitiesEquityEquity attributable to owners of parentP/L (Consolidated cumulative period)Note: Since it is a preliminary value, we will promptly notify you on our website when any corrections or changes occur.(Millions of yen)22(Consolidated cumulative period)FY21(As of March 31, 2021)FY22(As of March 31, 2022)YoYOperating income17,82520,827116.8%Other finance income917191.9%Investment gain on equity method59213359.9%Other income694476.8%Total income18,58621,104113.5%Operating expenses14,89116,992114.1%Other finance costs644164.0%Other expenses1685532.5%Total expenses15,12317,087113.0%Profit (loss) before tax3,4634,017116.0%Income tax expense1,0701,05398.4%Profit (loss)2,3932,964123.8%Profit (loss) attributable to:Owners of parent2,3832,941123.4%Non-controlling interests1023220.1%P/L (Consolidated cumulative period)Note: Since it is a preliminary value, we will promptly notify you on our website when any corrections or changes occur.(Millions of yen)23(Consolidated cumulative period)FY21(As of March 31, 2021)FY22(As of March 31, 2022)YoYOperating income Finance income9,55310,615111.1% Warranty income4,0244,408109.5% Other commission sales1,9222,099109.2%　Automobility-related sales1,2812,349183.4% Software sales441522118.4%　Revenue from the exercise of insurance policies171224131.4% Impairment gain on financial assets388435112.2%　Other46175377.0%Total17,82520,827116.8%(Consolidated cumulative period)FY21(As of March 31, 2021)FY22(As of March 31, 2022)YoYOperating expenses Finance costs15314997.7% Guarantee commission2,0092,282113.6% Employee benefit expenses4,1104,591111.7% Warranty cost2,6162,642101.0%　Automobility-related costs9101,730190.1% System operation costs698801114.7% Depreciation1,3161,29498.4% Taxes and dues658686104.4% Commission expenses862959111.3% Rent expenses on land and buildings440577131.1% Outsourcing expenses544787.3% Other operating expenses1,0651,231115.6%Total14,89116,992114.1%P/L (Consolidated accounting period)Note: Since it is a preliminary value, we will promptly notify you on our website when any corrections or changes occur.(Millions of yen)24(Consolidated accounting period)4Q_FY21（January 1, 2021 – March 31, 2021）1Q_FY22（April 1, 2021 -June 30, 2021）2Q_FY22（July 1, 2021 -September 30,2021）3Q_FY22（October 1, 2021 – December 31,2021）4Q_FY22（January 1, 2022 – March 31, 2022）YoYQoQOperating income4,7224,8915,2145,2275,496116.4%105.2%Other finance income611119149.3%83.1%Investment gain on equity method46315311042942.7%335.9%Other income4141533△ 2-4.2%△5.2%Total income4,7734,9585,2445,3025,608117.5%105.8%Operating expenses3,9494,0854,1314,2774,448112.6%104.0%Other finance costs724302714188.0%51.1%Other expenses15316-△ 74931.9%△701.7%Total expenses4,1094,1254,1614,2984,511109.8%105.0%Profit (loss) before tax6648321,0831,0041,097165.2%109.2%Income tax expense118224326309192163.0%62.2%Profit (loss)546608757695905165.6%130.2%Profit (loss) attributable to:Owners of parent548608751689894163.2%129.9%Non-controlling interests△ 206610-536.9%163.4%P/L (Consolidated accounting period)Note: Since it is a preliminary value, we will promptly notify you on our website when any corrections or changes occur.(Millions of yen)25(Consolidated accounting period)4Q_FY21（January 1, 2021 – March 31, 2021）1Q_FY22（April 1, 2021 -June 30, 2021）2Q_FY22（July 1, 2021 -September 30,2021）3Q_FY22（October 1, 2021 – December 31,2021）4Q_FY22（January 1, 2022 – March 31, 2022）YoYQoQOperating income– Finance income2,3112,4582,5332,6782,777120.2%103.7% Warranty income1,0601,0721,0951,1261,114105.1%98.9% Other commission sales53253053350852899.1%103.9%　Automobility-related sales517516562573698135.0%121.7% Software sales12392127148155126.0%105.1%　Revenue from the exercise of insurance policies83-109-115139.0%- Impairment gain on financial assets73144158775676.9%72.7%　Other22799811652231.4%44.5%Total4,7224,8915,2145,2275,496116.4%105.2%(Consolidated accounting period)4Q_FY21（January 1, 2021 – March 31, 2021）1Q_FY22（April 1, 2021 -June 30, 2021）2Q_FY22（July 1, 2021 -September 30,2021）3Q_FY22（October 1, 2021 – December 31,2021）4Q_FY22（January 1, 2022 – March 31, 2022）YoYQoQOperating expenses– Finance costs3825201639103.6%250.7% Guarantee commission515542563582595115.6%102.3% Employee benefit expenses1,0701,1231,0401,2021,226114.6%102.0% Warranty cost602653731656602100.0%91.7%　Automobility-related costs405380419422510126.0%120.9% System operation costs178213204192192108.1%100.4% Depreciation39430930932834988.6%106.4% Taxes and dues145174169174171118.1%98.4% Commission expenses243250215237257105.6%108.2% Rent expenses on land and buildings131312111287.3%105.3% Outsourcing expenses148138151133156105.1%117.7% Other operating expenses199268297326340170.9%104.5%Total3,9494,0854,1314,2774,448112.6%104.0%IR information in this material is for providing financial data and economic condition of Premium Group Co., Ltd. (Hereinafter “Company”). However, this information should not announce and guarantee its contents. Statements contained herein that relate to the future operating performance and strategy of the Company are forward looking statements. Forward looking statements are based on judgments made by the Company’s management based on information that is available to it as of the date those statements were made. Forward looking statements involve inherent known and unknown risks, uncertainties and contingencies. Many of these risks and uncertainties relate to factors such as future market conditions, currency fluctuation s, the behavior of other market participants, the exchange rate, tax system and so on. Therefore, it is possible that business performance will be change and the Company is not responsible for loss resulted from this change. The Company puts information in this material with meticulous care. However, the Company is not responsible for any information errors, manipulations by outsider computer system errors, and so on. Copyrighted materials in this are under copyright protection. It is prohibited to reproduce, reorganize, translate, distribute or exhibit this material. This material is not for the purpose of investment invitation. Any investment decision with respect to the shares of common stock of the Company should not be based on this material fully but be made solely.